Gyroscopic Investing

Backed by physical gold but also allows investors to benefit from a strong dollar environment.

http://finance.yahoo.com/video/gold-etf ... 00696.html

Any thoughts?

My initial thoughts are that it will be interesting to watch, but it would seem that you are effectively cancelling out your reason to hold gold in the PP. Sure there have been times where both go up and down together, but unless you can prove that correlation is >50% it would seem this ETF would be a losing proposition? Of course I don't know the hedging ratio or other critical information, just my thoughts.

Currently, with the dollar coming back down over the past couple hours, GLDW is going down while GLD is steady to rising. Not exactly what I would be looking for in holding gold.

Not enough info, but I don't think this is the kind of gold exposure for a PP. I'd like to better understand the product, though.

I don't understand the problem it's trying to solve. It is so you don't lose money if the US Dollar strengthens?

It's too complex to understand, so it's too complex to invest in.

Also, even if it worked the way it sounds, it would be inappropriate for the PP, where the gold is used as a counterweight to the dollar.

I'd guess it's for people who thing global demand for gold will go up, but don't want additional currency exposure?

Gold for us is quoted in dollars so there isn't a direct hedge. Gold is in effect a Forex cross like any other foreign currency/dollar cross. My guess is the dollar hedge is against a basket of currencies. Normally gold is going to very roughly move in the opposite direction of the dollar but it is conceivable that gold could be going up at the same time the dollar is going up so you could get a double bonus. But likely this product is self defeating the majority of time in the context of a PP.