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GOLD UPDATE

Bernie Doyle

Investment Advisor

bd@popecompany.com

cell: 647-504-8757

Disclaimer

This, like all of our publications, is designed to provide authoritative information in regard to the subjectmatter covered. Although great effort has been made to provide accurate information, the author, andorganizer of The Wealth Resource including Pope & Company assume no responsibility for errors,inaccuracies, omissions, or any inconsistencies herein. This document is not an offer to buy or sell anyinvestments, or to hasten an individual to participate in any type of transaction.

Always consult with an investment professional before making investment decisions.

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A total of 161,000 tonnes of gold have been mined in

human history, as of 2009 .[1] This is roughly

equivalent to 5.175 billion troy ounces or, in terms of

volume, about 8,333 cubic metres, and could bevalued at just under six trillion United States dollars

at early March 2010 prices.

GOLD

Dear Wealth Resource Member,

At the time of writing this the price of Gold was $1150/oz. Up 35% from its 12 month low!!!

Many are calling for $1500-$2000 soon. Wow!

How can you get into the action?

Plenty of ways. But it depends on what you are trying to do and in what time period.

Here are a few of your options.

Bullion Producer Stocks Exploration Stocks ETF's Mutual Funds Flow-through Limited Partnerships

How you can participate is the basis of this writing. All the logos in this document are hyperlinks towebsites that you can refer to for more information.

First, we are going to look at current world events affecting Gold and the Gold market. Then we willlook at different ways to buy Gold or participate in the Gold Sector.

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The 6 drivers in the above chart lay out a “perfect storm” scenario, the gravity of which can only betruly understood with deep study. Nevertheless, participation in Gold is actually very easy. As anInvestment Advisor I’m leaning towards gold as bei ng almost a necessity in one’s portfolio. There areseveral ways to be exposed to gold that run the gamut from conservative to aggressive. As an investoreven if you are skeptical about gold, it is suggested that at least you avail yourself of what your optionsare.

The people that hold gold already know the comfort that if offers, especially through the last dramaticmarket catastrophe.

Dramatic and unexpected things happen in life all the time. In some cases the end results aredevastating. There are few things that be relied on completely. As an extreme example, if your houseburns down then all is lost, except for the foundation of the building, which doesn’t burn. On thatfoundation one can rebuild.

Recently some economies in the world have suffered immeasurably; their currency has been left gutted,Iceland for example.

Gold is a foundation that is always available to be built upon and it can be relied upon. Even incatastrophic circumstances of hyper inflation when the buying power of a dollar is drastically reducedgold has proven for centuries to hold its value. There has always been marketability of gold in everycircumstance that the human race has faced. Even when all else is crumbling around there still exists a“grey market” where gold can be used in exchange for the necessities of life.

The purpose of this writing is to demonstrate the ways that an investor can participate in Gold. Thereare two distinct categories described here. One is regarding gold that you have personal and instantaccess to called Essential . The other is where you participate in exposure to gold though investmentscalled Speculation .

There will always be a market for the solid gold that you have in your hand. This in and of itself is reasonenough to own gold. When drowning you need oxygen, when starving you need food, when incatastrophic economic circumstances you need gold. Nobody knows when or how catastrophiceconomic events occur until after the fact, then it is too late. For survival you need your health, forprogress you need your skills, for exchange you need gold. Gold in a bank that has crashed is worthlessto you if you cannot get your hands on it. Oxygen is useless to you if you are underwater by just oneinch.

Nobody thought Lehman Brothers could go down. Nobody thought the Titanic could sink. Nobodythought that Greece could go bankrupt. Nobody thought the American government would be writingbad IOU’s to its civilians. Nobody thinks it can happen to them.

It’s interesting to note that the Chinese government has recommended to all of its citizens to have solidgold as a personal possession. That’s over a billion people . They are buying.

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Many nations mint bullion coins. Although nominallyissued as legal tender, these coins' face value ascurrency is far below that of their value as bullion. Forinstance, Canada mints a gold bullion coin (the GoldMaple Leaf) at a face value of $50 containing one troyounce (31.1035 g) of gold —as of July 2009, this coin isworth about $1,075 as bullion. [citation needed ] Bullioncoins' minting by national governments gives them somenumismatic value in addition to their bullion value, as

well as certifying their purity.

Bullion

On the following pages we will look at a variety of ways that an investor can expose themselves to theGold Sector.

There are two categories detailed in the following.

1) Essential : The holding of physical gold, offering immediate possession of the gold

2) Speculative : The holding of gold in various other forms as an investment strategy.

Essential Gold

Where to buy gold Bullion:

Here are two trusted sources for bars and coinage.

ScotiaMocatta

ScotiaMocatta, a division of The Bank of Nova Scotia, is a global leader in precious metals innovation.The Mocatta ®name has been synonymous with bullion for over three centuries. As one of the world'stop bullion dealers, ScotiaMocatta is a global full-service organization that provides hedging, financing,and physical products and services.

At ScotiaMocatta you can walk up to the counter and walk away with gold in your hand.

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The Royal Canadian Mint

There are 5 different locations in the GTA where most of them serve the public on a cash and carrybasis. Specific quantities or denominations may require arrangement.

There are other gold refineries around Toronto that may or may not deal with the public.

Selling:

The ease with which you can sell gold will depend largely on how easily the content of pure gold can bedetermined in the bar or gold coin in your possession. This is one reason why gold bullion has become sopopular for gold investing. People are able to sell gold better as coins because the quality and quantityof pure gold coins is guaranteed. This guarantee makes it easy to sell gold to dealers around the world.All dealers will be familiar with the current value of gold.

You might be happy to see that the market value of gold has shot up overnight, and try to sell gold to adealer immediately or sell the gold on eBay at the current price. However, gold dealers might act lessinterested in the gold that day, hoping the price will return to its previous position. Ideally, the dealersyou contact will offer you a small percent premium on the gold you sell. This is not always the case,

however; you may find the dealer asking to buy the gold at a percent discount.

Though all dealers will be familiar with the current standard value of gold, there will always be debate asto whether that price will rise or fall in the near future. That's the reason for small discrepancies in offerswhen you sell gold coins. Even with bullion like the Maple Leaf gold coins, this is the case, which is whyit's so important that you look around before deciding where to sell gold. Contact multiple dealers andshop around before you buy or sell gold. Look for the best price when you put up your gold coins forsale. Because the standard gold value is updated and relied on by everyone, you won't encounterradically different offers, but the percent premium could be slightly better from some dealers than fromothers.

You can consider selling gold online. You can sell gold directly to dealers, locating them simply by

searching for "sell gold" using Google. You can also sell your gold in auction on eBay. If you’re beginningprice is the current standard value, and yet that standard value of gold drops while your gold is up forsale, then you probably won't be able to sell the gold until you remove the item and repost at thecurrent price. You can refer to Kitco for current gold pricing.

As noted above in dire circumstances gold can be used to buy just about anything in the “grey market”.History has shown the “grey market” to be ubiquitous during turbulent times this is why it is calledEssential .

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Investment

The writer recommends the holding of physical gold in one’s own possession. Keep it in some safelocation or vault that only you have access to. Other physical gold holding can be kept in safety depositboxes, but it is important to get in writing that the possessions that you have in your safety deposit boxare the sole property of you personally and not that of the institution which is holding it for you.

There are other services that will hold your gold and you have legal ownership through certificate. This iswhere a line is drawn in the philosophy of why to hold gold. Once your gold holdings are out of yourimmediate possession then your par ticipation in gold becomes “Speculative” rather than “Essential”.

The rest of this writing deals wi th the holding of gold in the “Speculative” sense either as a hedgeagainst inflation or a speculative play on the change in price.

Speculative Gold

These are exciting days for gold with new highs being reached and speculation going wild. Currencies areexperiencing tremors like never before and the emerging economies of the world are clamoring forsecurity of their currencies. Central Banks around the world are in a buying position on gold and nationsare buying it by the tonne, India for example.

The gold bugs are grinning and prices per ounce are being projected into the thousands. (So says Rob

McEwen of US Gold Corp. and many others).

What follows are a variety of ways that an investor can get a piece of the action.

Since 1919 the most common benchmark for theprice of gold has been the London gold fixing, atwice-daily telephone meeting of representativesfrom five bullion- trading firms of the London bullionmarket. Furthermore, gold is traded continuouslythroughout the world based on the intra-day spotprice, derived from over-the-counter gold-tradingmarkets around the world

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Central Fund of Canada

Easy to make a bullion investment. Central Fund shares trade on the open market like any other listedstock. A call to your Advisor is all you need.

Central Fund of Canada Limited is “The Sound Monetary Fund”. Central Fund's purpose is to hold gold and silver bullion on a secure basis for the convenience of

investors in the shares of Central Fund.(At least 90% of Central's assets are Gold and Silver at all times.)Central is listed on the Toronto Stock Exchange - Symbols: Cdn. $ CEF.A

Questrade

Bullion in Account:

Quest trade offers a way to have an investment in physical gold as an asset in an account, your gold isnot easily accessable but it is yours. Gold trading in stocks and options or registered accounts isexclusively available at Questrade.

Benefit from positive movements on the gold spot market 1.

Historically, gold tends to move in the opposite direction of stocks and bonds.

Invest directly in gold, and avoid the management fees associated with gold certificates orfunds.

All gold products purchased in stocks or options accounts can be stored at the Royal CanadianMint or the physical gold can be shipped. The purchaser will incur any applicable deliverycharges.

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Gold Stocks:

Participation in gold stocks is exposure to companies that are either operating a producing mine or arein active exploration of gold. The Toronto stock exchange is a world class exchange for the Mining Sectorand offers investors the ability to participate with international gold companies in Canadian currency.

Toronto Stock Exchange

Toronto Stock Exchange (TSX) and TSX Venture Exchange are leaders in the mining sector. More miningcompanies are listed on TSX and TSX Venture Exchange than any other exchange in the world. As aresult, we offer mining companies membership in the largest peer group of mining companies

anywhere, providing the benefits of premium valuations, visibility of transactions, analyst coverage,specialized indices and specifically tailored listing requirements.

Typically the Toronto Venture Exchange (used to be Vancouver Exchange) is the home of Explorationcompanies and the Toronto Stock Exchange is where larger estabilshed producers trade.

Standard & Poor have a Global Gold Index on the TSX.

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Mutual Funds:

Most investors will already has some exposure to gold stocks in one or more of their mutual funds. Butthere are some that are more specific.

Sprott

Gold and precious Minerals Fund

One gold fund of note is Eric Sprott’s Gold and Precious Metal Fund. The primary objective of this Fundis to provide long-term capital growth. In order to achieve its investment objective, the Fund investsprimarily in gold, gold certificates, precious metals and minerals, the certificates relating to such metalsand minerals and/or in equity securities of companies that are directly or indirectly involved in theexploration, mining, production or distribution of gold and precious metals and minerals.

There are about 35 different Mutual funds that have a Gold focus or partial gold focus and will offerexposure to the gold industry and the metal itself.

Exchange Traded Funds:

Gold ETF’s offer exposure to a basket of stocks and/or gold pricing that are traded on an exchange thusoffering the diversification of a mutual fund but without the management fees. Additionally there areongoing price changes as a stock on the exchange rather than the daily or weekly pricing of mutual fundunits.

Horizon BETAPRO ETF (registration required)

Bull plus or Bear plus (200% daily performance)

The Horizons BetaPro COMEX ® Gold Bullion Bull Plus ETF (HBP COMEX®Gold Bullion Bull+ ETF) and theHorizons BetaPro COMEX ®Gold Bullion Bear Plus ETF (HBP COMEX®Gold Bullion Bear+ ETF)seek dailyinvestment results equal to 200% the daily performance, or inverse daily performance, of COMEX ® GoldBullion, before fees and expenses. The HBP COMEX ®Gold Bullion Bull+ and Bear+ ETFs are denominatedin Canadian dollars, as the U.S. dollar exposure of the underlying index is hedged daily.

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Global Gold Inverse

The Horizons BetaPro S&P/TSX Global Gold Inverse ETF (HBP S&P/TSX Global Gold Inverse ETF) seeksdaily investment results, before fees, expenses, distributions, brokerage commissions and othertransaction costs, that endeavor to correspond to one times (100%) the inverse (opposite) of the dailyperformance of the S&P/TSX Global Gold Index™ .

Comex Gold

The Horizons BetaPro COMEX ® Gold ETF (HBP COMEX® Gold ETF) seeks investment results, before fees,expenses, distributions, brokerage commissions and other transaction costs, that endeavor tocorrespond to the performance of the COMEX ®gold futures contract for a subsequent delivery month.

Claymore

The Claymore Gold Bullion ETF seeks to replicate the performance of the price of gold bullion, less itsexpenses and fees. The assets of the Claymore Gold ETF consist primarily of physical gold bullion (the“Portfolio”) which the Claymore Gold ETF purchases and holds in accordance with its investmentobjective, strategy, policies and restrictions, as well as any forward contracts relating to the currencyhedge of the hedged common units, cash and permitted gold certificates, if any.

Ishares The iShares COMEX Gold Trust ("Gold Trust") seeks to correspond generally, to the day-to-daymovement of the price of gold bullion. The objective of the Gold Trust is for the value to reflect, at anygiven time, the price of gold owned by the Gold Trust at that time, less the expenses and liabilities of theGold Trust.

Also available on the Toronto Stock Exchange under trading symbol "TSE: IGT".

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Mining Nerds Sprott

Jim Sinclair Mineset

Flow-through Shares and Flow-through Limited Partnerships:

Flow-though describes how the Canadian Government offers 100% tax deductions for investment madein Canadian Resource Exploration companies. Especially mining exploration companies. This huge taxdecuction is designed to attract investors by providing incredible downside protection.

If an investor wants to have adiversified basket of resource companies but still get the tax decuctionsthen there are Flow-through Limited Partnerships that offer professional portfolio management. It is anattractive way to have exposure to companies that are involved in Gold exploration and although thereare not any Flow-through Limited Partnerships that focus completely on gold alone; the tax advantagesare still worth considering. I specialize in Flow-through investing and if you would like to know moreabout this tax advantaged investing stratigy please contact me directly at bd@popecompany.com . Ikeep my eye on about 30 different Flow-through Limited Partnerships and would be glad to help youfind the one that fits your requirements.

Great Online Resources for Gold and Gold Companies:

Kitco