Global gold ppt

Page 1 © Global Gold Inc. All rights reserved.

So you own physical gold and silver… Are you sure!?Presented by Frank R. Suess, CEO & Chairman

Q-Wealth Symposium, Cork, Ireland, September 2010

The Global Gold Precious Metals Program Swiss-Based Physical Precious Metals – Safe, Convenient, Competitive!

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What the Global Gold program offersPlain and simple, but not easy…

A safe, convenient and efficient way to buy, store, sell, and/or deliver allocated bullion gold, silver, platinum and palladium bars and coins in Switzerland.

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Safety, Convenience AND EfficiencyPlain and simple, but not easy…

• Safety First…– Metals physically yours– Allocated, investment grade bullion only– Storage in Switzerland, class A1 security vaults– Fully insured and audited– A non-bank solution

• Convenience next…– First-class advice and service from your accredited Program Dealer of

choice – Physical deliveries within Switzerland or international at any time– All transactions can promptly initiated without personal presence

• Efficiency too…– Fair and transparent product pricing – No VAT (Swiss Value-Added Tax)– Prompt, on-time processing – Swiss style…

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Why allocated? Why now? Because of big picture realities, such as EASY MONEY

The main culprit of today‘s fundamental imbalances is „EASY MONEY“. Europe and some other nations have recognized this and are attempting a return to „AUSTERITY“.

But, America is not: „QUANTITATIVE EASING“ is still the preferred panacea!

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Why allocated? Why now? Because of big picture realities, such as the GOLD TREND

For the past 10 years(!!), people have been asking: Is this the right time to invest in gold? Should I Buy Gold Now, or Wait For a Pullback?” ...

They are still asking...

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Why allocated? Why now? Because of big picture realities, such as SILVER MOMENTUM

Silver, still in an upward trend, interesting ratio to gold (approx. 1 :60!!) – and a cheaper kind of „Real Crisis Money“.

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Why allocated? Why now? Because of big picture realities, such as the NON-RECOVERY

Fundamental economic data (the real data) for the American economy is dismal and not promising. The stock market reflects that reality.

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Why allocated? Why now? But company earnings are so positive!

Why are we concerned about a crisis when company earnings are so positive and stock markets have held up so well?

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Proper precious metals ownershipOwning it “the right way”… Why, how, when…?

• Unallocated programs?• Claim status or ‘digital’ ownership may work for some

investors. Does it work for you? – Bank metal accounts?– Precious metals certificates?– Mutual funds?– Structured products: ETCs, ETPs, ETFs?– The unallocated version of the Perth Mint Certificate

• The “back-yard” approach?• A safe deposit box?• Online allocated programs?• Other allocated programs?

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What‘s so bad about a gold ETF? Nothing per se. But it will not offer solid “crisis insurance”.

One of our clients asks this:

“What is so bad about gold ETF’s? While I agree with your doubts about their full backing, several ETF’s, even the GLD that you mention, have still mirrored the movement of gold prices fairly well. They are easy to buy and sell. And, the costs involved are lower than any of the physically allocated programs I know of.”

=> As of August 31st, 2010, the fund was valued at a total of US$ 52 Billion(!!). It is a financial product constructed and run by JP Morgan, HSBC and other big Wall Street financial institutions. There are quite a few other gold ETFs like GLD. Therefore, it makes perfect sense to take a closer look at the GLD ETF in particular.


Ten reasons why you don‘t want GLD – or other similar ETFs

1. Dependence on the New York Stock Exchange 2. The fund does NOT allow in-kind redemptions of its gold bullion 3. GLD does NOT appear to have storage issues 4. The GLD gold holdings are NOT audited 5. The gold holdings of GLD (if there were any?) are NOT insured 6. The quality of the gold is NOT confirmed 7. The gold is NOT protected from the custodian’s insolvency 8. GLD does NOT exclude the possibility of leasing, short selling or

pledging the gold that it (supposedly) has in storage 9. GLD is NOT protected from the whims of US government 10. GLD is is created and run by Wall Street, by JP Morgan, HSBC, and

other big financial institutions who have given us subprime CDOs etc. Remember: “as-good-as-cash” securities… and then the market for auction rate securities collapsed last year.


A whiff of GLD terms & conditions GLD – No Guarantees. All risks borne by investor!

Source: Prospectus SPDR® Gold Trust


A whiff of GLD terms & conditions (continued)GLD – No Guarantees. All risks borne by investor!

Source: SEC Form 10-K, September 30th 2009


So what about the ZKB Exchange Traded Funds?The ZKB precious metals ETFs are generally solid…

We consider the ETFs issued by ZKB as generally solid:

• The fund is (largely) backed by physical metals, “good delivery bars”, as defined by the LBMA

• All four precious metals are offered: gold, silver, platinum, palladium

• It is covered by audits and insurance• No Leasing and pledging • Minimal tracking errors• Fees relatively transparent (at least in the unhedged USD

classes)• ZKB, the third largest Swiss bank, is financially sound and comes

with a cantonal guarantee.


Drawbacks of ZKB Exchange Traded Funds… but it too has some typical flaws of an ETF

However, you don‘t really OWN precious metals:

• As with every ETF, you own units, fractions of a bullion bars, not distinctly allocated product

• In the case of gold, physical delivery is limited exclusively to the format of 12.5 kilo bars (currently worth approx. CHF 500‘000)

• The ZKB ETF is a bank solution and therefore subject the risks of a financial crisis; the related transactions (buy, sell, deliver) are subject to a functioning exchange

• No guarantee of physical delivery; other formats only provided if posseble and they are subject to delays, fabrication costs and other fees

• Like all ETFs, the ZKB ETF also has cash settlement clauses in crisis situations(!!)


Terms for in kind deliveriesWhat are your chances of prompt physical delivery?

In normal times, you might possibly get physical delivery of your metals. In a crisis situation, the chances of physical delivery are very limited… !!

„Die Fondsleitung kann im Interesse der Gesamtheit der Anleger die Rückzahlung der Anteile vorübergehend und ausnahmsweise aufschieben, wenn:

(a)Der Goldhandel in New York, welcher Grundlage für die Bewertung des Fondsvermögens bildet, geschlossen ist oder wenn der Goldhandel in New York beschränkt oder ausgesetzt ist;

(b)Ein politischer, wirtschaftlicher, militärischer, monetärer oder anderer Notfall vorliegt;

(c)Wegen Beschränkungen des Devisenkurses oder Beschränkungen der Übertragung oder Veräusserbarkeit von Gold oder flüssigen Mitteln Geschäfte für den Anlagefonds undurchführbar werden;

(d)Zahlreiche Anteile gekündigt werden und dadurch die Interessen der übrigen Anleger wesentlich beeinträchtigt werden können.Source: ZKB Gold ETF Offering Memorandum

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10 reasons why Global Gold is 100% different! GG Terms & Conditions are nothing like an ETF!

• 100% physically yours! • 100% allocated!• 100% insured!• 100% audited!• 100% deliverable at any time!• 100% investment grade bullion coins & bars! • 100% tax-free! • 100% non-bank!• 100% free of back-alley cash settlement clauses!• 100% Swiss!

When we are asked why Switzerland? Or, why Global Gold?We ask, what else?


Who Is Global Gold? Corporate profile

• Founded and registered as a Swiss Corporation in 2008

• Commercial registration number CH-170.3.032.562-5

• Regulated by Swiss Financial Market Authority (FINMA) via VQF membership; registration number 12808. 70% subsidiary of BFI Capital Group AG, a Swiss financial services group in business since 1991

• 20% of the company shares are held by two strategic partners in Switzerland

• 10% are held by two private international investors

• The Global Gold Management combines some 50 years of experience in the realm of international wealth management and precious metals investing.


Sample of Available FormatsA complete and current list of products is available upon request

Our Program Dealers can help you with specific details and advice on pricing, product availability or other relevant market conditions.

Metal Format Fineness Minimum lot size

Gold 1ozt South African Krugerand 916.6 / 1000 10

Gold 1 ozt Canadian Maple Leaf 999.9 / 1000 10

Gold 1ozt American Eagle 916.6 / 1000 10

Gold 100g Gold Bar 999.9 / 1000 1

Gold 250g Gold Bar 999.9 / 1000 1

Gold 1000g Gold Bar 999.9 / 1000 1

Silver 1000g Silver Bar 999 / 1000 1

Platinum 1000g Platinum Bar 999.5 / 1000 1

Palladium 1000g Palladium Bar 999.5 / 1000 1


Global Gold Standard Fee ScheduleLive quotes and proper pricing comparisons are best obtained from your Global Gold Program Dealer

Client Aggregate Purchases (CHF) Purchase Brokerage Fee % Liquidation Brokerage Fee %

50’000 and more 3.00 1.50

100’000 and more 2.50 1.25

500’000 and more 2.00 1.00

1’000’000 and more 1.50 0.75

5’000’000 and more 1.00 0.50

PURCHASE & LIQUIDATION FEES

ANNUAL STORAGE FEESClient Aggregate Purchases (CHF)

Gold, Platinum & Palladium

Silver

50’000 and more 0.75% 1.50%

250’000 and more 0.70% 1.40%

500’000 and more 0.65% 1.30%

1’000’000 and more 0.60% 1.20%

2’500’000 and more 0.50% 1.00%

5’000’000 and more 0.40% 0.80%

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Three simple steps to get startedReally, all you need to do is call your Program Dealer…

1. Contact your preferred Program Dealer

2. Submit your Client Application Form

3. Place your first Purchase Order– Complete and submit the Purchase Order– Wire the funds to Global Gold– Your purchase will be confirmed upon execution with a Transaction

Confirmation statement; you can access all details online– When your metals have been delivered to and stored in the vault, you

will receive your first Storage Report; you can access it online.

Congratulations! You are now the proud owner of Global Gold metals, stored safely and privately in the confines of Switzerland.

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Thank you for your attention!

© Global Gold Inc. All rights reserved.

Contact Details: GLOBAL GOLD AGHerrengasse 9

CH-8640 Rapperswil

Tel. +41 58 810 1750Fax +41 58 810 1751

E-mail [email protected]

WWW.GLOBALGOLD.CH

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Global gold ppt