Put simply, the situation got a little too bloody, even for him. In a statement to CEO.ca, he explains, "[t]he last days for precious metals miners have been just shocking. The most important gold and silver miner indices and ETFs broke their support lines and hit new multi-year lows." He goes on to state, "I had to liquidate the whole portfolio today to protect my subscribers, which is my responsibility. The market letter is owned by the publishing house and they have special risk and money management rules. The losses during the last weeks were so big for many subscribers that I was forced to react, which lead to complete, temporary liquidation of all stocks in the market letter."He concludes, "I plan to buy gold miners again when the dust has settled and we see something like a bottom and a bottom-building process. At the moment, I have to deal with the potential for further blood baths as I can't see lights in the end of the tunnel yet." What's an investor to do? In tough markets, investment gurus like to point to poor prices as an opportunity to buy good-quality companies at a bargain. Case in point: Rick Rule, chairman of Sprott US Holdings, told Mineweb just last week, "if we get a capitulation sell-off my suspicion is that ... it will be for the real dross, the juniors, the best remaining buying opportunity of my career." However, that's not particularly useful advice for investors who have gotten in at the top and are now losing money. So what's an investor to do? Interestingly, Gross provides a good suggestion in his Gold Report interview: "investors must stick to best-in-class stories and must demonstrate constancy and patience." Though that's certainly not what he did, it's a strategy that might work for investors with a little more grit — or without newsletter subscribers to answer to.
Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article. Related reading: Continental Gold is Down 28 Percent — What Happened? When the Streets Get Too Bloody: Oliver Gross Dumps Gold Stocks from Gold Investing News