Don Coxe 12/28/11 Conference Call

· Greece has replaced democracy with the technocrats whose lenders no longer trust democracy

· Then you look at the religions and Christianity is becoming weaker, declining as the glue of society but the exact opposite is happening in Islam where it is growing significantly in power.

· Demographics in the western world is problematic and by not growing is impacting demand whereas in the Islamic world it is the opposite with the demographics favoring the young

· Global economy is not generating a lot of free cash to bail out the Eurozone so instead they are just coming up with one temporary fix after another

· Iran has now a large navy which can cause a lot of problem. This plus the fact that our reserves of oil is low.

· Politicians are not helping us at all. What is clear is that politicians are not wanting to level with the taxpayers or voters as to the real problem. But taxpayers don’t seem to be that dumb as over 60% say government is the problem.

· Dollar strength is because of what’s happening overseas. This will be a constraint on commodity prices.

· However none of this will reflect the price of oil. People’s perception is that we do not have large overhang of oil. All of this means that you have to be in oil stocks with long reserves.

· Also looks like we will have higher grain prices than expected because of bad news out of Argentina which if they don’t get rain within the next two weeks will have higher food prices. Foods and fuels is where there will be real demand from those who absolutely have to have the product..

· All of this will ultimately be good for gold. Pullback in gold because of strength in US dollar. Rising food and fuel means that gold will outperform them all.

· Thinks 2012 should be a happier year for commodity investors.