Having been burned by UNG, I've been reading up on these types of ETF's, and also doing research on ETN's (exchange traded notes). It's true that if the price gets "too low" it could reverse split (such as some of the triple inverse ETF's), but that does no good for anyone who was in the ETF before the split. Another point worth mentioning is many of these ETF's have what's called "creation units" allowing the issuer to basically create more shares through derivatives. Here's another article to check out: http://seekingalpha.com/article/141517-why-etfs-are-a-scam Although the risk disclosures are listed in the prospectus, it's still "buyer beware" when it comes to certain ETF's.
We are in a 10 yr+ depression, so all commodities will go lower soon or later. There's no demand. Nat gas started its decline, soon oil will follow. Speculation can't be departed from supply/demand forever.
There are huge stores of natural gas, even so if Pickens proposals should get incorporated into a comprehensive U.S. energy plan, there could be a very nice bounce indeed. (Even speculation on the Pickens proposal could give a boost.) The Pickens proposal makes sense. Whether or not the U.S. ever develops a comprehensive energy plan that incorporates it , is anyone's guess. Didn't Obama campaign on development of a national energy plan as part of his platform?