PAM ACCOUNT — PRECIOUS METALS PORTFOLIO

In this type of fee-based Premier Asset Management (PAM) account, Puplava Financial Services, Inc. (PFS), in its capacity as a Registered Investment Advisor, and its investment advisor representatives (IARs) direct and manage specified client accounts according to their research, investment style and management philosophy. In particular, investors in this portfolio lean on Jim Puplava’s unique expertise in the precious metals sector as he determines which precious metals mining companies are worthy of long-term investment.

Primary emphasis on achieving aggressive long-term growth and maximum capital appreciation in precious metals sector; generally little focus on generation of current income. Focus on aggressive precious metals equities, a substantial portion of such may be foreign equities. Low to high exposure to interest rate risk; high to extremely high exposure to market risk and sector risk. Exposure to foreign risk and/or currency risk highly likely. The account represents a very high level of risk over a long time horizon and is likely to be extremely volatile.

The model portfolio is an assortment of precious metals companies and other precious metals-related investment instruments.

This portfolio is suitable for sophisticated investors with significant net worth.

ACCOUNT DETAILS

CHARACTERISTICS

Initial investment minimum $200,000
Annual management fee of 2.00% advance-billed quarterly
Transaction costs charged in addition to management fees (contact us for a schedule of fees)
IAR does not participate in commissions from the purchase or sale of equities
IAR has discretion over all trading

PORFOLIO HOLDINGS

Portfolio holdings typically include junior exploration, development and producer companies with a lesser portion of mid-tier and large-cap producers. Precious metals exchange trades funds (ETFs) may make up a portion of the portfolio. Allocations to different types of precious metals companies are subject to change as we try to respond to current (or perceived future) market conditions.

This portfolio is likely to contain "penny stocks," which involve unique risks.

Please note: This portfolio contains stock in precious metals mining companies and other precious metals-related investment instruments. We do not invest directly in physical metal (i.e. coins, rounds, or bullion) for our clients.

TIME HORIZON

Because we adhere to value investing, we believe two years is an appropriate period of time to allow us to build the portfolio mix and produce investment returns. Managed accounts terminated by the investor prior to the two-year mark will be subject to the penalty fee outlined in the management agreement governing the account.

Investors in the Premier Asset Management Precious Metals Portfolio Account, in particular, should be investors comfortable with a five-year or longer time horizon.

MAINTAINING INVESTMENT MINIMUMS

Investment minimums apply primarily to the level of assets required to open a new account. As assets in the account fluctuate in price, investors are not required to add funds to maintain the minimum. However, should withdrawals from the managed account take the account balance significantly below the minimum, we may request that the managed account be closed and its assets be moved to a commission-based Standard Brokerage account.

REPORTING

We keep our transactions in your portfolio as transparent as possible. As a client, you will be kept up-to-date on your investments via:

Online access to your account holdings, monthly statements, trade confirmations, tax documentation, and select Fidelity research through our clearing firm’s client website, www.myStreetscape.com.
Monthly statements and confirmations of trades mailed to you by our clearing firm.
Our weekly client-only “In the Know” newsletter. Trading coverage will be limited, due to the proprietary nature of the research and due diligence behind the majority of trading decisions made in this portfolio.
Semi-annual performance updates
Staff accessibility for questions about your investments.

COMPENSATION

The annual account management fee for this account is 2.00% of the total assets invested. As your assets grow, our compensation is rewarded with a commensurate increase in fees.

Pro-rated management fees are advance-billed quarterly and deducted directly from your account based on the average account balance during the proceeding quarter.

OUTSIDE EXPERTISE

In addition to Jim Puplava’s own expertise in this arena, he consults with the following to gain perspective on the volatile precious metals markets:

Frank Barbera, editor of the Gold Stock Technician (GST) Newsletter, provides technical analysis on the precious metals sector.
Dr. Keith Barron (PhD, Geology), co-founder of Aurelian Resources Inc. (AMEX: AUREF) conducts onsite due diligence on certain precious metals mining companies in which we are considering investment.

CONTACT US

If you are interested in our Premier Asset Management Precious Metals Portfolio account, please complete our Contact Form or call us directly at (888) 486-3939 or (858) 487-3939).