Precious Metals Portfolio

INVESTMENT OBJECTIVE DESCRIPTION

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.

INVESTOR PROFILE

This portfolio is suitable for sophisticated investors with significant net worth and a high tolerance for risk.

INVESTMENT MINIMUM

MANAGEMENT STYLE

We employ put option protection and short ETFs (exchange-traded funds) as a means of risk management to offset market exposure. These methods can lose value if the market does not fall. In volatile markets, our risk management strategy can create higher than normal trading activity; therefore, volatile markets can increase transaction costs for managing the account.

PORTFOLIO HOLDINGS

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

Portfolio holdings typically include mid-tier and large-cap producers, with a lesser portion of late-stage development "junior" companies and gold, silver, platinum, or palladium bullion or coins (IRA accounts will be limited to gold and silver American Eagle coins).

Precious metals exchange traded funds (ETFs) may make up a portion of the portfolio.

Options strategies, inverse strategies, and leveraged strategies may be employed to mitigate volatility.

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" (i.e. "low price securities"), which involve unique risks.

Please note: This portfolio only contains stock in mining companies, other mining-related investment instruments, and bullion/coins. We do not directly invest in metals futures (such as silver or gold contracts) for our clients.

INCEPTION DATE

31 December 2002


INVEST WITH US

If you are interested in opening an account, please complete our Invest with Us inquiry form or call us directly at (888) 486-3939 or (858) 487-3939.


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