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GOLD AND SILVER BULLION

3 Months Ended

Mar. 31, 2012

NOTE 4 GOLD AND SILVER BULLION

The Company invested a portion of its cash in physical gold and silver bullion. Below is the balance of its holdings of gold and silver as at March 31, 2012 and December 31, 2011.

	March 31, 2012				December 31, 2011
	Gold		Silver		Gold		Silver
	(dollars in thousands, except ounces and per ounce)
# of ounces	4,034		452,952		5,656		552,812
Average cost per ounce	$	1,278.63	$	28.18	$	1,278.63	$	28.18
Total cost	$	5,158	$	12,765	$	7,232	$	15,579
Fair value per ounce	$	1,662.50	$	32.43	$	1,574.50	$	28.18
Total fair value	$	6,707	$	14,690	$	8,905	$	15,579

The fair value of gold and silver was based on the daily London P.M. fix as at March 31, 2012 and December 31, 2011. Since ASC Topic 815 does not consider gold and silver to be readily convertible to cash, the Company carries these assets at the lower of cost or market.

During the first quarter of 2012, the Company sold 1,622 ounces of gold and 99,860 ounces of silver with a cost of $2.1 million and $2.8 million, respectively. Changes in the Company’s holdings of gold and silver for the three months ended March 31, 2012 and year ended December 31, 2011 are as follows (in thousands):

	Three Months Ended March 31,									Year Ended December 31,
	2012									2011
	Gold			Silver			Total			Gold			Silver			Total
Opening Balance	$	7,232		$	15,578		$	22,810		$	4,569		$	—		$	4,569
Purchases	—			—			—			7,387			23,912			31,299
Proceeds from sale	(2,732		)	(3,564		)	(6,296		)	(6,218		)	(5,521		)	(11,739		)
Gain on sale	658			750			1,408			1,494			581			2,075
Unrealized loss	—			—			—			—			(3,394		)	(3,394		)
Ending Balance	$	5,158		$	12,764		$	17,922		$	7,232		$	15,578		$	22,810