buying some base metal index etf?

N

newguy05

i am thinking about investing part of my ira in base metals, specifically the DBB. The price has been crushed, but i am not too certain if it will continue to go lower.

Looking for some insight on current fundamentals and if now is a good time to get in on the base metal.

thanks
 
Quote from newguy05:

i am thinking about investing part of my ira in base metals, specifically the DBB. The price has been crushed, but i am not too certain if it will continue to go lower.

Looking for some insight on current fundamentals and if now is a good time to get in on the base metal.

thanks
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Or lever to it and pick some stocks.. AA, FCX, X etc.
 
but then you are assuming counterparty risk. Isnt it too risky in this environment? Even for giants like aa, can anyone be certain they will still be around a year from now if situation continues to deteriorate.
 
Quote from newguy05:

but then you are assuming counterparty risk. Isnt it too risky in this environment? Even for giants like aa, can anyone be certain they will still be around a year from now if situation continues to deteriorate.
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ETFs have counterparty risk too...

If you are that worried, then I recommend you go buy some futures contracts and take delivery some commodity.

But honestly, if you are concerned about counterparty risk, I recommend precious metals, not industrial metals...
 
Quote from newguy05:

...DBB. The price has been crushed, but i am not too certain if it will continue to go lower.
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I have some DBB, along with DBA and DBO. Call it the "Rogers Lite" part of the portfolio. Based on the fairly recent past, there is no reason these can't drop another 30%. Hell, if we're as deflationary as it appears we may be, they may drop a lot more.

But at some point, if you want to hold these things for the long term, there's nothing to do but jump in and hope! Just pick your pain threshold carefully. :)
 
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