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<p>[QUOTE=&quot;Cloudsweeper99, post: 766620, member: 3011&quot;]It&#039;s easy to come up with scenarios of doom for any investment, and it is a good practice because EVERY investment has something wrong with it.&nbsp; It is the function of an analyst to figure it out and determine whether or not the probability of gain exceeds the probability of loss.&nbsp; With the gold ETF, there are a few points to remember.&nbsp; (1) Not everyone can sell their shares unless someone else buys them. (2) The ETF is more of a price-taker than price-maker. (3) $39billion just isn&#039;t very much money in the institutional investment world. (4) Institutions are under-invested in metals, not over-invested. (5) It is just as likely that the short positions in GLD will have to be covered as it is that the longs will have to sell.&nbsp; (6) Some investors, such as Greenlight Capital, don&#039;t believe GLD has all of the gold they claim.&nbsp; In that situation, there might be a rush to sell GLD and purchase physical gold at some point, which is more likely to raise prices than lower them.&nbsp; Or, GLD may be forced to rush to purchase physical gold to back the claims against their shares. There are other points, but I think this makes the case that some sort of massive liquidation of the ETF isn&#039;t really much of a threat to gold prices.[/QUOTE]</p><p><br /></p>

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