American Investment Services, Inc.

Disciplined, Diversified, & Cost Effective

Apr. 2013 – Reassessing Gold Mining Stocks

We have completed an extensive review of data pertaining to gold and our recommended gold mining stocks. In light of alternative investment vehicles that are available we have concluded that these shares no longer provide the optimal means of ensuring exposure to the gold price. Investors should sell their gold mining shares and reinvest the proceeds in either of our recommended gold bullion ETFs.

Over the past several months, AIS and AIER have written extensively regarding the wisdom of holding gold in a well-diversified portfolio. Although gold does not generate earnings and does not have a positive expected return, it has proved to be extremely effective as a form of portfolio insurance. The gold price is extremely volatile, but it has demonstrated very low or even negative correlation with the returns of our other recommended asset classes, and while gold does not serve well as an inflation hedge during periods of moderate price inflation, it has proven to hold up very well during periods of extreme financial duress and has held up well during periods of deflation.

In short we are as confident as we ever have been, especially following gold’s performance during the recent financial crisis, that most investors stand to benefit by ensuring that their portfolio includes a five to ten percent allocation to the gold price.

Also In This Issue

Quarterly Review Of Capital Markets
The High-Yield Dow Investment Strategy
Recent Market Statistics
The Dow Jones Industrials Ranked By Yield
Recommended Investment Vehicles