NOTE 4 GOLD AND SILVER BULLION INVESTMENTS

From time to time, the Company invests 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, 2013 and 2012:

	2013				2012

	Gold		Silver		Gold		Silver
	(dollars in thousands, except ounces and per ounce)
Number of ounces		—		—		793		24,969
Average cost per ounce		n/a		n/a	$	1,278.63	$	27.08
Total cost	$	—	$	—	$	1,014	$	676
Fair value per ounce		n/a		n/a	$	1,657.50	$	29.95
Total fair value	$	—	$	—	$	1,314	$	748

The fair value of gold and silver was based on the daily London P.M. fix as at the reporting date. Since ASC Topic 815, Derivatives and Hedging, 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 year ended December 31, 2013, the Company sold its remaining holdings of gold and silver bullion. The Company recorded a realized loss of $0.2 million on its gold and silver bullion, as a result of its average cost of $1,278.63 and $27.08 per ounce, respectively, being lower than its selling price of $1,245.70 per ounce of gold and $19.18 per ounce of silver at the time of the sale.

Changes in the Company's holdings of gold and silver for the year ended December 31, 2013 and 2012 are as follows:

	2013									2012

	Gold			Silver			Total			Gold			Silver			Total
	(in thousands)
Opening Balance	$	1,014		$	676		$	1,690		$	7,232		$	15,578		$	22,810
Proceeds from sale		(988	)		(479	)		(1,467	)		(7,982	)		(15,854	)		(23,836	)
(Loss) gain on sale		(26	)		(197	)		(223	)		1,764			1,311			3,075
Unrealized loss		—			—			—			—			(359	)		(359	)


Ending Balance	$	—		$	—		$	—		$	1,014		$	676		$	1,690