THE

GOLD
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 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.

The Mining Journal Investor Seminars All material is compiled from sources believed to be accurate, but no accuracy can be guaranteed.
Date: 07/09/10 The presentation is for information purposes only and is not a solicitation to invest.
Unauthorized reproduction or distribution is strictly prohibited.
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.

DOLLAR – PURCHASING POWER PARITY BASIS

4.5

3.5

2.5

1.5

0.5

0
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

The Mining Journal Investor Seminars All material is compiled from sources believed to be accurate, but no accuracy can be guaranteed.
Date: 07/09/10 The presentation is for information purposes only and is not a solicitation to invest.
Unauthorized reproduction or distribution is strictly prohibited.
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.

TOTAL DEBT & LIABILITIES AS % OF GDP

400% Cost of ageing

Structural deficit
200% Initial debt level

0%

-200%

-400%

-600%

-800%

-1000%

-1200%

-1400%

-1600%

-1800%

Greece
Italy

Germany

France

USA
Portugal

UK

Spain

Ireland
Sources: EU Commission, Eurostat, CBO, IMF, Morgan Stanley Research

The Mining Journal Investor Seminars All material is compiled from sources believed to be accurate, but no accuracy can be guaranteed.
Date: 07/09/10 The presentation is for information purposes only and is not a solicitation to invest.
Unauthorized reproduction or distribution is strictly prohibited.
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

The Mining Journal Investor Seminars All material is compiled from sources believed to be accurate, but no accuracy can be guaranteed.
Date: 07/09/10 The presentation is for information purposes only and is not a solicitation to invest.
Unauthorized reproduction or distribution is strictly prohibited.
Gold Wars
Gold Wars are between governments and gold.
This ultimately restricts the constitutional rights of the people.

The Mining Journal Investor Seminars All material is compiled from sources believed to be accurate, but no accuracy can be guaranteed.
Date: 07/09/10 The presentation is for information purposes only and is not a solicitation to invest.
Unauthorized reproduction or distribution is strictly prohibited.
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?

The Mining Journal Investor Seminars All material is compiled from sources believed to be accurate, but no accuracy can be guaranteed.
Date: 07/09/10 The presentation is for information purposes only and is not a solicitation to invest.
Unauthorized reproduction or distribution is strictly prohibited.
The London Gold Pool 1960 – 68
The Gold Price was fixed at $35 a troy ounce

$38 1954 – 1968 Morning Fix, Left Axis,

London Gold Market

US Gold Reserves

Yearly Tonnes, Right Axis

$37

The London Gold Pool is dismantled

Berlin Crisis
$36
London Gold Pool established
Cuban Missile Crisis
$35.50 Gulf of Tonkin Incident
De Gaulle’s gold speech
Suez Canal nationalised
Six day war
$35.25
London Gold Suez Crisis – France,
market reopened Israel and Britain invade Egypt
$35.20

$35.15

$35.10 21,000

$35.05 19,000
First official US combat troops
arrive in Vietnam
$35.00 17,000
France leaves the Gold Pool
$34.95 15,000
British pound devalued 14%
October 1960 gold crisis begins
$34.90 as gold breaks $35.20 13,000
Tet Offensive
$34.85 11,000

9,000
1954

1956

1958

1960

1962

1964

1966

1968
Source: Financial Graph & Art

The Mining Journal Investor Seminars All material is compiled from sources believed to be accurate, but no accuracy can be guaranteed.
Date: 07/09/10 The presentation is for information purposes only and is not a solicitation to invest.
Unauthorized reproduction or distribution is strictly prohibited.
The Two-Tier Gold Market 1968
When the Gold Price was fixed at $35

1967-1971 Morning Fix - London Gold Market

$46

South Africa sells gold Nixon ends

$44 for foreign currency gold convertability

3 6

$42

$40

Run on US dollar,
deutche mark
allowed to float
Gold Pool dismantled,
$38 1
price spikes up
South African gold
2
boycott begins

$36 4

South Africa accepts

$34
US compromise. London gold
hits lowest level in history.

1968 1969 1970 1971

Source: Financial Graph & Art

The Mining Journal Investor Seminars All material is compiled from sources believed to be accurate, but no accuracy can be guaranteed.
Date: 07/09/10 The presentation is for information purposes only and is not a solicitation to invest.
Unauthorized reproduction or distribution is strictly prohibited.
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.

The Mining Journal Investor Seminars All material is compiled from sources believed to be accurate, but no accuracy can be guaranteed.
Date: 07/09/10 The presentation is for information purposes only and is not a solicitation to invest.
Unauthorized reproduction or distribution is strictly prohibited.
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.
GOLD IN CURRENT DOLLARS

1,800

1,600

1,400

1,200

1,000

800

600

400

200

0
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

The Mining Journal Investor Seminars All material is compiled from sources believed to be accurate, but no accuracy can be guaranteed.
Date: 07/09/10 The presentation is for information purposes only and is not a solicitation to invest.
Unauthorized reproduction or distribution is strictly prohibited.
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.

GOLD BACKING OF THE U.S. MONETARY BASE

(CURRENCY IN CIRCULATION + BANK RESERVE CASH)

150%

125%

100% Gold-Backed
100%

75%

50%

25%

0%
1915

1995
1920

1925

1930

1935

1940

1945

1950

1955

1960

1965

1970

1975

1980

1985

1990

2000

2005

2010
Sources: U.S. Federal Reserve / World Gold Council

The Mining Journal Investor Seminars All material is compiled from sources believed to be accurate, but no accuracy can be guaranteed.
Date: 07/09/10 The presentation is for information purposes only and is not a solicitation to invest.
Unauthorized reproduction or distribution is strictly prohibited.
Commodities are Undervalued
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.

CRB/S&P RATIO

3.5

2.5

1.5

0.5

0
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

The Mining Journal Investor Seminars All material is compiled from sources believed to be accurate, but no accuracy can be guaranteed.
Date: 07/09/10 The presentation is for information purposes only and is not a solicitation to invest.
Unauthorized reproduction or distribution is strictly prohibited.
Gold is Undervalued versus
US Equities
Gold vs S&P would have go up six times to match the 1980 highs.

GOLD RELATIVE TO S&P 500

600

500

400

300

200

100

0
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

The Mining Journal Investor Seminars All material is compiled from sources believed to be accurate, but no accuracy can be guaranteed.
Date: 07/09/10 The presentation is for information purposes only and is not a solicitation to invest.
Unauthorized reproduction or distribution is strictly prohibited.
Gold is Undervalued versus
US Equities
Even more so on a total return basis:

GOLD RELATIVE TO S&P 500

600 600

The Gold v S&P ratio is currently one fifth

500 of the high it reached in the early 1980s. 500
Gold v Total Return S&P, however,
is standing at only one twelfth the peak
400 it reached in 1980. 400

300 300

200 200

100 100

0 0
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
Gold/Total Return S&P

The Mining Journal Investor Seminars All material is compiled from sources believed to be accurate, but no accuracy can be guaranteed.
Date: 07/09/10 The presentation is for information purposes only and is not a solicitation to invest.
Unauthorized reproduction or distribution is strictly prohibited.
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

350% 10y US Treasury (total return*) (*from 1994)

S&P 500
300% MSCI World
CRB Index
Gold (USD)
250%

200%

150%

100%

50%

0%

-50%
1y Return 5yr Return 10y Return 15y Return 20y Return

The Mining Journal Investor Seminars All material is compiled from sources believed to be accurate, but no accuracy can be guaranteed.
Date: 07/09/10 The presentation is for information purposes only and is not a solicitation to invest.
Unauthorized reproduction or distribution is strictly prohibited.
Gold is Underowned

The Mining Journal Investor Seminars All material is compiled from sources believed to be accurate, but no accuracy can be guaranteed.
Date: 07/09/10 The presentation is for information purposes only and is not a solicitation to invest.
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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.

PERCENTAGE OF RESERVE ASSETS IN GOLD

100%

87.9%
90%
78.5% 78.4%
80% 75.2%

70%

60%

50%

40%

30%

20%
12.6%
8.1%
10%
3.0% 1.7% 0.5%
0%
US

World
France

Germany

Netherlands

Saudi Arabia

China
India

Brazil
Source: IMF

The Mining Journal Investor Seminars All material is compiled from sources believed to be accurate, but no accuracy can be guaranteed.
Date: 07/09/10 The presentation is for information purposes only and is not a solicitation to invest.
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 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.

NET CENTRAL BANK SALES CENTRAL BANK % RESERVES IN GOLD SINCE 1970

MILLION %
OUNCES
20 70

10 60

0 50

-10 40

-20 30

-30 20

-40 10
1951
1953
1955
1957
1959
1961
1963

1979
1981
1983
1985
1987
1965
1967
1969
1971
1973
1975
1977

1989
1991

2009
1993
1995
1997
1999
2001
2003
2005
2007

1972

1974
1976

1978

1980

1982
1984

1986
1988

1990
1992

1994

1996

1998
2000

2002
2004
2006

2008
Source: IMF Source: IMF

The Mining Journal Investor Seminars All material is compiled from sources believed to be accurate, but no accuracy can be guaranteed.
Date: 07/09/10 The presentation is for information purposes only and is not a solicitation to invest.
Unauthorized reproduction or distribution is strictly prohibited.
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%.

CENTRAL BANK HOLDINGS OF GOLD IN MM TROY OUNCES CENTRAL BANK TOTAL INTERNATIONAL RESERVES – $ VALUE

1,200 BILLION $

8000

1,150
7000

6000
1,100
5000

4000
1,050

3000

2000
1,000

1000

950

1994

1997

2000

2006

2009
1973

1976

1979

1982

1985

1988

1991

2003
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

Source: IMF Source: IMF

The Mining Journal Investor Seminars All material is compiled from sources believed to be accurate, but no accuracy can be guaranteed.
Date: 07/09/10 The presentation is for information purposes only and is not a solicitation to invest.
Unauthorized reproduction or distribution is strictly prohibited.
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.

The Mining Journal Investor Seminars All material is compiled from sources believed to be accurate, but no accuracy can be guaranteed.
Date: 07/09/10 The presentation is for information purposes only and is not a solicitation to invest.
Unauthorized reproduction or distribution is strictly prohibited.
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

3,000 5.0%

4.5%
2,500
4.0%

3.5%
2,000
3.0%

1,500 2.5%

2.0%
1,000
1.5%

1.0%
500
0.5%

0 0.0%
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
Gold as a %
FX Reserves, $ mns

The Mining Journal Investor Seminars All material is compiled from sources believed to be accurate, but no accuracy can be guaranteed.
Date: 07/09/10 The presentation is for information purposes only and is not a solicitation to invest.
Unauthorized reproduction or distribution is strictly prohibited.
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.”

The Mining Journal Investor Seminars All material is compiled from sources believed to be accurate, but no accuracy can be guaranteed.
Date: 07/09/10 The presentation is for information purposes only and is not a solicitation to invest.
Unauthorized reproduction or distribution is strictly prohibited.
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)

4.5
China still hugely underowns gold.
4 It owns much less on a per capita
3.5
basis than several other countries,
and also owns less than the
3 world average.
2.5

1.5

0.5

0
Vietnam

US

UK
Hong Kong

Japan
Turkey

South Korea
Egypt

Russia

Indonesia
Italy

Thailand

World

Taiwan
Saudi Arabia

Germany

China

France
India

Source: UN, WGC

The Mining Journal Investor Seminars All material is compiled from sources believed to be accurate, but no accuracy can be guaranteed.
Date: 07/09/10 The presentation is for information purposes only and is not a solicitation to invest.
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Gold Investment
is Infinitesimal
Imagine the impact of a shift out of bond markets into Gold…

TRILLION $
200.0

150

100

60.2
50

0.8 5.0
INVESTMENT

MARKET VALUE

GLOBAL MONEY
SUPPLY (M3)

FINANCIAL
ASSETS
GOLD

OF ALL GOLD

The Mining Journal Investor Seminars All material is compiled from sources believed to be accurate, but no accuracy can be guaranteed.
Date: 07/09/10 The presentation is for information purposes only and is not a solicitation to invest.
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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

35%

30%

25%

20%

15%

10%

5%

0%
1921 1932 1948 1981 2009

Source: Erste Bank

The Mining Journal Investor Seminars All material is compiled from sources believed to be accurate, but no accuracy can be guaranteed.
Date: 07/09/10 The presentation is for information purposes only and is not a solicitation to invest.
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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.

GOLD MINE SUPPLY HEADING DOWN GLOBAL MINE COSTS AND RESERVE GRADE g/t

750 1.8
Tonnes
12% 1.7
2500 650
1.6
9%

Reserve Grade g/t

550
1.5

Costs US$/oz
6% 450 1.4
2000
1.3
3% 350
1.2
0% 1500 250
1.1

-3% 150 1

1992

1993

1994

1995

1996

1997

1998

1999

2005

2006

2007

2008

2009
2000

2001

2002

2003

2004
-6% 1000
1987 1990 1993 1996 1999 2002 2005 2008 2011E Cash cost

Total costs
Mine Supply Mine Supply Reserve grade

Source: World Gold Council, UBS

The Mining Journal Investor Seminars All material is compiled from sources believed to be accurate, but no accuracy can be guaranteed.
Date: 07/09/10 The presentation is for information purposes only and is not a solicitation to invest.
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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

The Mining Journal Investor Seminars All material is compiled from sources believed to be accurate, but no accuracy can be guaranteed.
Date: 07/09/10 The presentation is for information purposes only and is not a solicitation to invest.
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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

The Mining Journal Investor Seminars All material is compiled from sources believed to be accurate, but no accuracy can be guaranteed.
Date: 07/09/10 The presentation is for information purposes only and is not a solicitation to invest.
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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.
CUMULATIVE INTRADAY CHANGE AND CUMULATIVE
OVERNIGHT CHANGE IN GOLD 2001-2010

1600 100 Overnight

Intraday
1400 0
Cum. Overnight Change $/oz

1200

Cum. Intraday Change $/oz

-100

1000
-200
800
-300
600

-400
400

-500
200

0 -600
1/1/2001 9/28/2003 6/24/2006 3/20/2009 12/15/2011

Source: Adrian Douglas, www.marketforceanalysis.com

The Mining Journal Investor Seminars All material is compiled from sources believed to be accurate, but no accuracy can be guaranteed.
Date: 07/09/10 The presentation is for information purposes only and is not a solicitation to invest.
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Gold – Where Are We Now?
Gold went up considerably more in the 70s compared to the last decade.

GOLD REBASED FOR COMPARISON – 1970-1980 AND 1999 TO PRESENT GOLD IN NOMINAL $S FROM 1970-1980
AND FROM 1999 TO PRESENT
1900
16X
1700
14X
1500
12X
1300

10X 1971 Nixon closes 1100

‘Gold Window’ Are we here? 900

8X
700
6X
500
4X
300

2X 100

-100
6 12 18 24 30 36 42 48 54 60 66 72 78 84 90 96 102 108 114 120
JAN 72
JULY 72

JULY 73

JAN 79
JULY 79
JAN 71
JULY 71

JAN 73

JAN 74
JULY 74
JAN 75
JULY 75

JAN 77
JULY 77

JAN 80
JULY 80
JAN 81
JULY 81
JULY 70

JAN 76

JAN 78
JULY 78
JULY 76

Months from Jan 1970, Jan 1999 resp.

1970-1980
1999-Present
1970-1980 1999-PRESENT

The Mining Journal Investor Seminars All material is compiled from sources believed to be accurate, but no accuracy can be guaranteed.
Date: 07/09/10 The presentation is for information purposes only and is not a solicitation to invest.
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Hinde capital

The Mining Journal Investor Seminars All material is compiled from sources believed to be accurate, but no accuracy can be guaranteed.
Date: 07/09/10 The presentation is for information purposes only and is not a solicitation to invest.
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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

The Mining Journal Investor Seminars All material is compiled from sources believed to be accurate, but no accuracy can be guaranteed.
Date: 07/09/10 The presentation is for information purposes only and is not a solicitation to invest.
Unauthorized reproduction or distribution is strictly prohibited.
Hinde Gold Fund: A Highly Secure
Investment Default Risk Increased Risk

Default Risk Other Increased Risk

Swaps & Derivatives

Physical Bullion ETFs

(warning hotspot)

Comex & Tocom Futures

(warning potential hotspot)

Unallocated Gold Bullion

Wealth Store Allocated Gold Bullion (stored at secure vaults in viable jurisdiction) Safer
Wealth Store Safer

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.

The Mining Journal Investor Seminars All material is compiled from sources believed to be accurate, but no accuracy can be guaranteed.
Date: 07/09/10 The presentation is for information purposes only and is not a solicitation to invest.
Unauthorized reproduction or distribution is strictly prohibited.
Hinde Capital
Hinde Capital’s structure ensures the firm’s operations are thoroughly audited and transparent.

The Mining Journal Investor Seminars All material is compiled from sources believed to be accurate, but no accuracy can be guaranteed.
Date: 07/09/10 The presentation is for information purposes only and is not a solicitation to invest.
Unauthorized reproduction or distribution is strictly prohibited.
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)

28%

23%

18%

13%

8%

3%

-2%

-7%
Sep-09

Aug-10
Nov-09

Dec-09
Oct-09

Apr-10

Jul-10
Feb-10

Mar-10
Jan-10

May-10

Jun-10
Monthly Relative Performance
Cumulative Relative Performance (RHS)

The Mining Journal Investor Seminars All material is compiled from sources believed to be accurate, but no accuracy can be guaranteed.
Date: 07/09/10 The presentation is for information purposes only and is not a solicitation to invest.
Unauthorized reproduction or distribution is strictly prohibited.
Hinde Gold Fund
Hinde Gold Fund has performed well against other assets since its inception.

HGF COMPARATIVE PERFORMANCE SINCE INCEPTION

160

140

120

100

80

60

40
May-08

May-09

May-10
Mar-08

Mar-09

Mar-10
Nov-07

Nov-08

Nov-09
Sep-07

Jan-08

Jul-08

Sep-08

Jan-09

Jul-09

Sep-09

Jan-10

Jul-10
Hinde Gold Fund
MSCI World
GDM

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Date: 07/09/10 The presentation is for information purposes only and is not a solicitation to invest.
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Our Golden Secret to success:
A brilliant CEO, CFO?

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Date: 07/09/10 The presentation is for information purposes only and is not a solicitation to invest.
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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.

The Mining Journal Investor Seminars All material is compiled from sources believed to be accurate, but no accuracy can be guaranteed.
Date: 07/09/10 The presentation is for information purposes only and is not a solicitation to invest.
Unauthorized reproduction or distribution is strictly prohibited.
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

The Mining Journal Investor Seminars All material is compiled from sources believed to be accurate, but no accuracy can be guaranteed.
Date: 07/09/10 The presentation is for information purposes only and is not a solicitation to invest.
Unauthorized reproduction or distribution is strictly prohibited.
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
or 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
of 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.

The Mining Journal Investor Seminars All material is compiled from sources believed to be accurate, but no accuracy can be guaranteed.
Date: 07/09/10 The presentation is for information purposes only and is not a solicitation to invest.
Unauthorized reproduction or distribution is strictly prohibited.