GOLD GOLD WARS WARS A Golden Renaissance A Tribute to Ferdinand - - PowerPoint PPT Presentation

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Jul 27, 2023 99 likes •526 views

THE THE GOLD GOLD WARS WARS A Golden Renaissance A Tribute to Ferdinand Lips (1931 2005) WHAT ARE GOLD WARS? Gold Wars are between governments and gold. This ultimately restricts the constitutional rights of the people. Gold is the

SLIDE 1

THE

GOLD WARS

THE

GOLD WARS

A Tribute to Ferdinand Lips (1931 – 2005)

A Golden Renaissance

SLIDE 2 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 Seminars Date: 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 nation’s currency. The suppression of gold by government allows them to mask the mismanagement of their currency.

SLIDE 3 DOLLAR – PURCHASING POWER PARITY BASIS 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 Seminars Date: 07/09/10

MONETARY POLLUTION

The dollar’s purchasing power has been trashed in the post-war period. One dollar can buy you less than one ninth of what it could have in 1950.

SLIDE 4 0%

200%
400%
600%
800%
1000%
1200%
1400%
1600%
1800%

Sources: EU Commission, Eurostat, CBO, IMF, Morgan Stanley Research Italy Germany France Portugal USA UK Spain Ireland Greece 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 Seminars Date: 07/09/10

GLOBAL DEBT MOUNTAIN

Today’s system of paper money is still very young. It depends solely on the belief that the debts upon which it is based will be repaid someday.

SLIDE 5 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 Seminars Date: 07/09/10

FERDINAND LIPS (1931 - 2005)

“Gold Ferdi, the Pope of Gold”, Karl Otto Pohl, former Head of the Bundesbank He’s back but arguably he never left us – as his life’s work lives on through the Lips Institute www.lips-institute.ch

SLIDE 6 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 Seminars Date: 07/09/10

GOLD WARS

Gold Wars are between governments and gold. This ultimately restricts the constitutional rights of the people.

SLIDE 7 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 Seminars Date: 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. Stagflation of 1970s and US Treasury and IMF Gold Sales

7. The Failure of the Second London Gold Pool of 1990s and 2000s?

SLIDE 8 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 Seminars Date: 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 Gold market reopened London Gold Pool established Berlin Crisis The London Gold Pool is dismantled Cuban Missile Crisis Six day war Gulf of Tonkin Incident De Gaulle’s gold speech First official US combat troops arrive 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

SLIDE 9 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 Seminars Date: 07/09/10

THE TWO-TIER GOLD MARKET 1968

$34 1968 $36 $38 Gold Pool dismantled, price spikes up 1967-1971 Morning Fix - London Gold Market South African gold boycott begins South Africa sells gold for foreign currency Nixon ends gold convertability Run on US dollar, deutche mark allowed 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 accepts US compromise. London gold hits lowest level in history. Source: Financial Graph & Art

SLIDE 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 Seminars Date: 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 signal an overvalued market.

SLIDE 11 GOLD IN CURRENT DOLLARS 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 Seminars Date: 07/09/10

GOLD IN ‘REAL’ DOLLARS IS STILL VERY 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 gold adjusted for inflation.

SLIDE 12 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 Seminars Date: 07/09/10

GOLD IS UNDERVALUED IN CURRENCY TERMS

The official gold reserve in banks throughout 1930s to 1950s was 40% but in reality was much

higher. Even to achieve this backing, assuming current gold supply, the price of gold will have

to rise by three to four times.

1915 1920 1925 1930 1935 1940 1945 1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 150% 125% 100% 100% Gold-Backed 75% 50% 25% 0% Sources: U.S. Federal Reserve / World Gold Council GOLD BACKING OF THE U.S. MONETARY BASE (CURRENCY IN CIRCULATION + BANK RESERVE CASH)

SLIDE 13 CRB/S&P RATIO 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 Seminars Date: 07/09/10

COMMODITIES ARE UNDERV ALUED RELATIVE TO US EQUITIES

Commodities as a whole are very cheap compared to equities. At Hinde we believe commodities will rise as currency creation competes with supply constraints. This will be gold positive.

SLIDE 14 GOLD RELATIVE TO S&P 500 100 200 300 400 500 600 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 Seminars Date: 07/09/10

GOLD IS UNDERVALUED VERSUS US EQUITIES

Gold vs S&P would have go up six times to match the 1980 highs.

SLIDE 15 GOLD RELATIVE TO S&P 500 100 200 300 400 500 600 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-08 100 200 300 400 500 600 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 Seminars Date: 07/09/10

GOLD IS UNDERVALUED VERSUS US EQUITIES

Even more so on a total return basis:

The Gold v S&P ratio is currently one fifth

f 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.

SLIDE 16 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 Seminars Date: 07/09/10

GOLD UNDERVALUED BUT OUTPERFORMING ALL ASSET CLASSES

Over the last twenty years, gold has outperformed all major asset classes on many time horizons.

GOLD V MAJOR ASSETS

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)

SLIDE 17 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 Seminars Date: 07/09/10

GOLD IS UNDEROWNED

SLIDE 18 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 Saudi Arabia 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 Seminars Date: 07/09/10

MOST CENTRAL BANKS HOLD LITTLE GOLD

Emerging market central banks hold very little gold. Their primary holdings are in US

Treasuries. The scope for gold allocation in emerging markets is huge.

Source: IMF

SLIDE 19 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

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 Seminars Date: 07/09/10

MOST CENTRAL BANKS NOW LOVE GOLD

For the first 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

SLIDE 20 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 Seminars Date: 07/09/10

PAPER CURRENCY DWARFS GOLD ACCUMULATION

Central banks are net buyers. But as fast as they might buy their paper currency reserves keep 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

SLIDE 21 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 Seminars Date: 07/09/10

BUY WHAT CHINA IS BUYING: CHINA GOLD & SILVER LIBERALISATION

The defining moment for the War on Gold? August 2010 will be the time we look back and say that was when the war was potentially won. China’s PBoC announced “to further develop the gold market”. This country has a serious affinity for gold.

SLIDE 22 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 Seminars Date: 07/09/10

CURRENCY REFORM – YUAN LIBERALISATION

China has so far been accumulating mainly dollar assets rather than gold as its reserves

balloon. The potential free float of the Yuan paves the way towards currency reform with

Russia et al.

CHINA: FX RESERVES AND GOLD AS A % OF RESERVES 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

SLIDE 23 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 Seminars Date: 07/09/10

BRICS ADVOCATE CURRENCY REFORM

January 2009 Russian leader Mr Putin said the leading powers should ensure an “irreversible” move toward a system of multiple reserve currencies, questioning the “reliability” of the US dollar as a safe store of value. “The pride of Wall Street investment banks doesn’t exist anymore,” March 2009 PBoC Governor Zhou calls for new reserve currency “that is disconnected from individual nations and is able to remain stable in the long run, thus removing the inherent deficiencies caused by using credit-based national currencies.”

SLIDE 24 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 Seminars Date: 07/09/10

GOLDEN DEMOGRAPHICS: EMERGING MARKET OWNERSHIP IS LOW

It’s 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) 0.5 1 1.5 2 2.5 3 3.5 4 4.5 5 Saudi Arabia Turkey Hong Kong Germany Vietnam Egypt US Italy Thailand Russia UK India South Korea 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 the world average. Source: UN, WGC

SLIDE 25 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 Seminars Date: 07/09/10

GOLD INVESTMENT IS INFINITESIMAL

Imagine the impact of a shift out of bond markets into Gold…

INVESTMENT GOLD MARKET VALUE OF ALL GOLD GLOBAL MONEY SUPPLY (M3) FINANCIAL ASSETS 50 100 150 TRILLION $ 0.8 5.0 60.2 200.0

SLIDE 26 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 Seminars Date: 07/09/10

GOLD INVESTMENT HISTORICALLY MINUTE

In 1932 the allocation of gold relative to global financial investments was 20%. Today it stands at 0.8%. To rise to 2% would require 85,000 tonnes, approximately 34 years mine supply at 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

SLIDE 27 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 Seminars Date: 07/09/10

GOLD UNDEROWNED AND FALLING SUPPLY, RESERVE GRADE

So much demand but not so much supply. There have been less than 5 gold discoveries over 10mm troy oz. this past decade. Barrick needs to replace 9mm troy oz. of production a year.

12% 9% 6% 3% 0%

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 Costs US$/oz Reserve Grade g/t

SLIDE 28 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 Seminars Date: 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 be studied and mastered by themselves, the middle game and the opening must be studied in relation to the endgame”

Jose Raul Capablanca

SLIDE 29 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 Seminars Date: 07/09/10

GOLD ‘SHORTS’ UNDER PRESSURE

A series of actions have perhaps uncovered the distressed nature of the short perpetrators in 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 conflicting 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 first half of 2010

SLIDE 30

Cum. Overnight Change $/oz
Cum. Intraday Change $/oz

1600 1400 1200 1000 800 600 400 200 100

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 2001-2010 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 Seminars Date: 07/09/10

FAILURE OF THE SECOND LONDON GOLD POOL 2000 TO ?

Physical Gold dumped into the PM Fix to contain its price in a covert version of the 1960’s London Gold Pool. Selling at PM fix and purchasing at the AM fix for last nine yrs returns US$1,400 per troy ounce.

SLIDE 31 JULY 70 2X 4X 6X 8X 10X 12X 14X 16X JAN 71 JULY 71 JAN 72 JULY 72 JAN 73 JULY 73 JAN 74 JULY 74 JAN 75 JULY 75 JAN 76 JULY 76 JAN 77 JULY 77 JAN 78 JULY 78 JAN 79 JULY 79 JAN 80 JULY 80 JAN 81 JULY 81 1971 Nixon closes ‘Gold Window’ Are we here? 1999-PRESENT 1970-1980 GOLD REBASED FOR COMPARISON – 1970-1980 AND 1999 TO PRESENT GOLD IN NOMINAL $S FROM 1970-1980 AND FROM 1999 TO PRESENT 120 114 108 102 96 90 84 78 72 66 60 54 48 42 36 30 24 18 12 6 Months from Jan 1970, Jan 1999 resp.

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 Seminars Date: 07/09/10

GOLD – WHERE ARE WE NOW?

Gold went up considerably more in the 70s compared to the last decade.

SLIDE 32 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 Seminars Date: 07/09/10

HINDE CAPITAL

SLIDE 33 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 Seminars Date: 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

SLIDE 34 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 Seminars Date: 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 SECURE INVESTMENT

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 by investing in allocated gold held in a reputable Swiss Private Bank.

Default Risk Wealth Store Increased Risk Safer

SLIDE 35 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 Seminars Date: 07/09/10

HINDE CAPITAL

Hinde Capital’s structure ensures the firm’s operations are thoroughly audited and transparent.

SLIDE 36 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 Seminars Date: 07/09/10

HINDE GOLD FUND

Hinde 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)

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)

SLIDE 37 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 Seminars Date: 07/09/10

HINDE GOLD FUND

Hinde 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

SLIDE 38 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 Seminars Date: 07/09/10

OUR GOLDEN SECRET TO SUCCESS: A BRILLIANT CEO, CFO?

SLIDE 39 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 Seminars Date: 07/09/10

HINDE CAPITAL: INVESTMENT MANAGERS

BEN DAVIES, CEO Ben Davies ran trading for RBS Greenwich Capital in London where he managed a macro

portfolio. He started his career in 1995, trading in the Credit fixed income market at Credit

Lyonnais, moving to IBJI as a fixed income specialist and finally to Greenwich Capital in 1999. He graduated with a BSc in Management from Loughborough University. Ben Davies and Mark Mahaffey, former colleagues from RBS Greenwich Capital, established Hinde Capital in early 2007, 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 senior posts at several leading investment banks. He trained as a fixed income specialist at Daiwa Securities before joining Midland Montagu as Director of the US government trading desk. In 1990 he jointly set up the Greenwich Capital office in London where he managed a portfolio focusing 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.

SLIDE 40 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 Seminars Date: 07/09/10

HINDE CAPITAL: CONTACT INFORMATION

Hinde Capital 10 New Street London EC2M 4TP United Kingdom Email Ben Davies, CEO: ben.davies@hindecapital.com Email Mark Mahaffey, CFO: mark.mahaffey@hindecapital.com Phone +44 (0)20 7648 4600 www.hindecapital.com

SLIDE 41 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 Seminars Date: 07/09/10

HINDE CAPITAL: DISCLAIMER

Hinde 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 Financial Services Authority. This document is for information purposes only. In no circumstances should it be used or considered as an offer to sell

r a solicitation of any offers to buy the securities mentioned in it. The information in this document has been obtained from sources believed

to be reliable, but we do not represent that it is accurate or complete. The information concerning the performance track record is given purely 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 the securities herein should be made only on the basis of the information contained in the relevant Offering Memorandum. Opinions expressed herein may not necessarily be shared by all employees and are subject to change without notice. The securities mentioned in this document may not be eligible for sale in some states or countries and will not necessarily be suitable for all types of investor. Questions concerning suitability should be referred to a financial adviser. The financial products mentioned in this document can fluctuate in value and may be subject to sudden and large falls that could equal the amount invested. Changes in the rate of exchange may also cause the value of your investment 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 of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, the Financial Services and Markets Act 2000 (Promotion

f Collective Investment Schemes) (Exemption) Order 2001, as amended, or in compliance with the rules of the Financial Services Authority

made pursuant to the FSMA. Participants in this investment are not covered by the rules and regulations made for the protection of investors in the UK. Participants will not have the benefit of the rights designed to protect investors under the Financial Services and Markets Act

2000. In particular, participants will lose the right to claim through the Financial Services Compensation Scheme. The securities referenced

in 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 or

is exempt from such registration. This information does not constitute tax advice. Investors should consult their own tax advisor or attorney with regard to their tax situation.