NOTE 5 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 December 31, 2012 and 2011:

	2012				2011

	Gold		Silver		Gold		Silver
	(dollars in thousands, except ounces and per ounce)
# of ounces		793		24,969		5,656		552,812
Average cost per ounce	$	1,278.63	$	27.08	$	1,278.63	$	28.18
Total cost	$	1,014	$	676	$	7,232	$	15,578
Fair value per ounce	$	1,657.50	$	29.95	$	1,574.50	$	28.18
Total fair value	$	1,314	$	748	$	8,905	$	15,578

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

During 2012, the Company sold 4,863 ounces of gold and 527,843 ounces of silver with a cost of $6.2 million and $14.5 million, respectively, resulting in an overall gain of $3.1 million.

Changes in the Company's holdings of gold and silver for the years ended December 31, 2012 and 2011 are as follows (in thousands):

	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		(7,982	)		(15,854	)		(23,836	)		(6,218	)		(5,521	)		(11,739	)
Gain on sale		1,764			1,311			3,075			1,494			581			2,075
Unrealized loss		—			(359	)		(359	)		—			(3,394	)		(3,394	)

Ending Balance	$	1,014		$	676		$	1,690		$	7,232		$	15,578		$	22,810