By proceeding, I acknowledge that I have read and understood the Disclosure and Copywrite Statements.

Dear Clients:

I bought a 5% position in Streettracks Gold Trust (GLD) for your portfolios on Monday. GLD represents an investment in actual gold commodity futures, not stocks of gold mining companies. Gold acts as a hedge against inflation and as a safe haven from challenging economic conditions. I believe we’ve chosen an attractive entry point for a long-term investment in gold. GLD dropped a little on Monday and Tuesday, but gapped up 3% on heavy trading volume yesterday. It’s a very bullish sign when an investment trades significantly higher on heavier volume.

Your position in Ishares Silver Trust (SLV) has been moving up substantially over the last two weeks. If you recall, your portfolios have been long SLV for several months now and we have added to the position a couple of times since the initial purchase. Silver is similar to gold in that it should act as an inflation hedge and a safe haven under difficult economic circumstances. However, unlike gold, Silver also has a variety of industrial uses beyond the jewelry trade. Currently, there is a shortage of physical silver to meet industrial demand and it could be years before the imbalance is resolved. For these reasons, I’m a strong believer in the investment merits of silver. Yesterday, SLV rose almost 5% on twice the average daily trading volume, a very bullish sign indeed.

As with any investment, GLD and SLV will not appreciate in a linear fashion. Be prepared to endure some volatility along the way.

Greg

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