Gyroscopic Investing

Since PRPFX is so big (total net assets $17.4 billion), if a large proportion of PRPFX holders start selling because, say, gold or the Swiss Franc is tanking, wouldn't that also results in a large sell off of the individual stocks in PRPFX which could cause the stocks in PRPFX to perform much worse than the general stock market?

Relative to the scopes of these markets........ US stocks, US Treasuries, Swiss Franc, Gold, PRPFX is a drop in the bucket. 

It's not moving the market over the long term

Jedi, I believe a more significant concern would be the tax efficiency of PRPFX if there was a massive sell off.

6 Iron wrote: Jedi, I believe a more significant concern would be the tax efficiency of PRPFX if there was a massive sell off.

Yes. I would be more worried about how they'd handle mass redemptions. The stocks are going to sell for what the market prices them. PRPFX isn't big enough by itself to have an serious impact.

Is the silver market small enough that it gets moved by expansion/redemption of PRPFX?

stone wrote: Is the silver market small enough that it gets moved by expansion/redemption of PRPFX?

I doubt it.

The ETF SLV looks to have about $10 billion in assets, compared to PRPFX's $850 million in silver (5% of $17 billion), so PRPFX doesn't hold that much silver even compared to other funds that hold silver.