gold wars a golden renaissance presentation september 2010
TRANSCRIPT
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8/8/2019 Gold Wars a Golden Renaissance Presentation September 2010
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A Tribute to Ferdinand Lips (1931 2005)
A Golden Renaissance
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All material is compiled from sources believed to be accurate, but no accuracy can be guaranteed.The presentation is for information purposes only and is not a solicitation to invest.Unauthorized reproduction or distribution is strictly prohibited.
The Mining Journal Investor SeminarsDate: 07/09/10
What are Gold Wars?
Gold Wars are between governments and gold. This ultimately
restricts the constitutional rights of the people.
Gold is the vital barometer of the health of a nations currency.The suppression of gold by government allows them to maskthe mismanagement of their currency.
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DOLLAR PURCHASING POWER PARITY BASIS
0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
Jan-50
Jan-53
Jan-56
Jan-59
Jan-62
Jan-65
Jan-68
Jan-71
Jan-74
Jan-77
Jan-80
Jan-83
Jan-86
Jan-89
Jan-92
Jan-95
Jan-98
Jan-01
Jan-04
Jan-07
Jan-10
All material is compiled from sources believed to be accurate, but no accuracy can be guaranteed.The presentation is for information purposes only and is not a solicitation to invest.Unauthorized reproduction or distribution is strictly prohibited.
The Mining Journal Investor SeminarsDate: 07/09/10
Monetary PollutionThe dollars purchasing power has been trashed in the post-war period. One dollar can buyyou less than one ninth of what it could have in 1950.
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0%
-200%
-400%
-600%
-800%
-1000%
-1200%
-1400%
-1600%
-1800%
Sources: EU Commission, Eurostat, CBO, IMF, Morgan Stanley Research
Ita
ly
Germa
ny
France
Portug
al
US
A
U
K
Spa
in
Ireland
Gree
ce
400%
200%
Cost of ageing
Structural deficit
Initial debt level
TOTAL DEBT & LIABILITIES AS % OF GDP
All material is compiled from sources believed to be accurate, but no accuracy can be guaranteed.The presentation is for information purposes only and is not a solicitation to invest.Unauthorized reproduction or distribution is strictly prohibited.
The Mining Journal Investor SeminarsDate: 07/09/10
Global debt MountainTodays system of paper money is still very young. It depends solely on the belief that thedebts upon which it is based will be repaid someday.
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All material is compiled from sources believed to be accurate, but no accuracy can be guaranteed.The presentation is for information purposes only and is not a solicitation to invest.Unauthorized reproduction or distribution is strictly prohibited.
The Mining Journal Investor SeminarsDate: 07/09/10
Ferdinand liPs (1931 - 2005)
Gold Ferdi, the Pope of Gold, Karl Otto Pohl, former Head of the Bundesbank
Hes back but arguably he never left us as his lifes work lives on through the Lips Institutewww.lips-institute.ch
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All material is compiled from sources believed to be accurate, but no accuracy can be guaranteed.The presentation is for information purposes only and is not a solicitation to invest.Unauthorized reproduction or distribution is strictly prohibited.
The Mining Journal Investor SeminarsDate: 07/09/10
Gold Wars
Gold Wars are between governments and gold.
This ultimately restricts the constitutional rights of the people.
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All material is compiled from sources believed to be accurate, but no accuracy can be guaranteed.The presentation is for information purposes only and is not a solicitation to invest.Unauthorized reproduction or distribution is strictly prohibited.
The Mining Journal Investor SeminarsDate: 07/09/10
Gold Wars oF the 20th& 21st Centuries
1.The Classical Gold Standard is abandoned in 1914
2.The Genoa Gold Standard 1922
3.Great Depression of 1930s Exchange Stabilization Fund, Gold Reserve Act 1934
4.Bretton Woods 1944 Gold Exchange Standard
5.Collapse of the London Gold Pool 1960s and 70s
6.Stagation of 1970s and US Treasury and IMF Gold Sales
7.The Failure of the Second London Gold Pool of 1990s and 2000s?
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All material is compiled from sources believed to be accurate, but no accuracy can be guaranteed.The presentation is for information purposes only and is not a solicitation to invest.Unauthorized reproduction or distribution is strictly prohibited.
The Mining Journal Investor SeminarsDate: 07/09/10
the london Gold Pool 1960 68
$35.50
$36
$35.25
$35.20
$35.15
$35.10
$35.05
$35.00
$34.95
$34.90
$34.85
21,000
Source: Financial Graph & Art
19,000
17,000
15,000
13,000
11,000
9,000
1968
1966
1964
1962
1960
1958
1956
1954
The Gold Price was fixed at $35 a troy ounce
$37
$38
London Goldmarket reopened
London Gold Pool established
Berlin Crisis
The London Gold Pool is dismantled
Cuban Missile Crisis
Six day war
Gulf of Tonkin Incident
De Gaulles gold speech
First official US combat troopsarrive in Vietnam
France leaves the Gold Pool
British pound devalued 14%
Tet Offensive
October 1960 gold crisis begins
as gold breaks $35.20
Suez Canal nationalised
Suez Crisis France,Israel and Britain invade Egypt
1954 1968 Morning Fix, Left Axis,London Gold Market
US Gold Reserves
Yearly Tonnes, Right Axis
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All material is compiled from sources believed to be accurate, but no accuracy can be guaranteed.The presentation is for information purposes only and is not a solicitation to invest.Unauthorized reproduction or distribution is strictly prohibited.
The Mining Journal Investor SeminarsDate: 07/09/10
the tWo-tier Gold Market 1968
$34
1968
$36
$38Gold Pool dismantled,
price spikes up
1967-1971 Morning Fix - London Gold Market
South African goldboycott begins
South Africa sells goldfor foreign currency
Nixon endsgold convertability
Run on US dollar,deutche markallowed to float
$40
$42
$44
$46
1969 1970 1971
When the Gold Price was fixed at $35
1
4
3
5
6
2
South Africa acceptsUS compromise. London goldhits lowest level in history.
Source: Financial Graph & Art
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All material is compiled from sources believed to be accurate, but no accuracy can be guaranteed.The presentation is for information purposes only and is not a solicitation to invest.Unauthorized reproduction or distribution is strictly prohibited.
The Mining Journal Investor SeminarsDate: 07/09/10
Gold is undervalued
Price is the level at which one exchanges; value is whether
it is worth it. Nominal new price highs in gold do not signalan overvalued market.
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GOLD IN CURRENT DOLLARS
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
Mar-70
Mar-72
Mar-74
Mar-76
Mar-78
Mar-80
Mar-82
Mar-84
Mar-86
Mar-88
Mar-90
Mar-92
Mar-94
Mar-96
Mar-98
Mar-00
Mar-02
Mar-04
Mar-06
Mar-08
Mar-10
All material is compiled from sources believed to be accurate, but no accuracy can be guaranteed.The presentation is for information purposes only and is not a solicitation to invest.Unauthorized reproduction or distribution is strictly prohibited.
The Mining Journal Investor SeminarsDate: 07/09/10
Gold in real dollars is stillvery undervalued
Gold in current dollar terms is still 30% off the high it reached in 1980. Re-basing,hedonistic adjustments, etc have lowered the CPI levels and with it the true value of goldadjusted for ination.
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All material is compiled from sources believed to be accurate, but no accuracy can be guaranteed.The presentation is for information purposes only and is not a solicitation to invest.Unauthorized reproduction or distribution is strictly prohibited.
The Mining Journal Investor SeminarsDate: 07/09/10
Gold is undervaluedin CurrenCy terMs
The ofcial gold reserve in banks throughout 1930s to 1950s was 40% but in reality was muchhigher. Even to achieve this backing, assuming current gold supply, the price of gold will haveto rise by three to four times.
191
5
192
0
192
5
193
0
193
5
194
0
194
5
195
0
195
5
196
0
196
5
197
0
197
5
198
0
198
5
199
0
199
5
200
0
200
5
201
0
150%
125%
100%100% Gold-Backed
75%
50%
25%
0%
Sources: U.S. Federal Reserve / World Gold Coun cil
GOLD BACKING OF THE U.S. MONETARY BASE
(CURRENCY IN CIRCULATION + BANK RESERVE CASH)
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CRB/S&P RATIO
0
0.5
1
1.5
2
2.5
3
3.5
4
Oct-57
Oct-60
Oct-63
Oct-66
Oct-69
Oct-72
Oct-75
Oct-78
Oct-81
Oct-84
Oct-87
Oct-90
Oct-93
Oct-96
Oct-99
Oct-02
Oct-05
Oct-08
All material is compiled from sources believed to be accurate, but no accuracy can be guaranteed.The presentation is for information purposes only and is not a solicitation to invest.Unauthorized reproduction or distribution is strictly prohibited.
The Mining Journal Investor SeminarsDate: 07/09/10
CoMModities are undervaluedrelative to us equities
Commodities as a whole are very cheap compared to equities. At Hinde we believe commoditieswill rise as currency creation competes with supply constraints. This will be gold positive.
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GOLD RELATIVE TO S&P 500
0
100
200
300
400
500
600
Oct-70
Oct-72
Oct-74
Oct-76
Oct-78
Oct-80
Oct-82
Oct-84
Oct-86
Oct-88
Oct-90
Oct-92
Oct-94
Oct-96
Oct-98
Oct-00
Oct-02
Oct-04
Oct-06
Oct-08
Gold/S&P
All material is compiled from sources believed to be accurate, but no accuracy can be guaranteed.The presentation is for information purposes only and is not a solicitation to invest.Unauthorized reproduction or distribution is strictly prohibited.
The Mining Journal Investor SeminarsDate: 07/09/10
Gold is undervalued versusus equities
Gold vs S&P would have go up six times to match the 1980 highs.
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GOLD RELATIVE TO S&P 500
0
100
200
300
400
500
600
Oct-7
0
Oct-7
2
Oct-7
4
Oct-7
6
Oct-7
8
Oct-8
0
Oct-8
2
Oct-8
4
Oct-8
6
Oct-8
8
Oct-9
0
Oct-9
2
Oct-9
4
Oct-9
6
Oct-9
8
Oct-0
0
Oct-0
2
Oct-0
4
Oct-0
6
Oct-0
8
0
100
200
300
400
500
600
Gold/S&P
Gold/Total Return S&P
All material is compiled from sources believed to be accurate, but no accuracy can be guaranteed.The presentation is for information purposes only and is not a solicitation to invest.Unauthorized reproduction or distribution is strictly prohibited.
The Mining Journal Investor SeminarsDate: 07/09/10
Gold is undervalued versusus equities
Even more so on a total return basis:
The Gold v S&P ratio is currently one fth
of the high it reached in the early 1980s.Gold v Total Return S&P, however,is standing at only one twelfth the peak
it reached in 1980.
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All material is compiled from sources believed to be accurate, but no accuracy can be guaranteed.The presentation is for information purposes only and is not a solicitation to invest.Unauthorized reproduction or distribution is strictly prohibited.
The Mining Journal Investor SeminarsDate: 07/09/10
Gold undervalued butoutPerForMinG all asset Classes
Over the last twenty years, gold has outperformed all major asset classes on many time horizons.
GOLD V MAJOR ASSETS
-50%
0%
50%
100%
150%
200%
250%
300%
350%
1y Return 5yr Return 10y Return 15y Return 20y Return
10y US Treasury (total return*) (*from 1994)
S&P 500
MSCI World
CRB Index
Gold (USD)
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All material is compiled from sources believed to be accurate, but no accuracy can be guaranteed.The presentation is for information purposes only and is not a solicitation to invest.Unauthorized reproduction or distribution is strictly prohibited.
The Mining Journal Investor SeminarsDate: 07/09/10
Gold is underoWned
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PERCENTAGE OF RESERVE ASSETS IN GOLD
87.9%
78.5% 78.4%75.2%
12.6%
8.1%
3.0% 1.7% 0.5%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
US
France
Germany
Netherlands
World
India
SaudiArabia
China
Brazil
All material is compiled from sources believed to be accurate, but no accuracy can be guaranteed.The presentation is for information purposes only and is not a solicitation to invest.Unauthorized reproduction or distribution is strictly prohibited.
The Mining Journal Investor SeminarsDate: 07/09/10
Most Central bankshold little Gold
Emerging market central banks hold very little gold. Their primary holdings are in USTreasuries. The scope for gold allocation in emerging markets is huge.
Source: IMF
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2009
2007
2005
2003
2001
1999
1997
1995
1993
1991
1989
1987
1985
1983
1981
1979
1977
1975
1973
1971
1969
1967
1965
1963
1961
1959
1957
1955
1953
1951
-40
-30
-20
-10
0
10
20
MILLION
OUNCES
NET CENTRAL BANK SALES
All material is compiled from sources believed to be accurate, but no accuracy can be guaranteed.The presentation is for information purposes only and is not a solicitation to invest.Unauthorized reproduction or distribution is strictly prohibited.
The Mining Journal Investor SeminarsDate: 07/09/10
Most Central banksnoW love Gold
For the rst time in forty years, central banks are beginning to buy more gold. China, Russia,India and Sri Lanka and others are now buyers on any weakness in the gold price.
1972
1974
1976
1978
1980
1982
1984
1986
1988
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
70
60
50
40
30
20
10
%
CENTRAL BANK % RESERVES IN GOLD SINCE 1970
Source: IMF Source: IMF
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CENTRAL BANK HOLDINGS OF GOLD IN MM TROY OUNCES
950
1,000
1,050
1,100
1,150
1,200
Oct-70
Oct-72
Oct-74
Oct-76
Oct-78
Oct-80
Oct-82
Oct-84
Oct-86
Oct-88
Oct-90
Oct-92
Oct-94
Oct-96
Oct-98
Oct-00
Oct-02
Oct-04
Oct-06
Oct-08
All material is compiled from sources believed to be accurate, but no accuracy can be guaranteed.The presentation is for information purposes only and is not a solicitation to invest.Unauthorized reproduction or distribution is strictly prohibited.
The Mining Journal Investor SeminarsDate: 07/09/10
PaPer CurrenCy dWarFsGold aCCuMulation
Central banks are net buyers. But as fast as they might buy their paper currency reserveskeep growing faster. Russia has bought over 220 tonnes of gold between 2000 to 2010.In 2000 the ratio of Russian gold holdings to their currency was 24.6%; now it is 5.1%.
BILLION $
8000
7000
6000
5000
4000
3000
2000
1000
1973
1976
1979
1982
1985
1988
1991
1994
1997
2000
2003
2006
2009
CENTRAL BANK TOTAL INTERNATIONAL RESERVES $ VALUE
Source: IMF Source: IMF
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All material is compiled from sources believed to be accurate, but no accuracy can be guaranteed.The presentation is for information purposes only and is not a solicitation to invest.Unauthorized reproduction or distribution is strictly prohibited.
The Mining Journal Investor SeminarsDate: 07/09/10
buy What China is buyinG: ChinaGold & silver liberalisation
The dening moment for the War on Gold? August 2010 will be the time we look back and saythat was when the war was potentially won. Chinas PBoC announced to further develop thegold market. This country has a serious afnity for gold.
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All material is compiled from sources believed to be accurate, but no accuracy can be guaranteed.The presentation is for information purposes only and is not a solicitation to invest.Unauthorized reproduction or distribution is strictly prohibited.
The Mining Journal Investor SeminarsDate: 07/09/10
CurrenCy reForM yuan liberalisation
China has so far been accumulating mainly dollar assets rather than gold as its reservesballoon. The potential free oat of the Yuan paves the way towards currency reform withRussia et al.
CHINA: FX RESERVES AND GOLD AS A % OF RESERVES
0
500
1,000
1,500
2,000
2,500
3,000
Oct-96
Oct-97
Oct-98
Oct-99
Oct-00
Oct-01
Oct-02
Oct-03
Oct-04
Oct-05
Oct-06
Oct-07
Oct-08
Oct-09
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
4.0%
4.5%
5.0%
Gold as a %
FX Reserves, $ mns
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All material is compiled from sources believed to be accurate, but no accuracy can be guaranteed.The presentation is for information purposes only and is not a solicitation to invest.Unauthorized reproduction or distribution is strictly prohibited.
The Mining Journal Investor SeminarsDate: 07/09/10
briCs advoCate CurrenCy reForM
January 2009 Russian leader Mr Putin said the leading powers should ensure an irreversiblemove toward a system of multiple reserve currencies, questioning the reliability of the US dollaras a safe store of value. The pride of Wall Street investment banks doesnt exist anymore,
March 2009 PBoC Governor Zhou calls for new reserve currency that is disconnectedfrom individual nations and is able to remain stable in the long run, thus removing the inherentdeciencies caused by using credit-based national currencies.
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All material is compiled from sources believed to be accurate, but no accuracy can be guaranteed.The presentation is for information purposes only and is not a solicitation to invest.Unauthorized reproduction or distribution is strictly prohibited.
The Mining Journal Investor SeminarsDate: 07/09/10
Golden deMoGraPhiCs: eMerGinGMarket oWnershiP is loW
Its not just emerging central banks that are underinvested. On a per capita basis,China and India own much less than many other countries, as well as below the world average.This is noteworthy for two gold loving countries.
GOLD DEMAND (GRAMS PER CAPITA)
0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
5
SaudiArabia
Turkey
HongKong
Germany
Vietnam
Egypt
US
Italy
Thailand
Russia
UK
India
SouthKorea
World
Taiwan
China
Indonesia
Japan
France
China still hugely underowns gold.It owns much less on a per capita
basis than several other countries,and also owns less than theworld average.
Source: UN, WGC
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All material is compiled from sources believed to be accurate, but no accuracy can be guaranteed.The presentation is for information purposes only and is not a solicitation to invest.Unauthorized reproduction or distribution is strictly prohibited.
The Mining Journal Investor SeminarsDate: 07/09/10
Gold investMentis inFinitesiMal
Imagine the impact of a shift out of bond markets into Gold
INVESTM
ENT
G
OLD
MARKETVA
LUE
OFALLG
OLD
GLOBALMO
NEY
SUPPLY
(M3)
FINANCIAL
ASS
ETS
50
100
150
TRILLION $
0.8 5.0
60.2
200.0
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All material is compiled from sources believed to be accurate, but no accuracy can be guaranteed.The presentation is for information purposes only and is not a solicitation to invest.Unauthorized reproduction or distribution is strictly prohibited.
The Mining Journal Investor SeminarsDate: 07/09/10
Gold investMenthistoriCally Minute
In 1932 the allocation of gold relative to global nancial investments was 20%. Today it standsat 0.8%. To rise to 2% would require 85,000 tonnes, approximately 34 years mine supplyat existing rates.
GOLD + GOLD MINING EQUITIES AS A % OF GLOBAL ASSETS
0%
5%
10%
15%
20%
25%
30%
35%
1921 1932 1948 1981 2009
Source: Erste Bank
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All material is compiled from sources believed to be accurate, but no accuracy can be guaranteed.The presentation is for information purposes only and is not a solicitation to invest.Unauthorized reproduction or distribution is strictly prohibited.
The Mining Journal Investor SeminarsDate: 07/09/10
Gold underoWned and FallinGsuPPly, reserve Grade
So much demand but not so much supply. There have been less than 5 gold discoveries over10mm troy oz. this past decade. Barrick needs to replace 9mm troy oz. of production a year.
12%
9%
6%
3%
0%
-3%
-6% 1000
1500
2000
2500
Tonnes
1987
Mine Supply Mine Supply
Source: World Gold Council, UBS
GOLD MINE SUPPLY HEADING DOWN
1990 1993 1996 1999 2002 2005 2008 2011E Cash cost
Total costs
Reserve grade
750 1.8
1.7
1.6
1.5
1.4
1.3
1.2
1.1
1
650
550
450
350
250
150
GLOBAL MINE COSTS AND RESERVE GRADE g/t
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
1996
1995
1994
1993
1992
CostsUS$/o
z
ReserveGrade
g/t
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All material is compiled from sources believed to be accurate, but no accuracy can be guaranteed.The presentation is for information purposes only and is not a solicitation to invest.Unauthorized reproduction or distribution is strictly prohibited.
The Mining Journal Investor SeminarsDate: 07/09/10
the Final battle?
In order to improve your game, you must study the endgame
before everything else, for whereas the endings can bestudied and mastered by themselves, the middle game andthe opening must be studied in relation to the endgame
Jose Raul Capablanca
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All material is compiled from sources believed to be accurate, but no accuracy can be guaranteed.The presentation is for information purposes only and is not a solicitation to invest.Unauthorized reproduction or distribution is strictly prohibited.
The Mining Journal Investor SeminarsDate: 07/09/10
Gold shorts under PressureA series of actions have perhaps uncovered the distressed nature of the short perpetratorsin the precious metals market.
Mysterious BIS Gold Swaps July 2010 380 tonnes of gold is swapped between BIS and unnamed commercial bank FT and WSJ post conicting commentary from BIS themselves on counterparties involved
CFTC Hearings March 2010 Precious Metals trader blows whistle on manipulation of Comex market Comex commercial bank short positions have been reducing as investigation mounts
IMF Quietly Selling Gold 15 tonnes a month for rst half of 2010
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Cum.
OvernightChange$/
oz
Cum.
IntradayChange$/o
z
1600
1400
1200
1000
800
600
400
200
0
100
0
-100
-200
-300
-400
-500
-600
1/1/2001
Overnight
Intraday
9/28/2003 6/24/2006 3/20/2009 12/15/2011
Source: Adrian Douglas, www.marketforceanalysis.com
CUMULATIVE INTRADAY CHANGE AND CUMULATIVE
OVERNIGHT CHANGE IN GOLD 2 001-2010
All material is compiled from sources believed to be accurate, but no accuracy can be guaranteed.The presentation is for information purposes only and is not a solicitation to invest.Unauthorized reproduction or distribution is strictly prohibited.
The Mining Journal Investor SeminarsDate: 07/09/10
Failure oF the seCond londonGold Pool 2000 to ?
Physical Gold dumped into the PM Fix to contain its price in a covert version of the 1960sLondon Gold Pool. Selling at PM x and purchasing at the AM x for last nine yrs returnsUS$1,400 per troy ounce.
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JULY
70
2X
4X
6X
8X
10X
12X
14X
16X
JAN7
1
JULY
71
JAN7
2
JULY
72
JAN7
3
JULY
73
JAN7
4
JULY
74
JAN7
5
JULY
75
JAN7
6
JULY
76
JAN7
7
JULY
77
JAN7
8
JULY
78
JAN7
9
JULY
79
JAN8
0
JULY
80
JAN8
1
JULY
81
1971 Nixon closes
Gold Window Are we here?
1999-PRESENT1970-1980
GOLD REBASED FOR COMPARISON 1970-1980 AN D 1999 TO PRESENT GOLD IN NOMINAL $S FROM 1970-1980AND FROM 1999 TO PRESENT
1201141081029690847872666054484236302418126
Months from Jan 1970, Jan 1999 resp.
-100
100
300
500
700
900
1100
1300
1500
1700
1900
1970-1980
1999-Present
All material is compiled from sources believed to be accurate, but no accuracy can be guaranteed.The presentation is for information purposes only and is not a solicitation to invest.Unauthorized reproduction or distribution is strictly prohibited.
The Mining Journal Investor SeminarsDate: 07/09/10
Gold Where are We noW?Gold went up considerably more in the 70s compared to the last decade.
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All material is compiled from sources believed to be accurate, but no accuracy can be guaranteed.The presentation is for information purposes only and is not a solicitation to invest.Unauthorized reproduction or distribution is strictly prohibited.
The Mining Journal Investor SeminarsDate: 07/09/10
hinde CaPital
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All material is compiled from sources believed to be accurate, but no accuracy can be guaranteed.The presentation is for information purposes only and is not a solicitation to invest.Unauthorized reproduction or distribution is strictly prohibited.
The Mining Journal Investor SeminarsDate: 07/09/10
hinde Gold Fund:a unique investMent
A long bias gold bullion fund with close adherence to USD spot gold price
A managed gold investment in three share classes EUR, GBP or USD
A potential return in excess of the spot gold price
A cheap method of owning physical allocated gold
A secure method of owning physical allocated gold
An investment in growing gold ounces vis a vis up to 25 % small cap mining holding
A liquid investment, no subscription or redemption fees, and same month dealing
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All material is compiled from sources believed to be accurate, but no accuracy can be guaranteed.The presentation is for information purposes only and is not a solicitation to invest.Unauthorized reproduction or distribution is strictly prohibited.
The Mining Journal Investor SeminarsDate: 07/09/10
Allocated Gold Bullion (stored at secure vaults in viable jurisdiction)
Unallocated Gold Bullion
Comex & Tocom Futures
(warning potential hotspot)
Physical Bullion ETFs
(warning hotspot)
Swaps & Derivatives
Other
Wealth Store
Default Risk
Safer
Increased Risk
hinde Gold Fund: a hiGhly seCureinvestMent
ETFs and other vehicles for gold investment have inherent risk investors may be unaware of.An investment should hedge out all possible credit risk. Hinde Gold Fund achieves this byinvesting in allocated gold held in a reputable Swiss Private Bank.
Default Risk
Wealth Store
Increased Risk
Safer
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All material is compiled from sources believed to be accurate, but no accuracy can be guaranteed.The presentation is for information purposes only and is not a solicitation to invest.Unauthorized reproduction or distribution is strictly prohibited.
The Mining Journal Investor SeminarsDate: 07/09/10
hinde CaPitalHinde Capitals structure ensures the rms operations are thoroughly audited and transparent.
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All material is compiled from sources believed to be accurate, but no accuracy can be guaranteed.The presentation is for information purposes only and is not a solicitation to invest.Unauthorized reproduction or distribution is strictly prohibited.
The Mining Journal Investor SeminarsDate: 07/09/10
hinde Gold FundHinde Gold Fund is a managed gold investment. It aims to outperform the gold price,while smoothing any downside volatility.
HGF RELATIVE PERFORMANCE: GOLD (LAST 12 MONTHS)
-7%
-2%
3%
8%
13%
18%
23%
28%
Sep-09
Oct-09
Nov-09
Dec-09
Jan-10
Feb-10
Mar-10
Apr-10
May-10
Jun-10
Jul-10
Aug-10
Monthly Relative Performance
Cumulative Relative Performance (RHS)
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All material is compiled from sources believed to be accurate, but no accuracy can be guaranteed.The presentation is for information purposes only and is not a solicitation to invest.Unauthorized reproduction or distribution is strictly prohibited.
The Mining Journal Investor SeminarsDate: 07/09/10
hinde Gold FundHinde Gold Fund has performed well against other assets since its inception.
HGF COMPARATIVE PERFORMANCE SINCE INCEPTION
40
60
80
100
120
140
160
Sep-07
Nov-07
Jan-08
Mar-08
May-08
Jul-08
Sep-08
Nov-08
Jan-09
Mar-09
May-09
Jul-09
Sep-09
Nov-09
Jan-10
Mar-10
May-10
Jul-10
Hinde Gold Fund
MSCI World
GDM
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All material is compiled from sources believed to be accurate, but no accuracy can be guaranteed.The presentation is for information purposes only and is not a solicitation to invest.Unauthorized reproduction or distribution is strictly prohibited.
The Mining Journal Investor SeminarsDate: 07/09/10
our Golden seCret to suCCess:a brilliant Ceo, CFo?
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All material is compiled from sources believed to be accurate, but no accuracy can be guaranteed.The presentation is for information purposes only and is not a solicitation to invest.Unauthorized reproduction or distribution is strictly prohibited.
The Mining Journal Investor SeminarsDate: 07/09/10
hinde CaPital:investMent ManaGers
Ben Davies, CeOBen Davies ran trading for RBS Greenwich Capital in London where he managed a macroportfolio. He started his career in 1995, trading in the Credit xed income market at CreditLyonnais, moving to IBJI as a xed income specialist and nally to Greenwich Capital in 1999.He graduated with a BSc in Management from Loughborough University. Ben Davies and MarkMahaffey, former colleagues from RBS Greenwich Capital, established Hinde Capital in early2007, primarily to focus on the precious metals and commodity sector.
Mark Mahaffey, CfO
Mark Mahaffey has 24 years experience in the international markets, having held seniorposts at several leading investment banks. He trained as a xed income specialist at DaiwaSecurities before joining Midland Montagu as Director of the US government trading desk.In 1990 he jointly set up the Greenwich Capital ofce in London where he managed a portfoliofocusing on global macro themes, before joining IBJI in 2001. His most recent appointment
from 2005 was Managing Director of Bank of America London Proprietary desk.
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All material is compiled from sources believed to be accurate, but no accuracy can be guaranteed.The presentation is for information purposes only and is not a solicitation to invest.Unauthorized reproduction or distribution is strictly prohibited.
The Mining Journal Investor SeminarsDate: 07/09/10
hinde CaPital:ContaCt inForMation
Hinde Capital10 New StreetLondon EC2M 4TPUnited Kingdom
Email Ben Davies, CEO: [email protected]
Email Mark Mahaffey, CFO: [email protected]
Phone +44 (0)20 7648 4600
www.hindecapital.com
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All material is compiled from sources believed to be accurate, but no accuracy can be guaranteed.
The Mining Journal Investor Seminars
hinde CaPital: disClaiMerHinde Gold Fund Ltd is an open-ended multi-class investment company incorporated in the British Virgin Islands.
This document is issued by Hinde Capital Limited, 10 New Street, London EC2M 4TP, which is authorised and regulated by the FinancialServices Authority. This document is for information purposes only. In no circumstances should it be used or considered as an offer to sell
or a solicitation of any offers to buy the securities mentioned in it. The information in this document has been obtained from sources believedto be reliable, but we do not represent that it is accurate or complete. The information concerning the performance track record is givenpurely as a matter of information and without legal liability on the part of Hinde Capital. Any decision by an investor to offer to buy any of thesecurities herein should be made only on the basis of the information contained in the relevant Offering Memorandum. Opinions expressedherein may not necessarily be shared by all employees and are subject to change without notice. The securities mentioned in this documentmay not be eligible for sale in some states or countries and will not necessarily be suitable for all types of investor. Questions concerningsuitability should be referred to a nancial adviser. The nancial products mentioned in this document can uctuate in value and may besubject to sudden and large falls that could equal the amount invested. Changes in the rate of exchange may also cause the value of yourinvestment to go up and down. Past performance may not necessarily be repeated and is not a guarantee or projection of future results.The Fund is categorised in the United Kingdom as an unregulated collective investment scheme for the purposes of the Financial Services
and Markets Act 2000 and their Shares cannot be marketed in the UK to general public other than in accordance with the provisions ofthe Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, the Financial Services and Markets Act 2000 (Promotionof Collective Investment Schemes) (Exemption) Order 2001, as amended, or in compliance with the rules of the Financial Services Authoritymade pursuant to the FSMA. Participants in this investment are not covered by the rules and regulations made for the protection of investorsin the UK. Participants will not have the benet of the rights designed to protect investors under the Financial Services and Markets Act2000. In particular, participants will lose the right to claim through the Financial Services Compensation Scheme. The securities referencedin this document have not been registered under the Securities Act of 1933 (the 1933 Act) or any other securities laws of any other U.S.
jurisdiction. Such securities may not be sold or transferred to U.S. persons unless such sale or transfer is registered under the 1933 Act oris exempt from such registration. This information does not constitute tax advice. Investors should consult their own tax advisor or attorneywith regard to their tax situation.