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THE FUND’S RISK – RETURN RATIO

The graphs of gold and the Gold/Silver Index:Philadelphia Stock Exchange demonstrate clearly that mining shares are more volatile than the underlying metals.

During the financial crisis of 2008,the gold price declined 26% only. The Gold/Silver Index:Philadelphia Stock Exchange however dropped 70%. During the following recovery the gold price moved up 165% while the Gold/Silver Index:Philadelphia Stock Exchange jumped 215%.On the other hand, silver prices are more volatile than gold prices for which reason silver shares are more volatile than gold shares.

After the three year correction of gold and silver prices and the resulting massive decline of the share prices, gold and silver stocks offer an outstanding opportunity.