Silver Bullion

P. ZIHLMANN INVESTMENT

MANAGEMENT AG

Your independent Swiss asset manager
THE TIMELESS PRECIOUS METAL FUND
THE TIMELESS ENERGY FUND
THE SIERRA MADRE GOLD AND SILVER VENTURE CAPITAL FUND

SILVER: BUY NOW! UP-DATE N° 25 / FEBRUARY 27, 2013
Silverinstitute
Silver/Ounces in US$
Buy Date

Amount/oz.

Buy Price

Total (USD)

November 15, 2002

10'000.00

4.54

45'400.00Total

10'000.00

4.54

45'400.00

Price Today

Value Today

29.20

292,000

Profit

246,600

Profit (in %)

543%

OUR LONG-TERM RECOMMENDATION

BUY

OUR SHORT-TERM RECOMMENDATION

BUY

1980 to 2013: From bear to bull

THE CONSOLIDATION
SHOULD SOON BE
OVER!

A LOSS OF 93% FROM
HIGH TO LOW!

A GAIN OF 1,100%
FROM LOW TO HIGH!

In 1980, the price of oneounce of silver reached $ 50. Today, the purchasing power of the US
dollar is substantially less than in 1980.
The price of one ounce of silver would have to rise to $ 150 to reflect the value of the US dollar
thirty years ago, assuming an average annual inflation of 3.5%.
During the financial crisis of 2008, the silver price corrected 57% from the high of $ 20.79 down
to $ 8.95. This correctionwas followed by a spectacular rise of more than 400% to $ 48.42. A
correction was inevitable and a drop of 42% followed that phenomenal rise.
So far, the silver price has recovered 6%, holding above the low of $ 26.43 reached last June.
The next up-leg is expected to start any time and should lead the silver price to a new all-time
high – most likely this year.

P. ZIHLMANN INVESTMENTMANAGEMENT AG

The long-term picture of the silver price

AVERAGE UP-SWING
AFTER THE CORRECTIONS OF
2004, 2006 AND 2008:
242%

UP 440%

DOWN
42%
DOWN
56%

DOWN
33%

DOWN
35%

AVERAGE DOWN
42%

OPPORTUNITIES TO SELL

OPPORTUNITIES TO BUY

The bull market of the silver price started towards the end of 2002. On the way from $ 4.02 to the
recent high of $ 48.42 (anincrease of 1,100%), several significant corrections took place, the most
severe one in 2008 when the silver price sank by 56% only to jump 440% to a new high since the bull
market started. We expect a similar move from the present base building as we had experienced from
November 2008 to May 2011 as demand for silver, both investment and industrial, is rising strongly.
The short-term picture of thesilver price

The short term view shows the oversold situation the silver price currently is in. A quick recovery over
$30/oz. seems reasonable.

2

P. ZIHLMANN INVESTMENT

MANAGEMENT AG

The Gold / Silver-Ratio

GOLD/SILVER RATIO:
CLOSE TO THE LONGTERM AVERAGE

FEAR
HOPE

In times of a crisis, as in 2008, gold tends to perform better than silver. In times of confidence orhope,
as at the end of 2010, silver fares better. At present, the gold/silver ratio is in neutral territory as
investors feel uncertain as to which way the major economies will evolve.
As the major European countries struggle to control the debt bubble, some confidence may creep
back into investors’ sentiments which could then cause the gold/silver ration to fall back towards the
40 point level.This would cause the silver price to rise toward the $ 40/ounce level with the gold price
remaining at the present level of $ 1,580. Should gold rise to $ 2,000 (not an unrealistic scenario), the
silver price could move back to the $ 50 level.

2006 to now:
Gold up 135%

2006 to now:
Silver up 115%

Gold and silver shares have massively underperformed
the prices of the metals. Webelieve that a rerating of
the gold and silver shares is imminent!

BUYING OPPORTUNITES

Yet charts reveal excesses which are bound to be corrected!
Gold- and silver shares should offer a similar outstanding performance as during the period of 2008 to
2011. The time to buy our funds is now (www.timeless-funds.com).

3

P. ZIHLMANN INVESTMENT

MANAGEMENT AG

The present correction...