This fund will take it on the chin today and in the months and years to come. The gold run is over IMHO. It is and never has been a safe habor. Why hold something that pays no dividends, has no earnings and is sheer speculation (the greater fool theory). The last 10 years have been good to this fund due to it's holdings in gold and silver but the end for that is near IMHO. 200 day moving average has been broken to the downside on gold...who knows where the bottom is. I sold in the mid 49's. Won't be back for awhile...sitting in cash and muni's now.
All the reasons you cite for not liking gold are, excuse my bluntness, stupid. Gold doesn't pay a dividend? You mean like the average stock which pays 2%? Gold is up 500% in ten years, that's simple 50% a year. I think that beats the 2% hurdle pretty easily. No earnings, same story. Sheer speculation, hardly. Sheer speculation is hoping against hope that your stocks and bonds continue to hold up as the dollar, currency they're denominated in(USD), and businesses hold up. Gold is money, plain and simple and has been for thousands of years. Greater fools are people that can't quite understand these dynamics(in fact, have them backwards), since they have been brainwashed by Wall Street for most of their adult lives into believing the hype about stocks and bonds. Until people like you are bragging about how much gold they own, there is no bubble in gold in sight.
Also, why buy this fund and deal with all of the issues associated with it (manager, high expenses, no long term bonds, etc.) Should look into the 4 x 25...much better diversified portfolio with much lower volatility.
BTW, if you do feel this way about "QE3" why not take appropriate action and buy the asset classes that would do well in that environment? Buy and die...is dead.
Don't know. Compare this to UUP, a dollar bull ETF. It's pretty much an upside-down image graph to PRPFX. So PRPFX appears to be a hedge against a declining dollar. Does that meet the charter of PRPFX, to protect purchasing power? Not sure. If the dollar continues to rally, it seems that PRPFX will decline. What an interesting quandary. Hold equal amounts of UUP and PRPFX? (UUP doesn't pay any dividends, but we are talking about protecting purchasing power of investments over time.)
FWIW, long Treasurys (e.g., BTTRX, TLT, EDV) also tend to inverse-mirror PRPFX, but with a lot more "juice".