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Strategies & Market Trends : The coming US dollar crisis -- Ignore unavailable to you. Want to Upgrade?

To: Real Man who wrote (9212)	6/23/2008 7:19:14 PM
From: Paul Kern	Respond to of 71475

Recently, a friend shared a noteworthy statistic: An oil exchange-traded fund is among the most heavily shorted ETFs in existence. In the first five months of this year, as oil rose 33%, the short interest soared 140%. Parenthetically, I might point out that another heavily shorted ETF happens to be SPDR Gold Shares (GLD, news, msgs). <\i> Lies and damned lies. United States Oil Fund LP $ 111.00 USO 1.86 Short Interest (Shares Short) 18,294,400 Days To Cover (Short Interest Ratio) 1.2 Short Percent of Float % Short Interest - Prior 16,259,400 Short % Increase / Decrease 12.52 % Short Squeeze Ranking™ shortsqueeze.com

To: Real Man who wrote (9212)	6/23/2008 7:44:04 PM
From: RockyBalboa	Respond to of 71475

I wouldn´t read too much into the short interest of an ETF: it can be part of a tax efficient strategy or even a transient feature (there are more buy and hold investors into the ETFs than ETF shares are in issue). Shares can be issued in "baskets" of 100k against delivery of gold, or also redeemed. Tax efficient would mean to avoid realising short term gains by selling a Gold or Crude futures position; but by hedging with the ETF. GLD: As of May 7, 2008 the Registrant had 190,400,000 shares outstanding. Authorized share capital is unlimited and shares par value is $0.00. Shares issued and outstanding at March 31, 2008 are 209,100,000 and at September 30, 2007, 187,900,000. ................. 2.3. Creations and Redemptions of Shares The Trust will create and redeem Shares from time to time, but only in one or more Baskets (a Basket equals a block of 100,000 Shares). The Trust issues Shares in Baskets to certain authorized participants (‘‘Authorized Participants’’) on an ongoing basis. The creation and redemption of Baskets will only be made in exchange for the delivery to the Trust or the distribution by the Trust of the amount of gold and any cash represented by the Baskets being created or redeemed, the amount of which will be based on the combined net asset value of the number of Shares included in the Baskets being created or redeemed determined on the day the order to create or redeem Baskets is properly received. ................... A market participant who is short the shares can cover the shares by delivering gold to the Trust and receiving shares to close his position. So it is a way to sell gold.