STOCKS OF SILVER

[DOLLARLAND]

New ETNs Add Juice (300%) To Leverage Gold & Silver

By Murray Coleman
VelocityShares is set Monday to launch a set of exchange-traded notes that will give experienced commodities traders new tools to leverage positions.

The new ETNs will provide 300% exposure to S&P benchmarks tracking gold and silver. Versions will be offered for “3x” leveraged plays and “3x” inverse bets on both precious metals.

Levered ETF and ETN instruments already on the market include:

The ProShares UltraShort Silver ETF (ZSL), which seeks 200% inverse exposure.
The PowerShares DB Gold Short ETN (DGZ), a straight bet against the yellow metal’s rise.
The ProShares UltraShort Gold ETF (GLL), a 200% inverse fund.
The ProShares Ultra Silver (AGQ), which seeks 200% exposure to spot prices.
Also, VelocityShares plans to bring to market Monday a pair of 200% levered ETNs focused on platinum futures. Two others will do much the same with palladium, offering “2x” leveraged long, and conversely, “2x” inverse plays.

ETNs trade like ETFs but are actually debt securities. The eight new VelocityShares are designed to give institutional investors and hedge funds their first chance to trade products that offer triple returns on gold. They are also believed to be the first leveraged notes in the market tied to platinum and palladium.

VelocityShares’ triple-leveraged gold and silver ETNs will trade under the tickers “UGLD” and “USLV.”

The triple-inverse gold and silver ETNs will trade under “DGLD” and “DSLV.”

The double-leveraged platinum and palladium ETNs will trade under “LPLT” and “LPAL.”

Their inverse products will trade under “IPLT” and “IPAL.”

VelocityShares is best known for its six ETNs tied to the Chicago Board Options Exchange Volatility Index, or VIX. The most active of the volatility products is the Daily Inverse VIX Short Term ETN (XIV). Another of its more popular funds is the VelocityShares Daily 2x VIX ETN (TVIX).