Report of Independent Auditors


To the Shareholders and Board of Trustees of
Van Eck Funds

In planning and performing our audit of the financial  statements of the Van Eck
Funds  (comprising  Asia Dynasty Fund,  Global Hard Assets Fund,  Global Leaders
Fund,  International  Investors Gold Fund, Troika Dialog Fund (formerly Emerging
Markets Vision Fund) and U.S. Government Money Fund) for the year ended December
31, 2001, we considered its internal control,  including control  activities for
safeguarding  securities,  in order to determine our auditing procedures for the
purpose of expressing our opinion on the financial statements and to comply with
the  requirements of Form N-SAR, not to provide  assurance on internal  control.
However,  we noted certain matters involving  internal control and its operation
that we consider to be reportable  conditions under standards established by the
American  Institute  of  Certified  Public  Accountants.  Reportable  conditions
involve matters coming to our attention relating to significant  deficiencies in
the design or  operation  of  internal  control  that,  in our  judgment,  could
adversely affect the Van Eck Funds' ability to record, process,  summarize,  and
report  financial  data  consistent  with the  assertions  of  management in the
financial statements.

A material  weakness is a reportable  condition in which the design or operation
of one  or  more  of the  internal  control  components  does  not  reduce  to a
relatively  low level the risk  that  misstatements  caused by error or fraud in
amounts  that would be material in relation to the  financial  statements  being
audited may occur and not be detected within a timely period by employees in the
normal course of performing their assigned functions.

The  management  of the  Van Eck  Funds  is  responsible  for  establishing  and
maintaining internal control. In fulfilling this  responsibility,  estimates and
judgments by management are required to assess the expected benefits and related
costs of controls.  Generally, controls that are relevant to an audit pertain to
the entity's objective of preparing  financial  statements for external purposes
that are fairly  presented in  conformity  with  generally  accepted  accounting
principles.   Those  controls   include  the   safeguarding  of  assets  against
unauthorized acquisition, use or disposition.

Because of inherent  limitations in internal  control,  error or fraud may occur
and not be detected.  Also,  projection of any evaluation of internal control to
future periods is subject to the risk that it may become  inadequate  because of
changes in conditions or that the  effectiveness of the design and operation may
deteriorate.

Our consideration of internal control would not necessarily disclose all matters
in internal control that might be reportable conditions and, accordingly,  would
not necessarily  disclose all reportable  conditions that are also considered to
be material weaknesses as defined above. However, we noted the following matters
involving  internal  control and its  operation  that we consider to be material
weaknesses  as defined  above.  These  conditions,  which are  discussed  in the
following  paragraph,  were  considered in determining the nature,  timing,  and
extent of procedures  to be performed in our audits of the financial  statements
of the Van Eck Funds for the year ended  December 31, 2001, and this report does
not affect our report thereon dated February 21, 2002.

In accordance with the fair valuation  methodology adopted by the Van Eck Funds'
Board of Trustees,  management  of the Van Eck Asia Dynasty Fund and the Van Eck
International  Investors Gold Fund (the "Funds") may adjust the previous closing
prices for  securities  that are traded in markets  that close  before 4:00 p.m.
Eastern Time to reflect what  management  believes to be the fair value of these
securities as of 4:00 p.m.  Eastern Time.  Such fair valuation of securities may
occur when management  determines that developments that occur between the close
of the foreign market and 4:00 p.m.  Eastern Time are so  significant  that they
materially  affect the  Funds' Net Asset  Value  ("NAV").  The Funds'  portfolio
administration did not consistently apply,  document,  and review the prescribed
fair  valuation   methodology  for  such  foreign  securities.   Proper  control
procedures are necessary to ensure that fair values are accurately  reflected in
the Funds'  portfolios of investments  and that  subscriptions  and  redemptions
occur at the appropriate  NAV.  Subsequent to December 31, 2001,  management has
modified  its  policies  and  procedures  with  respect  to the  fair  valuation
methodology for foreign securities.

This report is intended solely for the  information  and use of management,  the
shareholders,  the Board of  Trustees  of Van Eck Funds and the  Securities  and
Exchange  Commission  and is not intended to be and should not be used by anyone
other than these specified parties.




                                                               ERNST & YOUNG LLP


February 21, 2002