Market Summary —
May 2006

Platinum recorded the only net gain of the four major precious metals (gold, silver, platinum and palladium) in May, reaching a high of $1,338 on May 12 (up from $1,160 at the New York close on May 1) and holding close to the $1,300 level for the remainder of the month. After starting strong, gold rose to a new 25-year high mid-month, soaring well above $700. The yellow metal dropped to a four-week low to close just above $648 on May 25 before stabilizing. Starting the month a touch below $14, silver broke the $15 barrier on May 11. Strong demand kept the white metal in the $13 range for most of the final week of May. Finally, despite trading temporarily above the $400 mark in mid-May (the first time since 2002), palladium sagged to a per-ounce price of just above $350 by month’s end.

May Spot Price Summary (U.S. Dollars)
	Silver	Gold	Palladium	Platinum
High	15.20	725.75	402.00	1338.00
Low	12.18	650.50	338.00	1167.00
Open	13.95	659.50	376.00	1167.00
Close	12.55	643.50	345.00	1246.00

CONTENTS

	Market Summary - May 2006
	May Tells Much About Resilience of Gold and Silver
	How to Add Precious Metals to Your IRA
	Precious Metals Worldwide News

ABOUT NORTHWEST TERRITORIAL MINT PRECIOUS METALS MONTHLY

Combining market summary information and insightful analysis, this publication offers an insider’s perspective on the numbers, trends, and moves that drive the precious metals market, allowing you to stay on top of the most important investment news each month without investing hours of your precious time.

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CHARTS

The following charts display the low, high and closing spot price of each metal for the month of May, 2006. Source: Northwest Territorial Mint spot prices as posted at nwtmintbullion.com.

May Silver

May Gold

May Palladium

May Platinum

The following charts display the closing spot price of each metal for the five months ending May 31, 2006.

Silver

Gold

Palladium

Platinum

May Tells Much About Resilience of Gold and Silver
by Ross Hansen

After witnessing historic price gains in precious metals in April, investors were left scratching their heads this past month, wondering what to make of sharp declines in gold and silver.

Though they surged early on, both gold and silver stumbled in subsequent weeks, displaying signs of vulnerability not seen in recent months.

Not surprisingly, those bearish on precious metals were out in full force as a result of the mid-month pullback, forecasting continued declines fueled by a strengthening dollar and falling oil prices.

Far from foreshadowing the end of the bull market for gold and the other precious metals, May’s market activity demonstrated their resilience and revealed their fundamental strength.

After peaking at $725.75, gold tumbled more than $80 on news that oil had fallen below $70 a barrel, causing some analysts to hint of a speculative bubble on the verge of bursting.

Despite this downward trend, gold closed the month at $643.50, less than $15 off its New York close from the first day of the month. In addition, gold futures remained relatively strong throughout May, even in the face of sector-wide volatility. Most important, gold rallied late in the month on renewed buying. Overall, investor confidence in the metal hardly seemed shaken at all by month’s end, as bargain hunters returned and physical demand edged slightly higher.

Silver followed a similar trajectory this past month. But rather than signaling an imminent collapse, its performance left many expecting another rise in the near future. After touching $15, the white metal slid into the $12 range for the first time in weeks.

However, silver regained momentum heading into the U.S. Memorial Day weekend. In addition, physical demand for silver continues to remain strong. Industrial demand has not slowed and the jewelry sector has remained stable. Finally, since Barclay’s Global Investors debuted its new silver ETF (known as iShares^®), more than 70 million ounces have been placed under management.

To summarize, while some analysts have pointed to the performance of precious metals in May as evidence of an impending sector-wide collapse, trading in these metals has not slowed down and investor confidence still appears robust.

May’s market turbulence signaled a few bumps in the road but apparently not an end to the precious metals boom.

How to Add Precious Metals to Your IRA
by Northwest Territorial Mint Staff

If you haven’t considered rounding out your investment portfolio with precious metals, you may want to think again. Precious metals such as gold and silver are not only thought to be a solid hedge against inflation, but tend to perform well in volatile markets caused by global crises. Given the highly unpredictable situation in Iran, the protracted war in Iraq, and the constant threat of terrorism, these tangible assets are looking more and more attractive to investors.

As a result of the Taxpayer Relief Act of 1997, investors can now add a wider variety of precious metal bullion products to their IRAs, including gold and platinum coins, silver coins and bars, and palladium bars. Prior to the regulation change, Gold American Eagle coins, Canadian Maple Leaf coins, and platinum and palladium bullion products, for example, were excluded. Here are some of the specifics:

Gold
Gold coins must meet a minimum purity standard of 99.5% and must be considered legal tender. American Eagles and the Canadian Maple Leaf are two of the more popular gold coins chosen for inclusion in IRAs. Other coins that meet the eligibility requirements include the Vienna Philharmonic and the Perth Mint’s Lunar Series.

Silver
Those interested in adding silver to their portfolio can choose from a wider variety of silver coins and bars. In addition to the heavily traded American Eagle and Maple Leaf coins, investors can choose from private label rounds and bars produced by private mints worldwide.

Platinum
The platinum American Eagle, which has been minted since 1997, is the only platinum coin specifically approved for inclusion in an IRA.

How to Get Started
If you don’t already have an IRA account established with a custodian who will accept precious metals, you will need to set one up. The custodian will hold your precious metal purchases and help you manage and track your contributions to your IRA. Once you have your account established, you can regularly fund your IRA with contributions, transfers, and rollovers. When making bullion purchases from Northwest Territorial Mint, you need to inform us that your purchase is for distribution to your IRA. This will prompt us to ship your order directly to the approved depository used by your custodian.

Disbursements
When you decide to take disbursements from your IRA, you may choose to convert your precious metals to cash or take distribution in the form of the physical metals. This flexibility allows you to take advantage of market conditions before you sell. Remember that IRS penalties are imposed on withdrawal before age 59 ½ .

Precious Metals Worldwide
News & Trends from Around the Globe

China Raises Taxes on Gold Mines

The Chinese government recently announced plans to raise taxes on gold mines. In response to higher gold prices in early May and in a move to capitalize on future price gains, the State Administration of Taxation has raised the resource tax by an average of 114% on cliff gold mine operations throughout the country.

Impala Platinum Releases 51M oz. of Platinum to Zimbabwe

Impala Platinum (Implats), the world’s second largest platinum producer, plans to release 51 million ounces, or 36% of its platinum resource base, per an agreement reached in late May with the Zimbabwean government. Implats will receive a combination of empowerment credits and cash in exchange for the release. According to official reports, the market value of the claim is $153 million.

Miners in Peru, Bolivia Forced to Play Politics

Major players in the mining industry in Peru and Bolivia continue to face the threat of nationalization. In Bolivia, recently elected President Evo Morales declared on May 1 that his administration would take over operation of Bolivia’s oil and gas industries. Mining companies fear they are next. Meanwhile, in Peru – South America’s largest gold producer – mining interests await the results of the country’s presidential election. Alan Garcia, who has talked of nationalizing hard metal mines, is currently leading in the polls there.

Warren Buffett Gets Out of Silver

Berkshire Hathaway’s legendary Chairman, Warren Buffett, sold his holdings of more than 129 million ounces of silver on May 5. Buffett initially took a massive position in the white metal back in 1998, purchasing the same amount (129.5 million ounces) at $6 an ounce.