20th May 2016, RVTV Presentation Charts

Quantity of Liquidity
(YOY%)

USA
Total System Liquidity
(Quantity + Velocity, %YOY)

Velocity of Liquidity

(YOY%)

US 10yr
Bond Yield

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Copyright 2016 Prerequisite Capital Management Pty Ltd, Australia. All rights reserved. Past performance is not indicative of future results. The views expressed are the views of Prerequisite Capital Management Pty Ltd through the period ending at the date of
publication and are subject to change at any time based on market and other conditions. References to specific securities and issuers are for illustrative purposes only and are not intended to be, and should not be interpreted as, recommendations to purchase or sell such securities.

20th May 2016, RVTV Presentation Charts

Total System Liquidity

(Quantity + Velocity, %YOY)

CNY/USD

China

Quantity of Liquidity
(YOY%)

Velocity of Liquidity

(YOY%)

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Copyright 2016 Prerequisite Capital Management Pty Ltd, Australia. All rights reserved. Past performance is not indicative of future results. The views expressed are the views of Prerequisite Capital Management Pty Ltd through the period ending at the date of
publication and are subject to change at any time based on market and other conditions. References to specific securities and issuers are for illustrative purposes only and are not intended to be, and should not be interpreted as, recommendations to purchase or sell such securities.

20th May 2016, RVTV Presentation Charts

Quantity of Liquidity
(YOY%)

Total System Liquidity

(Quantity + Velocity, %YOY)

Global system proved resilient due to

China & USA combined liquidity support

China + USA
(combined liquidity)

Velocity of Liquidity

(YOY%)

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Copyright 2016 Prerequisite Capital Management Pty Ltd, Australia. All rights reserved. Past performance is not indicative of future results. The views expressed are the views of Prerequisite Capital Management Pty Ltd through the period ending at the date of
publication and are subject to change at any time based on market and other conditions. References to specific securities and issuers are for illustrative purposes only and are not intended to be, and should not be interpreted as, recommendations to purchase or sell such securities.

20th May 2016, RVTV Presentation Charts

US 10yr Inflation Indexed Yield

(Real Yield)

Step up in Real Yields

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Copyright 2016 Prerequisite Capital Management Pty Ltd, Australia. All rights reserved. Past performance is not indicative of future results. The views expressed are the views of Prerequisite Capital Management Pty Ltd through the period ending at the date of
publication and are subject to change at any time based on market and other conditions. References to specific securities and issuers are for illustrative purposes only and are not intended to be, and should not be interpreted as, recommendations to purchase or sell such securities.

20th May 2016, RVTV Presentation Charts

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Copyright 2016 Prerequisite Capital Management Pty Ltd, Australia. All rights reserved. Past performance is not indicative of future results. The views expressed are the views of Prerequisite Capital Management Pty Ltd through the period ending at the date of
publication and are subject to change at any time based on market and other conditions. References to specific securities and issuers are for illustrative purposes only and are not intended to be, and should not be interpreted as, recommendations to purchase or sell such securities.

20th May 2016, RVTV Presentation Charts

US Dollar Index
(DXY)

9-year low range bound

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Copyright 2016 Prerequisite Capital Management Pty Ltd, Australia. All rights reserved. Past performance is not indicative of future results. The views expressed are the views of Prerequisite Capital Management Pty Ltd through the period ending at the date of
publication and are subject to change at any time based on market and other conditions. References to specific securities and issuers are for illustrative purposes only and are not intended to be, and should not be interpreted as, recommendations to purchase or sell such securities.

20th May 2016, RVTV Presentation Charts

US Dollar Index

10yr inflation indexed

Bond yield

10yr yield less annual 1yr yield less annual

CPI rate of change
CPI rate of change

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Copyright 2016 Prerequisite Capital Management Pty Ltd, Australia. All rights reserved. Past performance is not indicative of future results. The views expressed are the views of Prerequisite Capital Management Pty Ltd through the period ending at the date of
publication and are subject to change at any time based on market and other conditions. References to specific securities and issuers are for illustrative purposes only and are not intended to be, and should not be interpreted as, recommendations to purchase or sell such securities.

20th May 2016, RVTV Presentation Charts

Simplistically:
USD = +Real Rates - US Liquidity (Qty + Velocity)
Gold = -Real Rates + US Liquidity (Qty + Velocity)
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Copyright 2016 Prerequisite Capital Management Pty Ltd, Australia. All rights reserved. Past performance is not indicative of future results. The views expressed are the views of Prerequisite Capital Management Pty Ltd through the period ending at the date of
publication and are subject to change at any time based on market and other conditions. References to specific securities and issuers are for illustrative purposes only and are not intended to be, and should not be interpreted as, recommendations to purchase or sell such securities.

20th May 2016, RVTV Presentation Charts

US Dollar Index

Gold (USD)
10yr inflation indexed
Bond yield

10yr yield less annual 1yr yield less annual

CPI rate of change
CPI rate of change

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Copyright 2016 Prerequisite Capital Management Pty Ltd, Australia. All rights reserved. Past performance is not indicative of future results. The views expressed are the views of Prerequisite Capital Management Pty Ltd through the period ending at the date of
publication and are subject to change at any time based on market and other conditions. References to specific securities and issuers are for illustrative purposes only and are not intended to be, and should not be interpreted as, recommendations to purchase or sell such securities.

20th May 2016, RVTV Presentation Charts

Understanding the regime progression in Gold...

-Real Yields
Liquidity

Stable to falling

Real yield spike

Growing (with velocity wobble)

Velocity offset by Qty

Rising

Effect on Gold

= resilient liquidity growth

Resilient Gold
Price

Falling
Growing (with velocity wobble)

Rising

Falling
Velocity > Qty

Real yield increase

= Liquidity collapse

Transition to growth
(but problematic velocity)

Stalled

Falling

Stable/sideways
Slowing growth into negative
(due to persistently falling velocity)

Weakening bias

Gold (USD), rhs

US 10yr Bond
Real Yield, lhs

USA

Quantity of Liquidity
(YOY%)

Total System Liquidity

(Quantity + Velocity, YOY%)

Velocity of Liquidity
(YOY%)

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.com.au/research
www.prerequisite
.com.au/research
Copyright
2016 Prerequisite
Management
Ltd,
Australia.
All rights reserved.
Past performance
not indicative
of future
results.
are the
views
of Prerequisite
Management
Pty
Ltd through
the period
ending at the date of
Copyright 2016 Prerequisite
Capital
ManagementCapital
Pty Ltd,
Australia. AllPty
rights
reserved.
Past performance
is not indicative
of future is
results.
The views
expressed
areThe
the views expressed
of Prerequisite
Capital
Management
Pty Capital
Ltd through
the period
ending
at the date
of

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publication and are subject

publication
to changeand
at any
are time
subject
based
to change
on market
at any
andtime
other
based
conditions.
on market
References
and othertoconditions.
specific securities
References
and to
issuers
specific
aresecurities
for illustrative
and issuers
purposes
areonly
for illustrative
and are notpurposes
intendedonly
to be,
and
and
areshould
not intended
not be interpreted
to be, and should
as, recommendations
not be interpreted
to purchase
as, recommendations
or sell such securities.
to purchase or sell such securities.

20th May 2016, RVTV Presentation Charts

GDP / M2
(Conventional velocity measure)

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Copyright 2016 Prerequisite Capital Management Pty Ltd, Australia. All rights reserved. Past performance is not indicative of future results. The views expressed are the views of Prerequisite Capital Management Pty Ltd through the period ending at the date of
publication and are subject to change at any time based on market and other conditions. References to specific securities and issuers are for illustrative purposes only and are not intended to be, and should not be interpreted as, recommendations to purchase or sell such securities.

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20th May 2016, RVTV Presentation Charts

Total System Liquidity

(Quantity + Velocity, %YOY)

Euro Area Liquidity

Euro Area 10yr
Sovereign Bond Yield

Velocity of Liquidity

(YOY%)

Quantity of Liquidity
(YOY%)

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Copyright 2016 Prerequisite Capital Management Pty Ltd, Australia. All rights reserved. Past performance is not indicative of future results. The views expressed are the views of Prerequisite Capital Management Pty Ltd through the period ending at the date of
publication and are subject to change at any time based on market and other conditions. References to specific securities and issuers are for illustrative purposes only and are not intended to be, and should not be interpreted as, recommendations to purchase or sell such securities.

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20th May 2016, RVTV Presentation Charts

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Copyright 2016 Prerequisite Capital Management Pty Ltd, Australia. All rights reserved. Past performance is not indicative of future results. The views expressed are the views of Prerequisite Capital Management Pty Ltd through the period ending at the date of
publication and are subject to change at any time based on market and other conditions. References to specific securities and issuers are for illustrative purposes only and are not intended to be, and should not be interpreted as, recommendations to purchase or sell such securities.

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20th May 2016, RVTV Presentation Charts

Contact: Darren Brind (CEO)

darren@prerequisite.com.au
+614 98 671 505
Copyright 2016 Prerequisite Capital Management Pty Ltd, Australia. All rights reserved.
Past performance is not indicative of future results. Neither Prerequisite Capital Management Pty
Ltd nor any of its employees, or any person(s) or firm who is represented within this publication shall
have any liability for any direct or consequential loss sustained by anyone who has relied on the
information contained in this publication. At no time does Prerequisite Capital Management Pty Ltd
make specific recommendations for any specific person, and at no time may a reader, caller or
viewer be justified in inferring that any such advice is intended. This publication has been prepared
by Prerequisite Capital Management Pty Ltd on behalf of itself and its affiliated companies solely for
the general information of clients or potential clients of Prerequisite Capital Management Pty Ltd.
It is not intended as an offer or solicitation for the purchase or sale of any financial instrument. The
views expressed are the views of Prerequisite Capital Management Pty Ltd through the period
ending at the date of publication and are subject to change at any time based on market and other
conditions. References to specific securities and issuers are for illustrative purposes only and are
not intended to be, and should not be interpreted as, recommendations to purchase or sell such
securities. Prerequisite Capital Management Pty Ltd (ABN 27 141 060 933) is a Corporate
Authorised Representative of AIW Dealer Services Pty Ltd (ABN 59 153 322 420) AFSL 414256.

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Copyright 2016 Prerequisite Capital Management Pty Ltd, Australia. All rights reserved. Past performance is not indicative of future results. The views expressed are the views of Prerequisite Capital Management Pty Ltd through the period ending at the date of
publication and are subject to change at any time based on market and other conditions. References to specific securities and issuers are for illustrative purposes only and are not intended to be, and should not be interpreted as, recommendations to purchase or sell such securities.

14