DB Gold Double Short ETN (DZZ)

[wealthmoney]

– Now, if you’re wondering why the gold price dropped a rather large US$100 overnight, here’s the answer, or at least part of it:

– The CME Group, who owns and runs the COMEX gold futures market, just announced a margin increase of 27 per cent, effective from close of business on 25 August.

– That is a hefty increase and comes after a 22 per cent increase announced two weeks ago.

– So if you’re a gold futures speculator and want to buy 100 contracts of COMEX gold futures (1 contract = 100 ounces), yesterday it cost US$742,500 to establish the position. On Friday, the same position will soak up US$945,000 of your cash.