Precious Metals News 30 th July 2011

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1 Hello and welcome to the first CELTICGOLD newsletter. This free information is designed to inform you with the latest news in the precious metals markets and help to preserve your wealth. Three to four times a month you ll be informed about recent developments and in depth knowledge of the gold and silver markets. In addition to the in depth analysis, we also provide a bit of quirky stories about money. Each newsletter we will summarize the views from some of the top traders and technicians in the gold and silver market today. This week you ll find: - Markets: Gold and silver - Knowledge: VAT on silver coins in Europe - Story/Tale: How to pay with precious metals today two true stories We hope you enjoy reading this first newsletter and find the information Helpful and educational thank you for your time. All the best, Stefan Krämer Director CELTICGOLD Weekly update for the Gold Market Gold continued to show strength holding steady above the important $1610 technical level. Much of the positive action in the Gold Market this week has been due to the continuing sovereign debt crisis in Europe and the concern over the debt ceiling and the deteriorating fiscal condition in the US.

2 The fact that Gold is exhibiting such strength during the summer season, which is typically the slow season for the yellow metal is a very bullish sign for a possible major move up in the coming weeks and months. The next technical support level on the upside for Gold is the $ level. However we may have resistance as gold approaches the $1650 level. (Source for technical indicators: According to trader Dan Norcini who writes on Jim Sinclair s site we could see a pull back to as low as $1525 if we have some positive news come out of both the US and Europe as far as the debt situation is concerned. Should that happen a major buying opportunity would occur in our opinion. We expect that Gold price could move up rapidly in the fall months as the debt situation worsens in the US and in Europe. Our view at Celtic Gold is that regardless of what the Gold price does in the coming weeks do not sell any of your core physical metal. Continue to add to your holdings should we get a dip in price. We believe that the Gold bull market has much further to run. We will do our best to help you navigate the market and identify the best time to add to your positions. Update on the Silver Market Silver prices tend to be more volatile than Gold and therefore harder to forecast short term price movements. However the same factors driving Gold prices higher are also driving Silver prices higher. Silver has outperformed Gold during July and has shown strong resilience holding above $40/ounce. Keep in mind that should we have

3 some weakness in the Gold price in the month of August, Silver will likely decline more than Gold in percentage terms. Silver investors should not panic if this occurs as the long term fundamentals are just as strong if not stronger than the Gold market. Just as with Gold, should we have a bit of a pull back in Silver during August this would be a buying opportunity in our opinion. We will likely see much action in the Gold and Silver markets next week as the debt ceiling issue in the US comes to a head. Knowledge: VAT on silver coins In the old days, silver and gold was equally used as legal tender. But that got changed in 1800 s by the British government. If you wish to buy silver, you can choose between bars and coins. Mostly in Europe governments charge a value added tax (VAT) on coins and bars. There has been an ongoing discussion between silver dealers in Ireland and the Irish Revenue. The question was: Are silver coins with a face value officially legal tender subject to VAT? Irish Revenue stated: Legal tender coins in use are not subject to VAT. Legal tender coins in use means the Euro coins that we use in daily life. All traded pure silver coins are therefore not legal tender. This includes all of the most popular silver coins sold in Europe, such as the Vienna Philharmoniker, the Canadian Maple Leaf, the American Eagle and the Australian Kookaburra. (See table to the right) We have thoroughly researched the VAT situation in Ireland when customers started to buy silver coins. On March 29 th 2011 the Irish Revenue clarified the vat on silver coins. For more information click on link below: Source: jsp VAT rates on silver coins and bars in Europe: Austria 20% Belgium 21% Denmark 25% France 19.6% Germany 7% Italy 20% Ireland 21% Luxembourg 15% Netherlands 19% Spain 18% United Kingdom 20% 1oz Maple Leaf silver coin traded at EUR incl. 7% VAT.

4 What can you do if you would like to buy silver coins but your country has a high VAT rate? 1. You buy through a country that does not charge VAT on coins such as United States of America, Canada and Switzerland If you buy in one of the above countries and keep it stored there, you will not be charged VAT on coins. However if you ship your coins out of one of these countries you ll need to pay a VAT to the country you ship to. Another option is to fly into one of these countries, buy the coins below 10,000 EUR (or US$, or CHF) and bring them back personally without declaring. Please check the Carry-on allowances with your airline when carrying silver for 10K. 2. You buy through a European country that has the lowest VAT rate on silver coins in this case Germany. For everyone who would like to own silver coins, Celticgold partners with pro/cent Inc. a German company. pro/cent is also run and owned by myself. There are two ways that we help you to own silver at the lowest VAT rate in Europe: EUR Silver coin Horse The price of this Centralbank coin costs 36 EUR and weighs gram with a purity of 925/1,000 Current silver The 1oz (31.1 gram) Vienna Philharmoniker - We process your order through pro/cent and your coins are stored in a fully insured high security vault in Germany. - pro/cent processes your order and you either take delivery in Germany and personally transport the coins to your home country or you hire a reputable curier service which we can help you identify who then transports the coins directly to you. You ll find current silver prices on our celticgold website including 7% VAT. However prices do not include shipping fees. Please call us for more details. What subject or theme are you interested? Please let us know and we are happy to answer in one of the next newsletters.

5 Why is the EURO silver coin sold without VAT and is it a good value? As investors we re interested in buying coins that are very close to the current silver price. Historically coins issued from central banks are over priced for the amount of pure silver you re receiving per coin. Although these coins are classified as collectors coins and are therefore not legal tender, central banks do not charge a VAT on these coins. The market price for these coins are traded at a 30% premium over the spot price of silver. In comparison, the 1oz Philharmoniker silver coin (see in box right) will typically trade for only 8 to 10% over spot. If you include VAT you re still receiving a much better value on your investment. On the funny side of things: How to pay with precious metals today! Many clients that invest in precious metals ask: How can I use my silveror gold as money? Here are two fun stories: I have been travelling in and out of Ireland for over two years and have fell in love with Kinsale. While in Kinsale I needed to get a haircut. Usually I avoid going to the hairdresser for weeks and weeks and then I look a bit unkempt and hairs growing everywhere. One night at the Spaniard, I met Fintan the local maitre de hair and booked an appointment. A bit short in cash I asked him if it would be possible to pay in silver and he was very interested. So I showed up with an 1oz Vienna Philharmoniker silver coin that was trading at that time for 28 EUR and we shook hands - two haircuts for one ounce of silver. Always worth a visit: Fintan Lynch in Kinsale +353 (0) Write us your quirky story about money to: info@celticgold.eu If we publish your story you receive one of our cute and cuddly celticgold keyring teddys Well, that was in December last year and I still have one free haircut Kinsale I m coming. A female friend of mine also needed a haircut and we all know girls are a bit more expensive than us boys, so she rocked up with 1 gram of pure 24K gold.

6 Now that sounds really precious and it is, but one gram of gold is tiny, about the size of a 1 cent Euro coin. At the time of the appointment she easily could pay with the 1 gram gold bar and our friend Fintan was happy with his new assets. Since December prices have gone up about 20+%, so that gives him a lovely tip. If you would like to have a bit of fun and try this out for yourself, we have 1 gram gold bars available for sale. * We strongly advise you hold your core gold and silver positions for the long term. Celticgold: Our take on the financial markets We at celticgold believe that a stratospheric rise of gold and silver happens in the next few years. Government bailouts, billions and trillions of dollars and euros of budget deficits at the expense of the taxpayer and massive money printing by central banks will result in a collapse of the major currencies. We at celticgold believe that one of the few ways to protect your wealth from the coming economic chaos is through physical ownership of the precious metals. Preview for next week: Knowledge: Storage Options Pros and Cons of the different options Story/Tale: Euros4Gold What s behind it?