Section I. Macro. Fig.1. Gold and US Real Rates

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1 Section I. Macro $1,8 $1,6 $1,4 Fig.1. Gold and US Real Rates US Real Rates Gold ($/Oz) % 1% 1% 3% $5, Fig.2. Fed Balance Sheet ($B) $4,5 $4, $3,5 $3, $2,5 $1,5 $ ,6 Fig.3. Gold and ECB Real Rates 1,4 1,2 1, Gold ( /Oz) ECB Real Rates % 1% 1% 3% 4, Fig.4. ECB Balance Sheet ( B) 3,5 3, 2,5 2, 1,5 1, , 12, 1, 8, 6, 4, 2, Fig.5. Gold and PBC Real Rates PBC Real Rates Gold ( /Oz) % 6% 4, Fig.6. PBC Balance Sheet ( B) 35, 3, 25, 2, 15, 1, 5,

2 Section I. Macro $2 $18 $16 $14 $12 $1 $8 $6 $4 Fig.7. The Biggest 6 Central Bank Balance Sheets US, UK, Japan, China, EU & Switzerland (US$T) Fig.8. Gold and M2 (US$B, Fed, ECB & PBC) $6 Gold $4 M2 $ $1,5 $ Fig.9. US M1 YoY% Fig.11. ECB M1 YoY % Fig.13. PBC M1 YoY % Fig.1. US M2 YoY% 1 8% 6% Fig.12. ECB M2 YoY % 1 8% 6% Fig.14. PBC M2 YoY %

3 Section I. Macro $25 Fig.16. US National Debt ($T) Fig.15. Inflation February 217 US Euro Area China Headline CPI Core CPI n/a Shadowstats 1.2 n/a n/a, Shadow Government Statistics. $2 $15 $1 $ Source: TreasuryDirect.gov, USDebtClock.org 12 Fig.17. Total Pubic Market Debt as % of GDP Source: Stlouisfed.org $21 Fig.18. The Debt Ceiling ($T) $2 $19 $18 $17 $16 $15 $14 Total Federal Debt Debt Ceiling Limit $ Fig.19. Average Annual Interest Rate on US Debt Source: US Treasury, Meridian Macro Fig.2. Interest Expense as % of Total Government Outlays ; US Treasury 3

4 Section I. Macro $1,7 Fig.21. Global Forex Accumulation (US$B, 12 month sum) $ $3 ; MacroMavens, LLC Fig.22. Net Purchases of US Treasury Notes and Bonds by All Foreign Countries (US$B, 12 month sum) Source: US Treasury; MacroMavens, LLC $26 $22 Fig.23. China Net Purchases Long Term US Securities (annual US$B) $18 $14 $1 $6 $2 $ Source: US Treasury; MacroMavens, LLC 4

5 Section II. Gold Fig.24. Gold Supply and Demand (tonnes) Supply Mine production 2,591 2,592 2,478 2,55 2,481 2,476 2,49 2,584 2,739 2,827 2,848 3,19 3,114 3,186 3,236 Old gold scrap , ,217 1,672 1,723 1,669 1,626 1,371 1,122 1,93 1,39 Traditional supply 3,426 3,536 3,37 3,436 3,588 3,432 3,626 4,257 4,463 4,495 4,473 4,39 4,236 4,279 4,545 Net producer hedging Official sector sales Total supply 3,559 3,874 3,359 4,12 3,582 3,472 3,513 4,34 4,355 4,55 4,453 4,34 4,278 4,258 4,571 Demand Jewellery 2,68 2,522 2,673 2,77 2,283 2,45 2,187 1,76 2,17 1,972 1,98 2,198 2,153 2,455 2,42 Other Total fabrication 3,4 2,97 3,89 3,138 2,741 2,867 2,623 2,134 2,483 2,425 2,336 2,63 2,542 2,786 2,687 Bar & coin retail investment ,25 1,519 1,256 1,654 1,64 1,12 1,29 Official sector purchases ETFs & similar Implied net investment Total demand 3,559 3,874 3,359 4,12 3,582 3,472 3,513 4,34 4,355 4,55 4,453 4,34 4,278 4,258 4,571 Source: World Gold Council Fig.25. Market Value of Above Ground Gold as % of Total US Financial Assets 21.8% 19.6% Millions of Ounces Source: Federal Reserve, World Gold Council Fig.26. Gold Held by ETFs All ETFS SPDR Trust Oct 3 Oct 5 Oct 7 Oct 9 Oct 11 Oct 13 Oct 15, Company Filings. 5

6 Section II. Gold Fig.27. SPDR Gold Trust Ownership by Type Investment Adviser, 19.9% Broker, 4.6% Non Institutional, 6.7% Insurance Company,. Mutual Fund,.8% Private Banking, 6.6% Pension Fund, 1. Hedge Fund, 5.8% Source: FactSet Fig.28. Notable Transaction in Oct 216 (YTD) Country Tonnes Transaction Russia 128 Purchase Turkey 73 Decrease China 76 Purchase Source: World Gold Council Fig.29. Central Banks Net Purchases (tonnes) Source: World Gold Council 34, Fig.3 Central Banks Holdings of Gold (tonnes) 33,5 33, 32,5 32, 31,5 31, 3,5 3, 29, Source: World Gold Council 1 Fig.31. Gold as % of Total Reserves 13% 1 11% 1 9% 8% 3/ 3/2 3/4 3/6 3/8 3/1 3/12 3/14 3/16 Source: World Gold Council 6

7 1 Section II. Gold Fig.32. Web searches for "Gold Bubble" Sep 7 Sep 8 Sep 9 Sep 1 Sep 11 Sep 12 Sep 13 Sep 14 Sep 15 Sep Source: GoogleTrends Fig.33. Web searches for "Gold Investment" Oct 4 Oct 5 Oct 6 Oct 7 Oct 8 Oct 9 Oct 1 Oct 11 Oct 12 Oct 13 Oct 14 Oct 15 Oct 16 Source: GoogleTrends 1 Fig.34. Bernstein's Daily Sentiment Index $1,8 8 $1,6 $1, DSI Gold Source Bloomberg, Bernstein's DSI 1. Fig.35. Market Vane Sentiment Index 8. $1,8 $1,6 6. $1, MV Gold Source Bloomberg, Market Vane 7

8 Section II. Gold 2, 1,8 1,6 1,4 1,2 1, Fig.36. Comex Gold Futures Open Interest (tonnes) Open Interest Gold ($/Oz) $1,8 $1,6 $1, Fig.37. Gold vs Continuous Commodity Index Performance CCI Index Gold Net Large Speculators Net Hedgers/Commercials Gold ($/Oz) Fig.38. Comex Gold Futures Activity (tonnes) $1, $5 1,2 Source: CFTC Fig.39. Commercial Net Shorts as % of Total Open Interest Net Short/Open Interest Gold More Net Short Less Net Short 7/1 7/11 7/12 7/13 7/14 7/15 7/16 ; The McClellan Market Report $1,8 $1,6 $1,4 $ Millions of Ounces Fig. 4. Registered COMEX Gold Stocks vs. Owners per Ounce Registered Stocks Owners per Ounce

9 Section III. Gold Mining Equities Fig.41. XAU and HUI as a Ratio of Gold HUI/Gold XAU/Gold Source: FactSet $8, $6, $4, $4, Fig.42. Net Fund Flows For Lipper's Equity Precious Metals Fund Universe ($M) 1H7 2H7 1H8 2H8 1H9 2H9 1H1 2H1 1H11 2H11 1H12 2H12 1H13 2H13 1H14 2H14 1H15 2H15 1H16 2H16 Source: Morningstar 2H16 is through 12/31/16 $18 $16 $14 $12 $1 $8 $6 $4 $2 Fig.43. Market Cap of Van Eck Gold Equity ETFs ($B) 5/6 5/7 5/8 5/9 5/1 5/11 5/12 5/13 5/14 5/15 5/16 Source: FactSet $16 $14 $12 $1 $8 $6 $4 $2 Fig.44. Equity Capital Issued by Gold Miners $B of Equty Issued # of Transactions

10 Section III. Gold Mining Equities 1 8% 6% 6% 8% 1 Fig.45. Senior Producers Return On Capital Source: FactSet. Universe: NEM, ABX, GG, KGC, AUY, NCM, AU, GFI, HMY Fig.46. Average Cost of Acquisitions in the Gold Sector ($/Oz) Acquisition Cost As Ratio of Gold Price Source: RBC Capital Markets, Bloomberg $1,4 Fig.47. Gold Mining Industry Production Costs After Tax Cash Cost ($/oz) Margin (%) E After Tax Cash Cost ($/oz) ,1 1, Margin (%) 23% % 3 21% % 3 23% % Source: Tocqueville Asset Management, FactSet. 1

NAV Premiums Senior & Intermediate Producers (N.A.) Source: BMO Capital Markets Fig.5.

11 Section III. Gold Mining Equities Fig.48. Gold Price Discounted by Market ($/Oz) Source: BMO Capital Markets Fig.49. NAV Premiums Senior & Intermediate Producers (N.A.) Source: BMO Capital Markets Fig.5. P/CF Universe of Coverage Average Fig.51. Adjusted Market Cap per Oz of Resource Divided by Gold Price Source: Scotiabank Source: Scotiabank 11

Section I. Macro 5% 4% 3% 2% 1% 0% -1% -2% -3% -4% -5% 4,000 3,500 3,000 2,500 2,000 1,500 -1% 1,000 -2% -3% 14% 12% 10% 8% 6% 4% 2% 0% -2% 35,000

Section I. Macro 5% 4% 3% 2% 1% 0% -1% -2% -3% -4% -5% 4,000 3,500 3,000 2,500 2,000 1,500 -1% 1,000 -2% -3% 14% 12% 10% 8% 6% 4% 2% 0% -2% 35,000 Section I. Macro $1,8 $1,6 $1,4 Fig.1. Gold and US Real Rates US Real Rates Gold ($/Oz) 2 22 24 26 28 21 212 214 216 3% 1% -1% - -3% - - $5, Fig.2. Fed Balance Sheet ($B) $4,5 $4, $3,5 $3, $2,5 $1,5 $5