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#1 Mon, Jun 4, 2012 - 7:15pm
Joined: Mar 21, 2012


Now that mining companies appear to have turned the corner, what's everyone's opinion of NUGT?

Before you flame me about paper vs. stacking, I play the market in paper in my IRA. I use a lot of leveraged funds (UGLD, USLV, LPLT, BGZ, BZQ, FAZ, etc.), which allow me to earn paper $. My ultimate end-game will be to buy stock in good solid companies once we crash to a bottom. Or possibly cash out if the system seems to be truly breaking down.

Edited by: Irksome on Nov 8, 2014 - 5:15am
Fri, Jun 29, 2012 - 8:17am
Joined: Aug 29, 2011

Short term play

Direxion is quite frank about it: https://www.direxionshares.com/education.html

Direxion Shares are leveraged Exchange-Traded Funds (ETFs) designed to seek daily investment results, before fees and expenses, of 300% of the performance (or 300% of the inverse of the performance, in the case of a bear fund), of the benchmark index that they track. There is no guarantee that the funds will achieve their objective.

These funds are intended for use only by sophisticated investors who: (a) understand the risks associated with the use of leverage; (b) understand the consequences of seeking daily leveraged investment results; and (c) intend to actively monitor and manage their investments.

These funds are NOT intended for use by conservative investors who: a) cannot tolerate substantial losses in short periods of time; b) are unfamiliar with the unique nature and performance characteristics of funds that seek leveraged daily investment results; and c) are long-term investors who do not monitor their portfolios frequently.


DUST, the bearish 3x leveraged gold miners ETF, has had a role to play on the way down. For a recovery, I prefer GDX & GDXJ, especially since we can't know how long the "bottoming out / false break-out" cycle is going to last. NUGT is constantly losing value in a market moving sideways.