Issue No. 226
February 24, 2013

The gold and resource funds are getting hit with redemptions, some pretty heavily, and I hear Franklin, Van Eck, Dynamic, Sprott, Beaupost, US Global, etc., are selling what they can, not what they want. Most are fully invested and have little flexibility when redemptions hit (unless they have shorts). The funds have invested a great deal into developing gold stories like Lydian (-25%), Colossus (-24%), Belo Sun (-29%), Torex (-16%), Pretium (-26%), and Rainy River (-30%) among others, and are now selling out to a rapidly diminishing number of interested investors.