RE: Sprott Securities
Well, the dark side of mutual funds as shareholders is it doesn't matter what the managers believe if they have redemptions forced on them, they have to sell across their portfolio to keep their investment balance.
There is lots of media hype to unwind the gold safety trade and buy the blue chip index - the VIX is almost at its 52 week low down from the high 40's range to the 15's. So Joe investor looks at his portfolio and books out profits on his precious metals funds that were his star for 2010 and rushes in where angels fear to tread. Stocks are cheap and happy days are here again.
I wouldn't do it, but the VIX does reflect current sentiment. So does Sprott get redemptions? I'd suspect they do. So they hit the sell button no matter what they think of the wisdom of it.
Just means the window is open longer for you and me to fill our boots ... except mine are already full.
CG