In the prospectus it basically states that this instrument is engineered to "possibly" go as close to zero as possible. That will eventually happen. I have no doubts at all. But... for that to occur we'd need gold
to start moving substantially higher. That is not happening anytime soon. Maybe another 80 dollars per ounce, but don't see it gaining more ground than that before testing the $1000 level. Notable traders have repeatedly stated that gold
conforms with charting techniques better than most other products. I completely agree with that statement. Simply stated, gold
historically respects structure and rhythm. If that is the case, then so should its counter derivative, DUST.
The bet here is simple, buy gold
when DUST is trading at an "extreme" high. Short DUST to the ground when it's at an extreme. (Careful with shorting DUST, since DUST too could breakout, and it could breakout strong, so this particular execution strategy is definitely not suggested. It is best to just buy gold
at DUST's extreme level.)
Consider buying DUST at $11 - but be very careful with buying this at $11. Double check the structure and confluence for gold
and that gold
would be at an unlikely point to breakout.