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<p>[QUOTE=&quot;Brett_in_Sacto, post: 2325167, member: 71510&quot;]From a Barron&#039;s article this week on gold ETF&#039;s:</p><p><br /></p><p>Quantities of synthetic gold sold are created out of thin air, with almost no connection to physical metal. The negative investment thesis seems to rest upon confidence that central bankers, and the Fed in particular, will steer a course away from radical monetary experimentation that will return to a normal structure of interest rates and robust economic growth.</p><p><br /></p><p>The fact that these expectations have not been fulfilled in the nearly nine years since the initiation of zero interest rates, notwithstanding the recent 25-basis-point Fed rate hike, leads us to believe that investor credulity in central bankers may be stretched about as far as it can go.</p><p><br /></p><p>The<b> very popular short exposure in gold is, in our opinion, vulnerable to a trend reversal/mega short squeeze</b>. <b>This would occur if gold ETF assets under management (AUMs) were to rebuild or if holders of COMEX futures were to stand for delivery in a big way</b>.</p><p><br /></p><p><a href="http://blogs.barrons.com/focusonfunds/2016/01/19/gold-prices-ripe-for-mega-short-squeeze-fund-manager-says" target="_blank" class="externalLink ProxyLink" data-proxy-href="http://blogs.barrons.com/focusonfunds/2016/01/19/gold-prices-ripe-for-mega-short-squeeze-fund-manager-says" rel="nofollow">http://blogs.barrons.com/focusonfunds/2016/01/19/gold-prices-ripe-for-mega-short-squeeze-fund-manager-says</a>[/QUOTE]</p><p><br /></p>

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