First Quarter 2021 Commentary

Established a new position during the quarter, the largest purchase of the period. Gold prices have struggled in 2021 despite rising inflation expectations; the fund views gold as an inflation hedge and disagrees with investors selling due to rising interest rates.

“During the last three months, we established positions in the Sprott Physical Gold Trust (ticker: PHYS), SSR Mining (ticker: SSRM), Carters (ticker: CRI), and WH Group (ticker: WHGLY). Our largest purchase was the Sprott Physical Gold Trust. Gold prices have struggled in 2021 despite an increase in inflation expectations and continued gains for other assets investors deem inflation hedges. While some investors are selling gold due to rising interest rates, they may be ignoring the possibility that increasing rates are telegraphing higher inflation as opposed to sustainable economic growth.”