Day 1- Session 3: Precious Metals Sector Gold & Silver Outlook Objective Capital Global Mining Investment Conference 2010 Stationers' Hall, City of London 28-29 September 2010 Speaker: Arthur Vestey - Cheviot Asset Management

1. day 1 - session 3: Precious Metals sector Gold & Silver OutlookArthur Vestey– Investment Manager,Cheviot Asset Management

2. GLOBAL MININGINVESTMENT CONFERENCE 2010 Lead sponsors: Media partners: Other sponsors & participating organisations:

3. 3 Gold & Silver Outlook Arthur Vestey Cheviot Asset Management 28th September 2010 3

4. 4 10 Year Gold & Silver GOLD SILVER Source: Bloomberg

5. 5 Why Silver ?

6. 6 The History of Silver

7. 7 Gold/ Silver Ratio 2007-2010 Source: Bloomberg

8. 8 Silver Usage “Silver is the best technology stock you can own” David Morgan

9. 9 Gold/ Silver Availability

10. 10 Gold & Silver Bubble?

11. 11 Gold vs NASDAQ Secular Bull Market Comparison Source: Bloomberg

12. 12 Diminishing Marginal Productivity of Debt in the US Economy (in Dollars) “You can’t bail out debt with debt”

13. 13 USD Purchasing Power 1971-

14. 14 Alan Greenspan Quotes 1966: “In the absence of the Gold Standard, there is no way to protect savings from confiscation through inflation. There is no safe store of value... deficit spending is simply a scheme for the confiscation of wealth. Gold stands in the way of this insidious process.” 2009: “The rise in gold and silver is strictly a monetary phenomenon and is an indication of the very early stage of an endeavour to move away from paper currencies’.” 2010: “Fiat money has no place to go but gold…If all currencies are moving up or down together, the question is: relative to what? Gold is the canary in the coal mine. It signals problems with respect to currency markets. Central banks should pay attention to it.”

16. GLOBAL MININGINVESTMENT CONFERENCE 2010 Lead sponsors: Media partners: Other sponsors & participating organisations: