I'd like to short Gold

mason805 · Post by **mason805** » Sun Mar 02, 2008 2:42 pm

How can I do this if I am not a 100,000:1 leveraged futures trader working on Wall Street.

I want to sell short the hell out of Gold with my worthless dollar.

Please advise.

Thanks, and seriously, Allah bless you all.

Good luck and God's speed.

Regards.

Randumb · Post by **Randumb** » Sun Mar 02, 2008 3:03 pm

"How can I do this if I am not a 100,000:1 leveraged futures trader working on Wall Street"

What the hell are you talking about? Open a commodities brokerage account, find a gold quote, and push the sell-short button.

benji · Post by **benji** » Sun Mar 02, 2008 3:04 pm

both etfsecurities and deutsche bank have a short gold etf. deutsche even have a leveraged short gold etf. i wouldn't be surprised if other providers also have the same sort of products. HTH.

baghead · Post by **baghead** » Sun Mar 02, 2008 3:32 pm

yep, ETFs are probably the easiest way of trading commodities PA.

since you seem to have a very strong conviction already let me just say that there are roughly 200 million people in both, India and China each who will advance into Middle Class over the next 5 to 10 years and that physically possessing gold is very much culturally rooted in both societies.

Tradenator · Post by **Tradenator** » Sun Mar 02, 2008 11:09 pm

While they are not the best approach to make money, you can short gold with CFDs fairly easily. Google "contract for difference". Be prepared to get ripped off on the financing rate, and watch out that they don't shake you out of your stops.

Thanks for the blessings, I'm sure I need all the help I can get, but I would also guess that since you want to go short you aren't at all concerned about Shari'ah Law so I find it all a bit odd.

jungle · Post by **jungle** » Sun Mar 02, 2008 11:41 pm

As I recall, short XAUUSD was GS FX strategy's top trade rec. for '08. Chew

mason805 · Post by **mason805** » Mon Mar 03, 2008 2:11 am

Shorting the Philly Gold index AGAINST the USD? I will research that. I see the correlation, though. Thanks Jungle.

Tradenator, I take it if we live in the US then we're prohibited from doing contract for difference transactions? And no, I don't care too much for Shari'ah. Is going short really forbidden in Islam? I had no idea. But, I can see why. We're hoping to profit from the fall in the price of something so you can pocket the difference.

Benji, thanks for the head's up about DB short gold ETNs. It does concern me a bit that these notes are backed only by DB's good faith and credit. They do look to be the most promising option, though.

I must be crazy to think about shorting gold, though. I mean, it's shot up forty-some percent in the last few months. Do we know for sure every last ounce of it has been mined and is currently stored by governments and banks? Do we know for sure that it's going to keep sky-rocketing? I mean, it is a finite commodity so if people are hoarding it, especially those people's of India and China, it could possibly go up and keep going and never drop again.

Tradenator · Post by **Tradenator** » Mon Mar 03, 2008 2:34 am

On CFDs in the US, google it. On the desire to fade the gold bugs, remember that timing the market brings additional risks. Perhaps you should get a broker, load up a margin account with the minimum required and buy a put? At least you cap your downside that way. There are phorum members here who can advise you on that approach.

If your trade is more about the USD than gold, you should consider a dollar index trade too.

jungle · Post by **jungle** » Mon Mar 03, 2008 2:12 pm

XAUUSD is spot gold. The XAU Index is the Philly Gold and Silver Index. It's an index of miners, so it's not a very clean way to short gold.

KCMM · Post by **KCMM** » Wed Mar 05, 2008 1:47 am

Short GLD if you have a stock account. Otherise, short gold futures on the COMEX if you have a commodities account. Margin is 4,050 on a contract face value of 97,000. Not quite 100,000:1 leverage.