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In The Two Best Gold Investments In The World Right Now, Steve explains why gold is one investment that investors may soon be willing to pay almost any price to get… and how two gold investments in particular could easily double or triple in price over the next few years.

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This week’s economic reports:

Next week’s economic highlights include Construction Spending and the ISM Index on Monday, ISM Services on Wednesday, and jobs data, Wholesale Inventories, and Consumer Credit on Friday.

Cot Reports: Gold | Silver 

Gold traded a couple dollars higher in yesterday’s after hours Access trade and remained mostly higher in Asia, but it then steadily fell off in London and New York and ended 0.73% lower to fall from 25 year highs.  Silver traded about 10 to 15 cents higher in yesterday’s after hours Access trade and climbed up over $11.90 in Asia, but it then also steadily fell off in London and New York and ended 0.43% lower to fall from 22 year highs.

Gold and silver equities dropped about 1% in the first hour of trade before rebounding a bit, but they then fell back off to find about 2% losses before they again rebounded a bit into the close.

Euro gold fell but held near €480, platinum fell from 26 year highs and lost $21 to $1,061, palladium fell from 3 and ½ year highs and lost $11 to $331, and copper fell slightly from all-time highs but held near $2.45.

Some important gold/silver stories recently crossing the wire:

ECB says has sold 57 tons of gold, does not plan further sales in next 6 mths

World Gold Trust Eyes Asia For Gold ETF Launch

More Precious Metals Analysis:

“As many expected the gold market seemed to run out of fund and spec buying fuel even before the 1st quarter ended. With the Dollar higher, oil prices soft and the US equity market soft it is not surprising that gold decided to bank some profits. On the other hand, the market continues to see a significant amount of potentially supportive geopolitical anxiety but the market also saw some of the inflation threat downplayed as a result of the statements from the US Fed on Friday morning that inflation remained contained. Some other inflation measures released on Friday morning also downplayed the inflation track and that added to the profit taking tilt.

The silver market was no stranger to profit taking on Friday and with the equity market down and gold under some pressure. With Apex mining showing a widening of losses in their most recent quarterly earnings report it would not appear that the miners are flush with cash and prepared to ramp up silver production in the wake of the price gains. Some longs were reportedly dumping out of long positions ahead of the positioning reports, which were expected to show a new record long spec and fund positioning.” - The Hightower Report, Futures Analysis and Forecasting

Julian D.W. Phillips on the past week: “Gold led the way, after being triggered by oil's climb towards $70, Silver leapt up nearly 15%, against almost 5%.   Now it seems to be bracing itself to attack $600 and Silver $12?  

Just how much Silver will be bought immediately after the listing of the Silver Exchange Traded Fund [keenly awaited soon] is not as clear as we would like.    Like confirming an oil strike, will Silver be sold off then by the funds, possibly?   But for sure such a fund brings long term Investors to Silver.  Is the market deep enough to cope?   We suggest all think these issues through carefully and soberly!” - Julian D.W. Phillips of www.goldforecaster.com

Charleston Voice emailed in late in the day with some more comments relating to his Give Me the Real Thing article posted this morning:

“What I don't think came thru clear enough in my recent posting on your site is the now possibility, or even likelihood, that miners can simply buy the ETFs rather than bring their product to market. In short, they can hang onto their reserves w/o depleting them either by forward hedging or outright sales! No complicated delivery contracts. Just sell enough physical into the market to maintain administrative chores, and buy ETFs. I can't envision them ever going short except to sell physical for cash. This is made possible because the ETFs are paper-driven. Can you imagine just for an instant the shortage in critical metals that could result should they undertake this en masse! Can you say NATIONALIZATION? Far out, man.

Isn't this the strategy that SSRI's Quartermain and Goldcorp to a lesser extent have been employing right along? What a way to defend against rising mining costs like energy. The oil companies are not expanding new refineries because they know with peak oil there will be no oil to refine!

If enough producers decide to leverage themselves with paper, eliminating the necessity of delivery contracts and agreements, they begin to evolve with a corporate mission of expanding reserves through exploration or acquisition w/o resource depletion. Furthermore, it'd be a vicious loop for the users like the silver bunch. The less product to market, the higher the price goes and the more their ETF shares are worth. Perpetual call options that don't expire.

Break it down to the lowest common denominator - yourself. Silver and gold bulls have no intention at this level to haul their 90% silver bags down to the coin shop. Aside from believing the prices will go much higher over several years, there will be growing, if not evident already, that they risk not being able to buy them back! Sure, buy and sell the stocks themselves, but touch my physicals - NO WAY!

Never mind the forecasts for falling mine production, presumably we're told due to rising expenses. Well, reduce expenses by mining less! And what they do mine, use for paper ETFs and exploration to build reserves.” - Charleston Voice

The U.S. dollar index rebounded from yesterday’s sharp losses as the morning’s economic data was mostly strong and supported the fed’s recent view of further interest rate increases.

Oil fell from near 2 month highs on profit taking and easing geopolitical concerns in Nigeria and Iran.

Treasuries started off higher on February’s Core PCE data that was considered tame inflation-wise, but they ultimately continued to find selling pressure from yesterday’s reported Q4 Core PCE data that was seen as hawkish.  The yield on the 10-year fell slightly from 21 month highs despite the bond market losses.

The Dow, Nasdaq, and S&P started off decently higher on tame inflation data, but all three indices fell off throughout trade and ended near their lows as traders adjusted positions heading into the close of the quarter.  The Nasdaq fell slightly from 5 year highs.

Among the big names making news in the market Friday were Colgate and Pfizer, Sanyo, GM and GMAC, Delphi, and Freddie Mac.

GATA Posts:

No more European Central Bank gold sales for six months

Ted Butler: Signed, sealed, delivered?

Gold ETF sponsor sets sights on Asia for round-the-clock trading

Gold & Silver Stock News Update from GoldReview.com:

Yamana’s supported purchase of Desert Sun, earnings from Crystallex, Cumberland, Apex Silver, and Ivanhoe, and Fortuna Silver’s plans for production in the 3^rd quarter 2006 were among the big stories in the gold and silver mining industry making headlines Friday.

WINNERS

LOSERS

All of Friday's gold and silver stock news:

Crystallex Reports 2005 Year End Results - "The Company recorded a net loss of $45.2 million, or $0.23 per share in 2005, compared with a net loss of $60.7 million or $0.35 per share in 2004. The decline in the net loss in 2005 reflects a write-down of investments in subsidiaries of $6.6 million in 2005, as compared with mineral property write-downs in the prior year of $32.0 million." More
- March 31, 2006 | Item | E-mail

BrazMin reports 2005 year end results - More
- March 31, 2006 | Item | E-mail

Caledonia Mining Fourth Quarter and 2005 Annual Results and Appoints Chief Financial Officer - More
- March 31, 2006 | Item | E-mail

Shareholders of Desert Sun Mining Corp. Support Merger with Yamana Gold Inc. - "Yamana Gold Inc. and Desert Sun Mining Corp. today announced that the shareholders of Desert Sun have overwhelmingly voted in favour of the proposed arrangement between Yamana and Desert Sun relating to the purchase by Yamana of Desert Sun. The arrangement will be effective on April 5, 2006, subject to the receipt of final court approval expected on April 4, 2006." More
- March 31, 2006 | Item | E-mail

Thistle announces Credit Arrangement with major shareholders - More
- March 31, 2006 | Item | E-mail

Thistle Mining Inc - Annual Results for the year ended December 31, 2005 - More
- March 31, 2006 | Item | E-mail

Fujian Tiancheng Refutes Sparta Holding's Unfounded Claims of Ownership Interest or Contractual Rights in Da-An Silver Mine Property - More
- March 31, 2006 | Item | E-mail

PCFG Updates Mill Testing and Modifications - More
- March 31, 2006 | Item | E-mail

Fortuna on Track for Silver Production in Third Quarter 2006 - "The Company continues to make steady progress with mine commissioning and commercial silver production is expected to begin during the third quarter of this year. Mechanical crews initiated work on upgrading the 700 tonne per day processing plant in the first week of March, and the new primary jaw crusher has arrived on site. Also during March, the Company received its Certificate for Mining Operations from the Peruvian government, and awarded the mine production and development contract to Canchanya Ingenieros S.R.L., a Peruvian mine contracting firm. Canchanya are currently operating in several underground mines, and are the sole contractor for the Ares mine, one of the largest underground gold-silver operations in the country." More
- March 31, 2006 | Item | E-mail

Seafield Plans Private Placement - More
- March 31, 2006 | Item | E-mail

Sulliden Exploration Inc.: Update on Arbitration and Litigation on Shahuindo Property Constitutional Tribunal Reaffirms Autonomy of Arbitration Process - More
- March 31, 2006 | Item | E-mail

Yankee Hat Announces $1M Private Placement - More
- March 31, 2006 | Item | E-mail

Verena Warrants Exercised - More
- March 31, 2006 | Item | E-mail

Dundee Precious Acquires Shares of Cassidy Gold Corp. - More
- March 31, 2006 | Item | E-mail

Little Squaw Provides Update on Chandalar Road Access - More
- March 31, 2006 | Item | E-mail

Cumberland Reports 2005 Financial Results and Summary of Activities - "The Company incurred a net loss of $9.7 million for the year-ended December 31, 2005, compared to a net loss of $10.5 million for the year-ended December 31, 2004. The reduction in net loss during 2005 is primarily attributable to a $1.4 million reduction in exploration and development costs and a $0.8 million reduction in stock-based compensation expense, which were partially offset by increased project financing costs and lower gains on investments in public companies." More
- March 31, 2006 | Item | E-mail

Unico Announces Further Progress on Construction at the Deer Trail Mill and Processing Facility - More
- March 31, 2006 | Item | E-mail

Greencastle Acquires Fourth Property on Battle Mountain Trend, Nevada - More
- March 31, 2006 | Item | E-mail

Alpha Gold engages CHF Investor Relations - More
- March 31, 2006 | Item | E-mail

Moto Goldmines Limited: Resignation of a Director - More
- March 31, 2006 | Item | E-mail

Cypress Development Corp. -- Phase 1 Drill Program Completed on Broulan Reef Project, More Drilling Planned, Red Lake, Northwestern Ontario - More
- March 31, 2006 | Item | E-mail

Michelago/Golden China Business Combination Moving Toward Completion - More
- March 31, 2006 | Item | E-mail

Jaguar Mining reports 2005 results, maintains development pace - More
- March 31, 2006 | Item | E-mail

East Delta Reports Additional Positive Results at its Anchor Property - More
- March 31, 2006 | Item | E-mail

Red Lake options Zacatecas Mexico silver property - More
- March 31, 2006 | Item | E-mail

Galantas Gold Corporation: Commencement Of Trading On AIM - More
- March 31, 2006 | Item | E-mail

Apex Silver Reports on 2005 Year-End Results - "Apex Silver Mines Limited today reported a net loss of $47.3 million or $0.94 per share for the fourth quarter 2005 compared to a net loss of $4.4 million or $0.09 per share for the same 2004 period. The loss in the fourth quarter is mainly due to a $48.8-million non-cash mark-to-market charge related to the previously-announced hedge position put in place by the company in connection with $225-million in project financing for its 100%-owned San Cristobal open-pit silver-zinc-lead project located in southwestern Bolivia." More
- March 31, 2006 | Item | E-mail

Ivanhoe Mines Announces 2005 Year-End Financial Results - "Ivanhoe Mines Ltd. today reported its financial results for the year ended December 31, 2005. In 2005, the Company recorded a net loss of $89.8 million (or $0.29 per share), compared to a net loss of $94.5 million (or $0.34 per share) in 2004. The $4.7 million decrease in net loss between the years is mainly due to a $35.9 million increase in income and a gain on sale from discontinued operations, less an increase of approximately $29.0 million in exploration expense." More
- March 31, 2006 | Item | E-mail

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- Written by Chris Mullen

Winners & Losers tracks NYSE and AMEX listed stocks that trade over $1.

The Gold Seeker Closing Report is a free edition providing a daily wrap-up of gold & gold-related news.  For more in-depth analysis of the gold markets, subscribe to The Gold Forecaster.

All sources are given within the report and most articles can be found as they are released at http://www.capitalupdates.com/, http://www.goldseek.com/, http://www.silverseek.com/, and http://www.goldreview.com/.

© Gold Seeker 2006

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