In its Annual Information Form dated March 31, 2011, New Gold stated with regard to Risk Factors, “The operations of the Company are speculative due to the high-risk nature of its business, which is the acquisition, financing, exploration, development and operation of mining properties. These risk factors could materially affect the Company’s future operating results….The Company’s earnings and cash flows are subject to price risk due to fluctuations in the market price of gold, silver and copper. World gold prices have historically fluctuated widely. World gold prices are affected by numerous factors beyond the Company’s control….” Investors, certified public accountants and estate planning attorneys should be especially concerned when seeing this stock in an investment portfolio managed by Raymond James or UBS Financial Services if the portfolio was not supposed to be invested in high risk securities. Not only should your clients consider having a Certified Financial Planner review the portfolio, they should also consider having an experienced securities arbitration attorney review the portfolio. David A. Weintraub, P.A. is interested in speaking with New Gold investors who believe that their investments were supposed to be conservatively managed.
