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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 Wholesale Inventories on Tuesday, the Treasury Budget and FOMC policy statement on Wednesday, Business Inventories and Retail Sales on Thursday, and Import/Export Prices, the Trade Balance, and Michigan Sentiment on Friday.

Gold rose near $680 in after hours trade late yesterday, fell back near $675 in Asia, and rose up near $685 in early London trade before it fell back near $675 at the New York open.  Gold then quickly shot back above $680 before it again fell back near $675, but it then rallied into the close and ended near its highs of the day with a 1.16% gain at a new 25 year high.  Silver rose above $14 in late Asian/early London trade before it fell near $13.70 in midmorning New York trade, but it also rallied into the close and ended with a 0.58% gain to end just 64 cents from new 25 year closing highs.

Gold and silver equities found slight gains in the first half hour of trade, but they then dropped off sharply to find nearly 2% losses before they rebounded a bit, but they still ended about 0.5% lower on the day.

Euro gold made new all-time highs above €535, platinum gained $11 to $1,174 to new 26 year highs, palladium lost $4 to $371, and copper found slight gains to make new all-time highs near $3.50.

From yesterday’s Midas report by Bill Murphy of LemetropoleCafe.com:

“A highly regarded gold analyst/fund manager in Canada told a colleague there is almost ZERO Canadian institutional interest in the gold share market. Figures ... one of the grandest market moves in history is upon us and very few are onboard ... which is why the shares can’t get out of their own way YET!

The thinking of many of the share buyers is they can't see why gold is where it is in the first place. Since it MUST correct, why buy the shares now ... wait for the inevitable correction, one almost EVERY gold pundit is calling for.

The higher gold goes the more nervous investors and fund managers become over buying. It's nutsville. Maybe when gold goes $900 bid, they will wake up.

Gold has risen for two weeks and the HUI has gone nowhere. Ludicrous! When the light bulb goes off the HUI will rally 35 points in a day. All of a sudden there will be nothing for sale in the smaller golds and many of the good ones will double in days.”

From The Hightower Report, Futures Analysis and Forecasting:

“The gold market saw mostly favorable outside market conditions throughout the session, even if the US numbers weren't completely stellar and the Dollar wasn't particularly under heavy pressure. On the other hand, the oil market remained somewhat calm for most of the session despite concerns that the weekend could bring some surprise flight to quality Iranian development. In the end, the ramping up of equity prices into new highs seemed to suggest that ongoing growth and profitability was going to be extended in the US economy. The Press suggested that ongoing strength in the Euro was providing the lion's share of the gains in gold and considering that silver at times was lower on the day that argument seems to carry fundamental weight. In the end, the new high close seemed to signal that investment interest in gold came out of the week every bit as strong as it was when it entered the week.

The silver market was certainly the most vulnerable precious metals market in the final two sessions of the week. Apparently the silver market wasn't seeing as much currency related buying interest in gold and with silver failing to benefit from the stellar rise in copper it would also seem like the physical demand outlook for silver is being questioned. Certainly one looks to the investment demand and the conditions that measure the interest from that area and it is difficult no to come to the conclusion that investment demand for silver has remained strong.”

The U.S. dollar index fell to new 1 year lows and treasuries gained as the economically disappointing jobs report reduced expectations for further interest rate hikes after the fed’s next meeting.  The yield on the 10-year fell from its highest since May of 2002.

Oil remained near $70 as traders weighed ample supplies and flat demand versus geopolitical concerns.

The Dow, Nasdaq, and S&P rose on hopes for a pause in interest rates hikes soon.  The Dow rose to new 6 year highs.

Among the big names making news in the market Friday were Ford, Spitzer and Liberty Mutual, Aztar and Pinnacle, Washington Post, Toll Brothers, Warren Buffet, Warner Music, El Paso, Comverse, CBS, Microsoft and Massive, and Medco Health.

GATA Posts:

James Turk: Dollar's bear-market rally is over

Ben Bernanke, we'll be watching you

Gold & Silver Stock News Update from GoldReview.com:

AngloGold Ashanti’s (AU) earnings, Richmont Mines’ (RIC) earnings and exploration update, further commentary on Harmony Gold’s (HMY) earnings and possible plans to split into listed units,  Crystallex’s (KRY) debt conversion, Kimber Resources’ (KBX) April newsletter, Goldcorp’s (GG) private placement with Virginia Mines (VSQ.TO), Fronteer’s (FRG) drill results, Peru’s mining concerns, Barrick’s (ABX) Veladero mine output, and Silver Wheaton’s (SLW) plans to list on the New York Stock Exchange 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:

Standard Bank Converts Debt into Crystallex Shares - "Crystallex International Corporation announced today that Standard Bank Plc, has elected to convert US$7,500,000 principal amount of their US$14,315,000 loan, in accordance with the terms of the credit agreement dated December 23, 2005, among Crystallex's subsidiary, ECM (Venco) Ltd. as borrower, Crystallex as guarantor and Standard Bank as lender. As a result of the conversion, Crystallex has issued 3,765,841 common shares to Standard Bank." More
- May 05, 2006 | Item | E-mail

AXMIN Conference Call: Pre-Feasibility Study Results for the Passendro Gold Project, Central African Republic - More
- May 05, 2006 | Item | E-mail

Novicourt Inc.: First Quarter 2006 Press Release - More
- May 05, 2006 | Item | E-mail

Kimber Resources Inc. - Newsletter for April - "The main event in April was the release of Resource Estimate "M" which added 17% to total resources on the Carmen. Details, contained in the news release of April 20, include an increase in gold grade of 9.6% for Measured & Indicated and more than this for Inferred. Silver grades are marginally lower as drilling moves away from the main silver zones. As already announced, the factor we use for calculating the gold equivalent of silver has been revised to 75 to better reflect the prices of the two metals as well as our expectations of recoveries for each metal." More
- May 05, 2006 | Item | E-mail

Silver Wheaton to List on the New York Stock Exchange - "Silver Wheaton Corp. is pleased to announce the approval of application to list its shares on the New York Stock Exchange. Silver Wheaton expects that its common shares will begin trading on the NYSE on Tuesday, May 9, 2006. The NYSE has reserved the trading symbol "SLW" for Silver Wheaton's common shares. The Company will retain its primary listing on the Toronto Stock Exchange under the trading symbol "SLW"." More
- May 05, 2006 | Item | E-mail

Virginia to Complete a Private Placement of CA$5 Million with Goldcorp Inc. - "Virginia Mines Inc. is pleased to announce that further to the acquisition of Virginia Gold Mines Inc. by Goldcorp Inc. on March 31, 2006, Goldcorp has exercised its right to subscribe for 1,210,406 units of Virginia Mines Inc., which represents 5% of the number of Virginia common shares issued and outstanding on a non-diluted basis, for gross proceeds of $5,047,393." More
- May 05, 2006 | Item | E-mail

Centerra Gold Will Hold Its Annual General Meeting on Wednesday, May 10, 2006 - "Centerra Gold Inc. will hold its 2006 annual general meeting of shareholders on Wednesday, May 10, 2006 at the Esso Theatre, Hockey Hall of Fame, Toronto." More
- May 05, 2006 | Item | E-mail

Jasper Mining Corporation announces completion of airborne survey on Proximal property and acquisition of additional mineral tenure - More
- May 05, 2006 | Item | E-mail

Fronteer Development Group Inc.: More High-Grade Gold Discovered at Agi Dagi - "Hole A-177 returned 2.27 grams per tonne gold over 52.5 metres, including 6.35 grams per tonne gold over 6.0 metres. This new hole is located 50 metres to the northwest of hole A-164, which intersected 2.34 grams per tonne gold over 66 metres including 5.23 grams per tonne gold over 25.5 metres. The zone remains untested and open to the northwest." More
- May 05, 2006 | Item | E-mail

Western Copper Corporation Commences Operations - More
- May 05, 2006 | Item | E-mail

Global gold companies say costs squeezing margins - "Mounting operating costs ranging from soaring fuel prices and a weak dollar to new community relations strategies are squeezing profits for gold companies, and hurting their ability to take advantage of a price boom for the yellow metal, producers say. Gold prices are soaring near 25-year highs, and analysts and industry players expect still more gains. But high prices are accompanied by astronomical fuel costs, an exchange rate weighing dollar-denominated costs and equipment shortages." More
- May 05, 2006 | Item | E-mail

AngloGold profits double, beat expectations - "The world's third-biggest gold producer, AngloGold Ashanti Ltd, more than doubled first-quarter adjusted profits, beating analysts' expectations, and said on Friday output would rebound in the second quarter. Despite a dip in production, the South African company enjoyed a hefty jump in profits due to higher prices and the lack of one-off charges that appeared in the previous results." More
- May 05, 2006 | Item | E-mail

Louvem Mines Announces its 2006 First Quarter Results - More
- May 05, 2006 | Item | E-mail

Richmont Mines Inc. and Patricia Mining Corp: Update on the Exploration Results on the Island Gold Project - "The published results are for underground drilling performed on various systems of veins, and only those that intersected zones with mining potential showing continuity have been included. The highlights presented in Table 1 include several high grades found in the sub-parallel zones C, D, D1, E and E1. During the first quarter of 2006, 36 drill holes totalling 5,180 metres were drilled. The results for 18 holes have been completed, and those of the other 18 are still pending." More
- May 05, 2006 | Item | E-mail

Harmony Gold narrows Q3 headline loss - "South African miner Harmony Gold narrowed its headline loss in the third quarter on the back of higher gold prices, but production fell by 14 percent, due to holidays and low grades. Harmony, the world's fifth biggest gold producer, said on Friday output would at least partly bounce back in the fourth quarter, but cautioned that the bottom line will be hit by a big goodwill write-off from a recent acquisition." More
- May 05, 2006 | Item | E-mail

USCorp Announces Results of Drilling at Its Kingman Area Tailings Property - More
- May 05, 2006 | Item | E-mail

Drilling Has Begun On Largo's Northern Dancer Tungsten-Molybdenum Project, Yukon - More
- May 05, 2006 | Item | E-mail

YSV Announces New Board Appointment Release of Annual Financial Results - More
- May 05, 2006 | Item | E-mail

Intrepid Minerals Reports on Nustar Production Results - More
- May 05, 2006 | Item | E-mail

Metanor Resources Inc. Announces an Agreeemnt for the Acquisition of Halo Resources Ltd.'s 50% Interest in the Bachelor Lake Property, Quebec - More
- May 05, 2006 | Item | E-mail

Cascadero Copper Corporation: Drill Program Commences at Santa Rosa - More
- May 05, 2006 | Item | E-mail

Deep Drilling Extends Zones at the Redstone Mine - More
- May 05, 2006 | Item | E-mail

Southern Star Resources Receives Conditional TSX Listing Approval - More
- May 05, 2006 | Item | E-mail

Harmony mulls long-term split into listed units - "South Africa's Harmony Gold may split into several listed units down the line, if the gold price keeps rallying, swimming against the consolidation tide in the industry, its head said on Friday. Chief Executive Bernard Swanepoel also told reporters following a results presentation that small firm Western Areas, in which Harmony has a 29 percent stake, might consider buying Harmony's Target mine." More
- May 05, 2006 | Item | E-mail

HE-5 Resources, Corp. Completes Q1 2006 Opening Financial Statements - More
- May 05, 2006 | Item | E-mail

Southwestern Resources Corp.: Continued Positive Drill Results - More
- May 05, 2006 | Item | E-mail

Dynacor: proven and probable reserves of 223,570 tonnes at an average grade of 2.04% WO(3) for the Pasto Bueno mine - More
- May 05, 2006 | Item | E-mail

Crescent Resources Progress Report from the Matupa Gold Project, Brazil - More
- May 05, 2006 | Item | E-mail

Peru's gold deposits losing glitter, miners contend - "Peru is becoming increasingly unattractive for mining companies despite its huge mineral wealth because of its inability to pacify anti-mine protesters, guarantee land rights and keep its promises over contracts, say miners, consultants and nongovernmental groups." More
- May 05, 2006 | Item | E-mail

Barrick Veladero output at 900,000 oz gold from '09 - "Canada's Barrick Gold Corp. expects to produce some 900,000 ounces of gold per year at its Veladero mine in Argentina from 2009, up from 700,000 ounces now, a company executive told Reuters on Thursday." More
- May 05, 2006 | Item | E-mail

Richmont Mines Announces its 2006 First Quarter Results - "Richmont Mines announces total revenues of $8,252,787 for the first quarter of 2006, compared with $7,364,652 in 2005. In total, 12,108 ounces of gold were sold at an average price of US$562 ($646) and yielded revenues of $7,823,186. These sales include 8,362 ounces from the Beaufor Mine and 3,746 ounces from the East Amphi Mine, which began commercial production on February 1st, 2006. During the first quarter of 2005 12,440 ounces of gold were sold at an average price of US$434 ($526) and thus yielded revenues of $6,541,133. Other revenues totalled $429,601 in 2006, compared with $823,519 for the same period in 2005." More
- May 05, 2006 | Item | E-mail

AngloGold Ashanti First Quarter Results - "AngloGold Ashanti reported a significantly improved financial performance for the first quarter of 2006, with headline earnings before unrealised non-hedge derivatives and fair value loss on the convertible bond up 110% to $86m, primarily as a result of strong participation in the gold price rally. Price received for the quarter was $545/oz, 2% under the spot price or $69/oz higher than in the fourth quarter of 2005." More
- May 05, 2006 | Item | E-mail

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- Written by Chris Mullen

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

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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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