FWTW, here you go. He still likes PM although as you can tell HE IS A FARMER AT HEART!

1/28/11 Notes from Don Coxe’s Institutional Investor Conference Call

· Began talking about huge sell off in PM and what does this mean for investors? Takes us back to last January (2010) to look at the charts. In the 1st half of the year we had falling GDP rates with the housing crisis getting worse and worse along with the bad political climate (Prez’s approval rates were falling). This meant that PM was a very good place to be especially since the other commodities were not that great. But then in the 2nd half of the year, the world changed. The Euro crisis stopped getting worse and starting getting better. Since gold was tied to the EURO there was an inverse relationship. Despite opposition from average voters, the elites got together and cobbled together a defense of the EURO which bottomed out and rallied. When that happened the PMs dropped. The growth of the emerging economies started to positively impact the other commodities. So now there are other commodities available for investment such as oil, grains, etc. Even natural gas is getting a re-look.

· Corn has since doubled along with soy, wheat and cotton. The agriculture sector became the “glamor sector.” People sold their PM and moved into grains.

· Demand for PM will come if people fear inflation or other fear factors once again emerge.

· US Mutual Funds switched from bonds to equities which mirrored economic activity growth. He calls this a “dramatic switch in perceptions.”

· Will January story continue into rest of the year? Talks about how the change in sentiment can be so much more dramatic with silver versus gold. Hedge funds had such a great year in gold because of the huge leverage they took. Those positions are now being unwound and they are looking for great opportunities elsewhere.

· Great pullback in gold, does this mean that the 10 year bull market is over? While gold was due for a pause, what we have learned is that when you have huge leveraged players the pause is much deeper than would otherwise be the case.

· He made a point of stating that in his opinion every investor should have some exposure to gold. He has a feeling that when Euro zone starts increasing its rates a lot of this optimism will evaporate. (He mentioned how at Davos Trichet when asked about inflation said theirs was around 1.9777%. This was humorous as he had always said they would have to do something if inflation got to 2%.) So sometime this year we may be facing a situation where European Central Bank and our Fed may have to face fuel and food inflation like the emerging countries are now fighting. So sometime this year gold and silver will go back to their original uses as inflation hedges.

· If we have economic growth continuing than PM will come back into vogue as inflation hedges. AND, if instead things start to fall apart, PM will come back as protection from implosion.

· Thinks the expected US GDP numbers will be scaled back.

· Not of the view that you give up the PM protection. When sentiment can change so dramatically and so fast you don’t want to be out and then trying to get back in.

· Gas in US is still lowest in the world. We have not seen the increase in grain prices yet into those gas prices. Inevitable too that we will have higher food prices. Such a large spread between the brent and WTI oil prices. If brent prices stay high then with such a large spread, oil will not be coming into the US from the middle east but will stay in Europe, etc. (Huge spread between brent prices and WTI price) US will be depending on Canadian oil sands in that case.

· Ag Secretary just removed the ban on genetically modified alfalfa. This could have a big impact as it could impact the whole spectrum of genetically modified seeds. This is a huge decision and he cannot stress enough what it could mean for the agriculture. It means that the greens were beat back. Nothing but good news ahead for agriculture. Thinks this is the best place to put your money. Fertilizers, farm equipment look good.

· There is new vulnerability in the Arab world as evidenced by all the rioting. These governments under attack have been the moderates that were allies of the western world. The real problem is the demographics of these countries where all the young people cannot get jobs. They blame their government for not providing economic growth. But if all these governments fail what will be left will only be foes of the US and western world.

· Question –I was flabbergasted by press report that Congress is actually considering allowing states to go bankrupt and if so won’t this be an incredible propellant for PM? Answer: As states want to sell bonds, we will start to get the real story on the financial status of states. This initiative came from the SEC not Congress per se. If states are technically broke they have to do a better job at informing investors. Don doesn’t think states will go bankrupt. But what we will have is big cut backs and layoffs of employees from these states which will be a drag on the economy.