SmartMoney asks David Nadel "Which Way Is Gold Heading?"

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The thoughts expressed here are solely those of the person speaking and may differ from those of other Royce investment professionals, or the firm as a whole. There can be no assurance with regard to future market movements.

This material is not authorized for distribution unless preceded or accompanied by a current prospectus. Please read the prospectus carefully before investing or sending money. The Fund may invest a significant portion of its assets in foreign companies which may be subject to different risks than investments in securities of U.S. companies, including adverse political, social, economic or other developments that are unique to a particular country or region. (Please see "Investing in Foreign Securities" in the prospectus) Therefore, the prices of the securities of foreign companies in particular countries or regions may, at times, move in a different direction than those of the securities of U.S. companies. (Please see "Primary Risks for Fund Investors" in the prospectus).

None of The Royce Funds may invest directly in gold bullion. Investments in gold mining and other precious metals companies can be significantly affected by international economic, monetary and political developments, inflation, and other factors. In recent years, certain series of The Royce Fund have had relatively significant levels of investment in the securities of precious metals and mining companies, including gold mining companies.

As of September 30, 2011, the following Funds had relatively significant investments in the metals and mining industry, as follows: Royce Focus Trust, 24.2%,; Royce Focus Value Fund, 22.7%; Royce SMid-Cap Value Fund, 19.2%; Royce Low-Priced Stock Fund, 18.5%; Royce Global Value Fund, 17.9%; ; Royce Value Fund, 16.1%; Royce Mid-Cap Fund, 13.3%; Royce Value Plus Fund, 12.9%; Royce Global Select Fund, 12.1%; Royce Micro-Cap Fund, 11.4%; Royce Capital Fund - Micro-Cap Portfolio, 11.3%; Royce Opportunity Select Fund, 10.5%; Royce International Micro-Cap Fund, 10.1%; Royce International Premier Fund, 9.84%; Royce International Smaller-Companies Fund, 9.5%; Royce Select Fund II, 9.3%; Royce Premier Fund, 8.1%; Royce Select Fund I, 8.0%; Royce 100 Fund, 7.6%; Royce Heritage Fund, 7.0%; Royce European Smaller-Companies Fund, 6.9%; Royce Discovery Fund, 6.8%, Royce Value Trust, 6.5%; and Royce Global Dividend Value Fund, 5.3%.

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