1. SPECIAL ADVERTISING SECTION
some kind of financial crisis,”
says Gregg Fisher, chief invest-
ment officer at Gerstein Fisher.
“That’s when it’s nice to have
gold in your portfolio.”
Nice may be an understate-
ment. Since the recession
began, gold has risen at an
average annual rate of 18.9%,
according to Morningstar. That
trounces stocks (1.1%) and real
estate (4.7%)—and even bonds
(11.9%), which have benefited
hugely from falling interest
rates. Going back further: If
you had invested $10,000 in
gold in 2000, it would be worth
$56,000 today.
Not everyone is convinced
that gold makes sense at
these prices. The metal has
fallen from more than $1,800
an ounce last year to around
$1,600. Warren Buffett has
counseled against investing
A Golden
in gold because “it just sits
there.” It has no earnings and
no yield. “Anyone watching from
Opportunity
Mars would be scratching their
head,” Buffett has said. New
research out of Duke University
argues that gold is not nearly as
effective a hedge against infla-
Diversifying by putting a portion of your tion as is commonly believed.
portfolio in gold is a smart long-term safety bet. Glittering
N
Allure
othing has or simply playing a trend, you But gold bulls are buoyed
risen faster may end up disappointed. But if by a number of factors. Just
than gold your goal is long-term diversifi- about everyone recognizes that
since the cation, today’s price shouldn’t gold is a good hedge against
financial be an obstacle. hyperinflation, which, thanks to
crisis. But Gold is that rare invest- record-low interest rates during
after a long run that began even ment that often goes up when the past half-decade, may be
before the economic meltdown, other things go down. During brewing. Meanwhile, commer-
is it too late to invest in the glit- the worst of the financial crisis cial demand, while down from
tering stuff? in 2008 and 2009, stocks fell a year ago, remains strong for
Most experts say no, it’s 48% and real estate investment things like jewelry and electron-
not too late—so long as you trusts fell 59%. But gold rose ics. And last year central banks
understand why you want to 13%. This safe-haven status is purchased 456 tons of gold, up
own gold in the first place. If one of the metal’s chief allures. from 77 tons the previous year,
you’re looking for a quick profit “Every decade or so, there is reports the World Gold Council.
S1 www.fortune.com/adsections

2. advertisement
The Midas Touch
Becoming a gold and silver producer puts
G
Santa Fe Gold Corp. on the fast track.
old has long been seen as a safe
holding for investors unnerved by a
rocky stock market. Investing in the
gold mining industry, however, is not
for the faint of heart. Among the major
and junior companies that define the
industry, depth of management, cost
structure, and portfolio quality sepa-
rate the successful businesses from the also-rans.
Santa Fe Gold Corp., based in Albuquerque, is a junior
miner that intends to establish itself as a major player in
the gold, silver, copper, and industrial minerals markets.
The company has a unique strategy that sets it apart from
competitors. For starters, Santa Fe’s entire mining portfo-
lio is located within the Southwest region of the U.S. Bigger
major global mining companies have access to gold and
silver reserves all over the world, but with that reach often
come unpredictable political and country risks, issues that
Santa Fe doesn’t face.
With its U.S.-based assets, the company’s goal, explains
president and CEO W. Pierce Carson, is to produce signifi-
cant cash flow from its precious metals holdings while creat-
ing a portfolio of quality exploration and develop-
ment projects. Santa Fe currently has four major
projects under way, the two biggest of which are
Summit Silver-Gold and Ortiz Gold, both located in
New Mexico.
In a market environment that has not been
kind to the stock price of any mining company,
the cash flow from Santa Fe’s Summit silver-gold
mine is another plus. The mine began commercial
production in April and is operating at 10,000 tons
per month. The processing plant, however, has
significantly greater capacity. The company aims
to fill that capacity with ore from its own properties
and from acquisitions. In addition, Carson says Santa Fe’s
production costs for mining its gold and silver are well below
the industry average. Combined with high market prices for
these precious metals, the company’s margins are attractive.
So far, Santa Fe is doing well with this formula. Results
for the fiscal year that ended in June show that revenues
grew 80% over the prior year, mainly because of increased
production at the Summit facility. Says Carson: “Explora-
tion is an important part of the company, but our business
model is different than a lot of the juniors in the sense that
we want to be a real producing company.”
santafegoldcorp.com

3. SPECIAL ADVERTISING SECTION
a coveted asset small institutions seeking to
broaden their portfolios beyond
is audited twice a year.
Gold-mining stocks carry
Gold’s steady rise in value stocks and bonds. “Most inves- a degree of risk that ETFs do
tors acknowledge there is a not. The mining company must
US$ RECORD HIGH place for gold but haven’t yet be able to dig and produce the
PER OZ. JAN. 21, ‘80
done anything about it,” says metal at a profit. But these
2,500 $2,491
Kevin Quigg, global head of ETF stocks also have certain ad-
strategy and consulting at State vantages. They’ve languished
YEARLY GOLD PRICE: Street Global Advisors. He be- for the past decade, and their
2,000 NOMINAL REAL
lieves that money will flow into prices probably do not reflect
gold ETFs for years to come. the value of gold they own that
The biggest gold ETF by far is still in the ground.
is State Street’s SPDR Gold “The stocks clearly have not
1,500
Shares (ticker: GLD), launched kept up with the rising price of
in 2004, with assets over $65 gold,” says W. Pierce Carson,
billion as of August 2012. Next CEO of Santa Fe Gold Corp.,
1,000 in line is the iShares Gold Trust which owns or is purchasing
$850 (ticker: IAU), with $9 billion in mines in New Mexico with an
assets, followed by a handful estimated 15 to 20 years of pro-
of smaller ETFs. The total U.S. duction. He says Santa Fe will
500
gold ETF market is about $78 be able to produce gold next
billion. Before these funds were year at a cost of $470 an ounce,
JUNE 29, ‘12 created, investors who wanted making his company among the
0 exposure to gold had to own most efficient, and able to turn
‘71 ‘75 ‘79 ‘83 ‘87 ‘91 ‘95 ‘99 ‘03 ‘07 ‘11 coins, gold mining stocks, or a nice profit even if gold prices
Sources: LBMA, Bureau of Labor Statistics, World Gold Council
commodities futures contracts. fall. “There is underlying value
Each of those options has costs in production companies like
and risks unrelated to the price ours with low costs,” he says.
Another key driver has been of gold. With gold coins, for “There is a lot of potential ap-
the emergence of gold-backed example, there is typically a preciation that you do not have
exchange-traded funds (ETFs), minting fee and a dealer markup with the ETFs.”
which have made the metal easy that together add 7% to 10% on Should you invest in gold
to buy and sell and are helping top of the spot price for gold. now? Owning the metal as
reel in a whole new category “ETFs have democratized a portfolio hedge is sound
of investor: individuals and the gold market,” says Jason strategy. Consider putting 3%
Toussaint, manag- to 10% of your assets in a gold-
ing director for the backed ETF like SPDR Gold
U.S. and invest- Shares. If you are looking for
America’s bounty:
ments at the World more potential pop, gold-mining
aerial view of a gold
mine in Utah Gold Council. With stocks may be a bargain at re-
SPDR Gold Shares, cent prices—though they prob-
an individual pays ably won’t rally until the global
the same fees that economy picks up. Consider
hedge fund manag- putting 5% of your portfolio in
ers and giant insti- a diversified precious-metals
tutions pay—about mutual fund.
0.4% of assets. A pullback is always possible.
laurel daunis-allen; Getty
The ETF is readily But with so much uncertainty
accessible because in the world—the Euro crisis,
it trades as a stock, mounds of global debt, seeds of
and it is backed by inflation—it might be smart to
physical gold in a own something that goes up when
London vault, which most other things go down.
S3 www.fortune.com/adsections

4. YOU DON’T GET A TIN WATCH
WHEN YOU RETIRE.
Everyone knows the best way to thank
someone for a lifetime of service is with a gift
made of gold.
Now it’s more accessible than ever, thanks
to SPDR ® Gold Shares. When you invest in
GLD, you get a precise way to add gold to
your portfolio. And you get an asset that
offers diversification potential because it’s
generally not tied to the ups and downs of
broad US equities.*
A gold watch may be in your future. But a
gold ETF is something you can have right now.
Scan the QR code with your smartphone to
visit spdrs.com/GLD for details.
*Source: Over the 10-year period ending June 30, 2011, gold’s correlation with
the S&P 500® has been -0.01 with 0 being uncorrelated and 1 being perfectly
correlated (StyleADVISOR, June 2011).
Important Information Relating to SPDR Gold Trust:
The SPDR Gold Trust (“GLD”) has filed a registration statement
(including a prospectus) with the Securities and Exchange Commission (“SEC”) for the offering to which this communication relates. Before
you invest, you should read the prospectus in that registration statement and other documents GLD has filed with the SEC for more complete
information about GLD and this offering. You may get these documents for free by visiting EDGAR on the SEC website at www.sec.gov or by visiting
www.spdrgoldshares.com. Alternatively, the Trust or any authorized participant will arrange to send you the prospectus if you request it by calling 1-866-320-4053.
ETF’s trade like stocks, are subject to investment risk, fluctuate in market value and may trade at prices above or below the ETF’s net asset value. Brokerage com-
missions and GLD expenses will reduce returns.
Diversification does not assure a profit and may not protect against investment loss.
Investing in commodities entails significant risk and is not appropriate for all investors.
“SPDR” is a registered trademark of Standard & Poor’s Financial Services LLC (“S&P”) and has been licensed for use by State Street Corporation. No financial product offered
by State Street Corporation or its affiliates is sponsored, endorsed, sold or promoted by S&P or its affiliates, and S&P and its affiliates make no representation, warranty or condi-
tion regarding the advisability of buying, selling or holding units/shares in such products. Further limitations that could affect investors’ rights may be found in GLD’s prospectus.
For more information: State Street Global Markets, LLC, One Lincoln Street, Boston, MA, 02111 • 866.320.4053 • www.spdrgoldshares.com.
Not FDIC Insured – No Bank Guarantee – May Lose Value
IBG-4542