Risks

Market Fluctuation

Investment in the Company should be regarded as a long-term investment. There can be no guarantee that the investment objective of the Company, set out above will be achieved. The Company’ investments are subject to normal market fluctuations and the risks inherent in all investments and there are no assurances that capital appreciation will occur. The price of Shares and the income from them (if any) can, from time to time, go down as well as up and investors may not realize the amount of their initial investment. In particular, deduction of the initial charge (where applicable) means that if an investor withdraws from the investment in the short-term he may not get back the amount he invested.

Exchange Rate Risk
Currency fluctuations between the Base Currency of the Company, and, (i) the investor’s currency of reference, and, (ii) the currency of the underlying investments of the Company, may adversely affect the value of investments and the income derived therefrom.

Investments in smaller companies
The Company may invest in the securities of smaller companies. Investments in the securities of smaller companies can involve greater risk than is customarily associated with investment in larger, more established companies. In particular, smaller companies often have limited product lines, markets or financial resource and may be dependent for their management on one or two key individuals. This may result in investments in such markets being volatile.

Lack of diversification
Since the Company will be investing mainly in listed equities in the precious metals industry, and in particular in the gold industry, the reduced sectarian diversification of the underlying assets of the Company is to be considered as a risk in itself and the Company is particularly susceptible to trends in the precious metals industry worldwide.

Erosion of capital
When an investor redeems part of his/her holding he/she should be aware that these redemptions will be made from the sale of Shares and may result in an erosion of capital.

Sector risks
Investments in the precious metals sector are associated with considerable risks.

General
Any investor who is in any doubt about the risks of investing in the Company should consult his or her own stockbroker or other financial advisor.