Gold and Silver Stocks Account

A Brokerage account has been established with Pan American Capital Group of Panama. The purpose of the account is to maintain a portfolio of stocks (shares) in gold and silver mining companies for the benefit of Bullion Plus LLC and its members.

The Central American jurisdiction of Panama provides convenient access to both the US and Canadian stock exchanges.

Stocks are selected on the basis of some basic investment rules, being:

• That companies invested in by the Trustee will be “unhedged”.  (They will not have pre-sold reserves at a fixed price in the future.  This was a common practice during the long term bear market but works against producers in a bull market with rising prices.  Many hedged producers now are faced with supplying gold at a promised price well under the current and future cost of production);

• That companies invested in will be very strongly cash flow positive, with solid funding.  (We are not focussing totally on current and past profitability as companies come out of many years of life on the edge, but the potential to be profitable in the near and distant future);

• Be engaged in exploration and/or mergers and acquisitions to expand future reserves; and

• That realised profits will be held by way of either gold bullion and/or shares in the Central Fund of Canada, which is a company (traded on the stock exchange) which buys and holds gold or silver bullion.  (Bearing in mind the concerns about fiat currency, this ensures that the fortunes of the account are linked to the precious metals and not to bits of paper).

• That the stocks are purchased on a buy and hold strategy, with a view to strong long term gains with occasional profit taking when opportunities arise … and of course, those profits are held in bullion!