Miner's shares 11% higher 2011


Shares of copper producer Lundin Mining Corp. surged by as much as 11 per cent on the Toronto Stock Exchange Friday on continuing speculation the company had found a Chinese buyer, even as the company denied it was on the verge of a deal.

Phil Wright, chief executive with Lundin, told Bloomberg the company was still conducting a strategic review on its options after its proposed $9-billion merger with Inmet Mining Corp. fell apart in March.

"I don't think people should be sitting on the edge of their seats," he said, downplaying expectations of an eminent announcement.

There were reports Friday of interest from a Chinese buying group, including base metal miner Jinchuan Group Ltd. and sovereign wealth fund China Investment Corp.

Calls to Lundin were not returned. The company released a statement repeating Wright's point, but made no comment on interest from the group or other buyers such as China's Minmetals Resources Ltd.

Minmetals attempted to purchase Equinox Minerals Ltd. but was rebuffed earlier this month after the company found a surprise buyer in Barrick Gold Corp.

Investors appear to be expecting a hefty price tag for Lundin, however, as heavy trading sent shares in the company to a close of $9.26 on the Toronto Stock Exchange, up 11.03 per cent, or 92 cents. Shares in the company have risen 27.5 per cent since the beginning of the year.

"It all depends on your view of copper prices," a mining analyst who chose to remain anonymous said. "At $3.75 a pound, Lundin could get $10.30 a share."

One of Lundin's most attractive assets is its 25 per cent stake in the Tenke Fungurume copper mine in the Democratic Republic of Congo. The analyst suspects if Lundin fails to close a sale with the Chinese, who are hungry for base metals such as copper to fuel their economic growth, the company may split its assets up on the market instead.

"Lundin has probably talked to all the traditional companies already. I think there aren't a lot of buyers outside of maybe Inmet for the European assets and maybe Freeport McMo-Ran will want to buy the rest of Tenke," he said. "But it's a lot harder to negotiate when there are three people at the table not two."

Lundin kicked off the whole saga earlier this year when it announced plans to merge with Inmet Mining, but scrapped that when it got a bid from Equinox. However, once Equinox itself became the target of takeover interest, it dropped its bid for Lundin, leaving the company to find another suitor.

Gold go climbings to new high of Rs23,175/10 gram, silver slips


Gold prices surged to a new peak and crossed the Rs23,000 mark in the national capital today on sustained buying by speculators, triggered by a strong rally in overseas markets. Silver, however, dropped due to reduced offtake.

The yellow gold spurted by Rs655 to all-time high of Rs23,175 per 10 grams as the metal in international markets climbed to a record high of $1,570.60 an ounce in day-to-day trading.

Hectic buying by stockists and retail customers ahead of 'Akshya Tritya' festival, a traditional day for buying gold further bolstered the market sentiment.

Silver, however, lacked necessary follow-up support on reduced offtake at existing higher levels and shed Rs500 to Rs71,500 per kg.

Market analysts said the recent surge in gold prices in the domestic markets, driven by a firming global trend on bets that the dollar will extend a slump, boosted the demand of the metal as a store of value.

They added that the upsurge was speculative in nature and scattered small buying for the coming festival and marriage season supported the market trend.

On the domestic front, gold of 99.9 and 99.5% purity rose by Rs655 each to a record high of Rs23,175 and Rs23,055 per 10 grams, respectively.

Sovereign followed suit and rose by Rs100 to a fresh high of Rs18,500 per piece of eight gram.

On the other hand, the white metal attracted profit-taking by dealers at existing higher levels and recorded a moderate loss of Rs500 to Rs71,500 per kg, while weekly-based delivery fell by Rs570 to Rs70,600 per kg.

Similarly, silver coins lost Rs500 to Rs77,000 for buying and Rs78,000 for selling of 100 pieces.

Copper as an Inflation Hedge 2011


Inflation is the hot topic on the market these days, as consumers are beginning to feel the effects of rising costs on their pocket books. So far this year, record high grain-prices and ensuing high food costs have led to violent riots . Another hit to consumers, we are paying just as much at the pump as we were pre-recession, despite the fact that the cost of a barrel of oil is significantly below the pre-recession peak. While the recovery is still fragile, especially in the United States, many investors are preparing for a vicious inflationary bite, and one that many experts expect will be amplified compared to previous cycles, thanks in part to the Fed's ambitious quantitative easing programs, embarked upon to stoke the ailing American economy.

As inflation strikes, investors need to position themselves to prevent against loss of wealth. Many investments have been used as inflationary hedges, including various commodities, real estate and stocks. While stocks tend to gain against rising prices, they can be volatile and need a longer-term holding in order to smooth out the spikes and dips. Real-estate can appreciate, but the current trend in the U.S. is rising living costs and stalling home prices. What remains are commodities. Commodities can be a viable source of inflation protection because generally, as the economy grows, so does the cost of inputs. Not all commodities are created equal when it comes to inflation protection. The classic choices include silver and gold , however, taking data from the recent economic cycle, some economists are beginning to say that in the coming cycle, copper may be a better hedge that the more popular gold and silver.

The biggest possible barrier to India's growth markets

The biggest possible barrier to India's growth markets

FY10 was a thumping year for the auto industry as sales volumes zoomed. Strong growth was seen across segments - commercial, two-wheelers, three-wheelers and passenger vehicles. This buoyancy continued in FY11 too, as total domestic auto sales volumes grew by a robust 26% YoY. This was led by healthy demand across both urban and rural areas. What is more, this growth was witnessed across product segments as can be evinced from today's chart of the day. That said, although growth has been robust over the past two years, whether this can be sustained going forward remains a challenge. This is on account of rising inflation which has led to RBI hiking interest rates and higher input costs.

Gold has seen its prices touch new highs. And along with it the gold Exchange Traded Funds (ETFs) have also seen their prices spiraling upwards. But the rise in prices of the latter has become a cause of concern for all. A large part of the price increase in ETFs is due to the huge amounts invested in them by the hedge funds. And these hedge funds tend to book profits when their targets are realized. Whenever this would happen, it would lead a decline in the prices of these ETFs. The worrisome factor is that the pricing of these ETFs is linked to the pricing of gold. Experts around the world, including IMF (International Monetary Fund) are concerned that any exodus of funds from the ETFs would lead to a decline in the prices of gold. However, the fund houses that have launched these commodity based ETFs have stated that they do have adequate mechanisms in place to prevent this from happening. Even commodity experts feel that any decline in ETF prices would not lead to a decline in gold prices. It is actually the other way round.

Rise and rise of silver Is one big conspiracy


Conspiracy theories abound on the white metal's spectacular rise.

Silver has been on steroids for the last one month.
It has risen 24% from Rs 58,820 in just one month, prompting retailers to offer advance booking to investors before Akshay Tritiya.

Though prices of the white metal have been rising all through the past one year, the frenzy has been visible in the last one month.

Typically, gold and silver move in tandem and the ratio between them is 55.
Essentially, it means how much silver one can buy for the price of an ounce of gold.
The ratio has been narrowing in the last few months as silver has run ahead of gold.
Text: Malini Bhupta, Business Standard
Image: Silver bars are displayed in the Austrian Gold and Silver Separating Plant.
Reuters Images

China carbon emissions peaks by 2025-2030- study by U.S.


China, the world's biggest emitter of greenhouse gases, could peak in emissions by 2030 or earlier, says a study from U.S. researchers who foresee Chinese demand for appliances, buildings and much industry reaching "saturation" around then.

The study by energy and emissions experts at the Lawrence Berkeley National Laboratory in California adds to a growing body of studies that say China could reach its maximum output of carbon dioxide (CO2) within two decades.

That matters for more than China. Its emissions path will be crucial to determining whether the world can restrict total greenhouse gas emissions to levels less likely to trigger dangerous climate change, such as more intense droughts, floods and storms that threaten crops and economic growth.

"Once nearly every household owns a refrigerator, a washing machine, air conditioners and other appliances, and once housing area per-capita has stabilized, per-household electricity growth will slow," said co-author Mark Levine in a statement.

Gold Prices Kalimantan Private Placement With Freeport


VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 29, 2011) - Kalimantan Gold Corporation Limited (the "Company") (TSX VENTURE:KLG)(AIM:KLG) is pleased to announce that a wholly owned subsidiary of Freeport-McMoRan Exploration Corporation ("Freeport") has subscribed for the purchase of 2,500,000 common shares of the Company at a price of C$0.14 per common share for total proceeds of C$350,000.

The placement will close the second business day following receipt of the conditional acceptance of the TSX Venture Exchange.

The Company and Freeport entered into a joint venture agreement in relation to the Company's KSK Contract of Work copper project in Kalimantan, Indonesia as announced on April 19, 2011. Pursuant to the joint venture agreement the private placement was priced at 125% of the volume weighted average price of the seven day period following execution of the agreement.

About Kalimantan Gold

Kalimantan Gold Corporation Limited is a junior exploration company listed on both the TSX Venture Exchange in Canada and on AIM in London. The Company has two exploration projects in Kalimantan: the Jelai epithermal gold project in East Kalimantan (which has been optioned to Tigers Realm Minerals) and the KSK Contract of Work in Central Kalimantan with multiple porphyry copper and gold prospects (which has been optioned to Freeport). In addition, the Company continues as agent for the shareholders of PT Indobara Pratama ("IBP") who are seeking to sell IBP's coal concession in exchange for a share of the proceeds and active negotiations with a qualified purchaser are in process.

RFC Corporate Finance Ltd acts as KLG's Nominated Adviser for the purposes of its AIM listing, contact Stuart Laing, ph: +618 9480 2506 or email:

This news release contains forward-looking statements that are based on the Company's current expectations and estimates. Forward-looking statements are frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate", "suggest", "indicate" and other similar words or statements that certain events or conditions "may" or "will" occur. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause actual events or results to differ materially from estimated or anticipated events or results implied or expressed in such forward-looking statements. Such factors include, among others: the actual results of current exploration activities; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; possible variations in ore grade or recovery rates; accidents, labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing; and fluctuations in metal prices. There may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein.

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China’s coal imports rebound amid to power crisis


SHANGHAI: Lofty steam coal prices in China and a worsening power shortage in the world’s second-largest economy is set to boost imports of the fuel from Indonesia and Australia over the summer months, ending months of muted demand.

The current power crunch has also begun to hurt domestic demand of aluminium and zinc as smaller smelters suspend output.

However, an extended power restriction could eventually cut China’s metals production and lift its overseas purchases in the coming months, traders and analysts said on Friday.

China’s steam coal prices, which rose steadily over April to a 4-month high of 820 yuan ($126.116) a tonne this week, has forced many state-owned and private power plants across the country to cut power production as a way of reducing losses.

Some privately-owned small to medium utilities have even shut down plants to stem financial bleeding, after they struggled for months to make ends meet.

For those power plants that are still in business, every cent of savings counts, and imports are looking ever more attractive as rising domestic prices reopen the arbitrage window for Indonesian and some off-spec Australian coal.

“Business has definitely picked up over the past few weeks and I think demand for imports could be even stronger in the coming months,” said a Beijing-based trader.

Although China, the world’s biggest consumer and producer of coal, suffers from chronic power shortages during the summer and winter months, the rationing has come earlier by nearly two months this year, amid government warnings that the country could face one of its worst summer power shortages.

Local governments in eastern Jiangsu, Jiangxi and Zhejiang, southern Guangdong and the central Henan region have already begun to restrict power supply to the energy intensive industries, with some heavy industry manufacturers in Zhejiang ordered to operate only five days a week, analysts said.

The current power restrictions have forced small to mid-sized steel, cement, aluminium, lead and zinc plants in some provinces to suspend output for several days a week.

Upper Big Branch Mine Massey plans to seal


CHARLESTON, W.Va. -- Massey Energy has told federal regulators it plans to seal the Upper Big Branch Mine, where 29 miners died a year ago in the worst U.S. coal-mining disaster since 1970.

Company officials are scheduled to meet next week with state mine safety regulators and with the U.S. Mine Safety and Health Administration to discuss a plan for sealing the mine.

The move comes as shareholders for Massey and Alpha Natural Resources prepare for a June 1 vote on Alpha's takeover of Massey, and as one investigation of the mine disaster is nearing completion.

Release of a report by the independent team, headed by longtime mine safety advocate Davitt McAteer, is expected sometime within the next few weeks.

MSHA has scheduled a public briefing for late June for an update on its ongoing probe of the April 5, 2010, explosion. But a formal MSHA final report is not expected for months.

Before the explosion, the Raleigh County mine employed about 200 workers and produced more than 1.2 million tons of coal in 2009, according to company data reported to MSHA.

Previously, now-retired Massey CEO Don Blankenship had indicated several times that the company hoped to reopen Upper Big Branch.

In its annual report to stockholders, filed in March, Massey reported that government investigations would force Upper Big Branch "to continue to be closed for an extended period of time, the length of time we cannot predict at this time. It is also possible that we may be required by regulators to permanently close this mine," the company said.

It is not clear if Massey ultimately plans to seek government approvals to open a new mine to recover coal left in the Upper Big Branch Mine's reserves. Company officials did not immediately respond to a request for comment Friday afternoon.

Government investigators believe the deadly blast involved an ignition of methane gas that was made far worse by a buildup of highly explosive coal dust underground.

Reach Ken Ward Jr. at or 304-348-1702.

Denial Burns Brightly Bernanke Inflation

Denial Burns Brightly Bernanke Inflation

“Our interpretation of the increase in gas prices is the economist’s basic mantra of supply and demand,” mused chairman Ben Bernanke during his first-ever regularly scheduled press conference on Wednesday. At that moment, the price of oil reached a new post-2008 high.

“The Federal Reserve believes that a strong and stable dollar is both in the American interests and in the interest of the global economy,” he also said. At that moment, the dollar index reached a new post-2008 low.

Back when Bernanke signaled the advent of a new round of easy money – QE2 – during his annual speech at Jackson Hole, Wyo. last August, oil was $75 and the dollar index was at 83…........more

Oil peak on near 31-month weak dollar, unrest


LONDON: Oil prices hovered near 31-month highs as a weak dollar and violence in North Africa outweighed concerns about slowing growth in top consumer the United States.

In its last trading day of April, U.S. crude was heading for its eighth consecutive month of gains, the longest run of monthly increases since 1983, Reuters data showed.

U.S. crude was down 18 cents at 1027 GMT at $112.68 after settling at $112.86 a barrel on Thursday, the highest since the close on Sept. 22, 2008.

Brent futures were down 2 cents to $125 a barrel on Friday, $2 short of its 2011 high of $127.02, reached on April 11.

Both U.S and Brent crude regained some ground lost earlier on Friday after euro zone data showed the inflation rate rose further above the European Central Bank's target in April.

The data increased the chances of another interest rate rise in June, despite weakening economic sentiment. The news helped push the dollar index down against a basket of major currencies , with the greenback languishing near three-year lows.

"European markets are becalmed by three consecutive short trading weeks, and market activity has been fairly limited during this time. Geopolitical concerns in North Africa and the Middle East remain, with the conflict in Libya at an impasse and Syrian unrest increasing," said Lawrence Eagles from JP Morgan.

Forces loyal to Libyan leader Muammar Gaddafi on Friday attacked the Tunisian town of Dehiba, near the Libyan border,.

Morocco, which borders major oil and gas producer Algeria, said a bomb that killed at least 14 people on Thursday in its busiest tourist destination was a terrorist act.

Gold climbs, silver slips to new high in 2011 Mumbai


MUMBAI: Gold prices climbed a new peak at the domestic bullion market here today at Rs 22,145 per ten grams on renewed stockists' as well as stray local buying triggered by surging global cues .

Silver, however, dropped owing to reduced speculative buying amid profit-taking.

Standard gold (99.5 purity) edged higher by Rs 15 per 10 grams to finish at Rs 22,145 from Thursday's closing level of Rs 22,130. Pure gold (99.9 purity) also added by a similar margin to settle at Rs 22,250 from Rs 22,235 previously.

However, silver ready (.999 fineness) dropped by Rs 195 per kg to close at Rs 72,910 from yesterday's closing level of Rs 73,105.

In Europe, gold shied away from hitting fresh record highs on the back of a weak dollar. Spot gold was bid at USD 1,536.30 an ounce in early trade, while silver was bid at USD 48.86 an ounce.

The fundamentals underpinning the surging gold price 2011


Peter Ker
April 30, 2011

For a man carrying the title of treasurer, Peter Costello sure seemed comfortable getting rid of the treasure.
It was the winter of 1997, and the Reserve Bank of Australia had decided that a gold price about $450 an ounce was the ideal time to part with two-thirds of its bullion.
Conducted in secret over several months, the move spectacularly punctured both the gold price and confidence in the local mining industry.

As the utterances of the US Federal Reserve chairman, Ben Bernanke, helped propel gold to new heights this week, the metal that seemed to have lost its lustre in 1997 is fast reclaiming its standing as the world's currency of choice.

Amid the sandalwood trees east of Kalgoorlie, Chris Cairns can hardly believe his luck.
In the six years since his company, Integra Mining, acquired the Randalls deposit, the international spot price for gold has risen by close to 350 per cent.
In the seven months since the first gold was poured at the site in September, the price has leapt 17 per cent.

Gold and Silver April 29, 2011 review and analysis



Precious metals soared to another record high on Thursday, as a falling dollar and signs that the Federal Reserve would maintain a loose monetary policy boosted precious metals appeal as a hedge against inflation and economic uncertainty.


- Holdings in the SPDR Gold Trust, the world’s largest gold-backed exchange traded fund, stood at 1,229.64 tonnes by April 28, remains unchanged from the previous business day.

- Holdings in the world’s largest silver backed exchange-traded fund iShares Silver Trust fell to 11053.20 tonnes by April 28, remains unchanged from the previous business day.

- The explosive growth of precious metalslinked exchange traded funds has prompted some market watchers to warn that those shiny investment vehicles could increase the speed and depth of a future crash.


Precious metals are trading higher today. We expect a further rise in the prices of precious metals on account of a weaker dollar overseas.

Oil and Gas April 29, 2011 review and analysis



Crude oil edge up after volatile trading on Thursday, but settled at their highest level since September 2008 as soft economic data reinforced expectations the Federal Reserve will stay with its loose monetary policy that has pressured the dollar.


- U.S. crude oil imports in fell in February, after increasing for three consecutive months, the Energy Information Administration said on Thursday.

- OPEC may cut oil output if prices fall back to just $90 a barrel, PFC Energy said on Thursday, as Middle Eastern members’ current accounts have been strained as they hike social spending in a bid to lower the chance of internal unrest.

- High world oil futures prices could rise yet further if the European Union puts sanctions on Syrian oil this week, although the country exports modest amounts and the quality is low, analysts and traders said.

- A tanker with the first major oil shipment from rebel-held east Libya is expected to arrive in China next week, traders said on Friday, but it remain unclear who the buyer of the cargo is.

- Russia’s government will hike export duties on gasoline as the world’s largest oil producer fights fuel shortages on the domestic market, government sources said on Thursday.


Crude oil prices are trading firm today. We expect a further rise in the prices of crude oil on account of the ongoing tensions in middle-east North African nations.

All of the factors that places for the last 10 years have brought gold to where it is today


Mark Serdan
Amid record-setting gold prices this month, Mark Serdan remains bullish on bullion. "All of the factors that have been in place for the last 10 years have brought gold to where it is today," says the manager of the $163-million BMO Precious Metals. "If anything, those factors are even stronger now."

Key to Serdan's argument is the mounting U.S. debt and deficit. "The aggregate debt is now US$14 trillion. The deficit over the next five years is forecast to be US$1 trillion-plus per year," he says. "Fast-forward five years, and the aggregate debt will be over US$20 trillion. The interest cost alone is mammoth."

While investors will continue to buy U.S. treasuries, "they are also looking for diversification alternatives," says Serdan. "And gold is naturally seen as that."

Although some naysayers maintain gold is in a bubble, Serdan notes that bullion represents less than 0.5% of global assets. "Is gold in a bubble? I'd argue that there is still a lot of upside."

Largely a bottom-up investor, Serdan runs a portfolio of about 60 names. "We want to give investors the opportunity for growth and return, while still mitigating risk. I have a bullish picture for the next five years, but we will see profit-taking from time to time."

From a structural viewpoint, the portfolio recently held about 30% in mid-cap gold and silver producers, 10% in small producers, and 42% in gold and silver firms that are in the exploration or advanced-exploration stage. There is also 13% held in senior gold miners.

When it comes to exploration plays, Serdan looks for companies that have strong management and an opportunity to increase their reserves. Based on a blend of quantitative and qualitative factors, he arrives at a target price for the stock. He usually starts with a small holding, and adds to it over time. The limit on single holdings is 5.5%. Turnover has been moderate, at 78% in 2010.

One favourite is Keegan Resources Inc. KGN . The junior miner is active in Ghana, and its Esaase mine has a deposit that could expand from 3.5 million ounces to about six million. "They will have success through the drill bit," says Serdan. "And it's a potential acquisition target."

The stock is currently trading at about $9, but Serdan believes it could reach $12 within 18 months. "When you get an early-stage project, that's the opportunity," he says. "There is risk mitigation, and over time your winners will outweigh your losers."
A Windsor, Ont., native, Serdan is a chartered accountant who turned to money management. After graduating with an honours bachelor of commerce in 1994, he articled at Price Waterhouse, as it was then known.

"The CA is like a working MBA; it gives you the opportunity to look at all sorts of companies and get hands-on experience," says Serdan. "But money management was what I really wanted to do."

In 1997, he joined the investment brokerage BMO Nesbitt Burns and worked for two years as a research associate. After spending two years in the firm's investment-banking division, Serdan moved to UBS Global Asset Management, where he began working on a small-cap portfolio.

While at UBS, Serdan also covered natural resources and gradually became a precious-metals specialist. "I believed in the sector," says Serdan, noting that gold was around US$300 an ounce in 2002. "There was risk in currencies, too. But it wasn't as bad."

Serdan joined BMO Asset Management Inc. in late 2009 as a vice-president and portfolio manager. He assumed responsibility for BMO Precious Metals several months after the sudden death in June 2009 of the fund's long-time manager, Bill Belovay.

For the 12 months ended March 31, the fund returned 61.4%, compared with 55.1 % for the median return in the Precious Metals Equity category, placing it in the second quartile. Serdan also co-manages BMO Resource, with Robert Taylor.

Looking ahead, Serdan does not have a specific target for gold. He'd rather focus on factors such as the demand-supply imbalance. "They are moving more and more dirt, but getting less gold," he says, adding that global annual production has fallen to about 80 million tonnes from 85 in the past decade.

"It's Economics 101: lower supply and higher demand. I'm looking out five years and don't see any change on the horizon. We will also see inflation at some point -- and that bodes well for gold."

While Serdan's portfolio is reasonably diversified, he is emphasizing mid-caps and advanced exploration plays such as Orezone Gold Corp. ORE . Headed by Ron Little, who has a track record of success in Burkina Faso, Orezone Gold is developing the Bombore deposit in that country.

"We expect them to have a resource of about five million ounces by the end of this year, and ultimately it could be much bigger than that," says Serdan, who has a target of $7 in one year. Early this week, the stock was trading at $4.80.
Read more

Gresham's Law, Vietnamese Dong and the Gold


LONDON (BullionVault) -

Governments are often tempted to live beyond their means. Today, that means national debts and quantitative easing. But a few hundred years ago, it meant debasing coinage.

Silver and gold coins would be 'clipped' - with a tiny quantity of their metal shaved off the edge every time they passed through government hands - or they would be minted with a lower precious metal content than their face value stated. This would enable the monetary authorities to produce more coins for the same amount of bullion, increasing the government's spending power in the marketplace.

The net result was that coins with identical face values did not necessarily hold the same commodity value. And this often led to a rather interesting phenomenon. When people knew there were both 'good' and 'bad' coins floating around, they tended to spend the bad and hang onto the good. Before long, all the good money disappeared into hoards. The only money in circulation was bad money.

This is known as Gresham's Law, named after the sixteenth century financier Sir Thomas Gresham. In its most simple form, Gresham's Law is often stated as "bad money drives out good money", and it's no mere historical curiosity. Gresham's Law is alive and kicking today, nowhere more than in Vietnam.

Vietnam's economy uses three different forms of money today. There is the official currency, the Vietnamese Dong. There is also the US Dollar, which Vietnamese people tend to trust a bit more. And then, there is gold.

Gold and silver prices April 29, 2011

Gold and silver prices April 29, 2011


Precious metals soared to another record high on Thursday, as a falling dollar and signs that the Federal Reserve would maintain a loose monetary policy boosted precious metals appeal as a hedge against inflation and economic uncertainty.


- Holdings in the SPDR Gold Trust, the world's largest gold-backed exchange traded fund, stood at 1,229.64 tonnes by April 28, remains unchanged from the previous business day.

- Holdings in the world's largest silver backed exchange-traded fund iShares Silver Trust fell to 11053.20 tonnes by April 28, remains unchanged from the previous business day.

- The explosive growth of precious metalslinked exchange traded funds has prompted some market watchers to warn that those shiny investment vehicles could increase the speed and depth of a future crash.


Precious metals are trading higher today. We expect a further rise in the prices of precious metals on account of a weaker dollar overseas.


Dollar low at 3-yr on Fed outlook, silver glitters


The dollar floundered at 3-year lows against a basket of currencies on Friday as players ratcheted up bets on the Fed's ultra-easy monetary stance, sending commodities like silver to a record high and keeping stocks well supported.

Silver and gold prices scored fresh records benefiting from inflation concerns as a result of the Fed's ultra-loose policy even though demand for risky assets rose.
With a fresh batch of US economic data in the form of rising claims for jobless benefits also offering no succour to the ailing dollar, the greenback's index, which tracks its performance against a basket of major currencies, fell to its lowest level since July 2008 before recovering somewhat. It is down 1.4% so far this week, poised for its worst week since January 22.

Gold, silver shining as Fed spurs commodity buying mumbai 2011


Gold price hit a record high on Thursday, silver rebounded and aluminium touched an almost three-year peak as investors poured more cash into commodities after the U.S. Federal Reserve signalled it would extend its loose monetary policy and the dollar slid.

* Spot gold hits record at above $1,534 an ounce, silver up
* Aluminium, copper gain on weaker dollar
* Dollar sinks to a 3-year low; Fed in no rush to tighten
* Coming up: U.S. Q1 GDP preliminary at 1230 GMT

Investors bet that a rally in commodities, which has been fuelled by liquidity from a second round of quantitative easing (QE2), would press on -- at least in the short term.

It's gold and silver that have done the best, hence that gives us a signal that this isn't as much about optimism about genuine growth as it is about asset price inflation on the one side and a weak dollar and generally weak paper currencies on the back of it, said Sean Corrigan, chief investment strategist at Diapason Commodities management in Switzerland.

Commodities from copper and oil to corn and zinc rallied as investors chased higher returns after the dollar index, a measure of the greenback's strength against a basket of currencies, dipped to a three-year low.

The slide occurred after the U.S. Fed signalled on Wednesday there was no rush to reverse low interest rates.

The knee-jerk reaction may not last, however, if there are no signs of another round of quantitative easing while some countries ratchet up interest rates, Corrigan added.
Gold price record, silver price, aluminium price, investors commodities, U.S. Federal Reserve



GOING FOR GOLD: Investors sent gold prices above $1,500 an ounce on concerns about the U.S. government debt, European financial problems and inflation. Gold later settled at $1,495.10 an ounce.ECONOMIC WORRIES: Investors are worried after Standard & Poor's Rating Service lowered its long-term outlook on U.S. government debt because of the massive budget deficit. Europe is dealing with financial issues and several countries are coping with inflationDRY-WHEAT: Wheat prices rose after a government report showed 36 percent of the winter wheat crop was in good-to-excellent condition. That compared with 69 percent a year ago.

Rising costs OceanaGold's take edge off earnings


Rising mining and processing costs took the edge off first-quarter earnings for OceanaGold Corp, with after tax profit of $US14.8 million recorded in the three months to March 31, down from $US20.7 million in the previous quarter.

While average gold prices for the period were a record $US1,401 per ounce and recovery rates across the company's South Island gold mines rose to 83.4% from 77.9% in the previous quarter, cash operating costs per ounce came in at $US687, compared with $US596 in the three months ended December 31.

That was the major driver for a reduction in cash operating margin per ounce falling to $US714, from $US783 in the December quarter.

Gold prices moved higher as USD weakness persists


GOLD moved marginally higher in overnight trade as USD weakness per-sists and equities gained ground even after a weaker than forecast reading on GDP and Unemployment Claims data. Gold finished US trade higher by $5 at $1,535. Our target earlier this month at $1,540/50 has pretty much been reached and that is why we have turned neutral in the extreme short-term.

We remain medium-term bulls and expect prices to hit new record highs above $1,600 by the end of June. We see some consolidation in the short-term and we have locked in our profits and prefer now to buy into weakness. We would look to re-enter this trade on dips back towards $1,475. We may not see this pullback and if we continue through $1,550 we will re-enter a long position.

Compass Direction – NEUTRAL

3rd Support 2nd Support 1st Support SPOT 1st Resistance 2nd Resistance 3rd Resistance
$1,509/10 $1,517/18 $1,525 $1,536 $1,538/40 $1,550 $1,561/62

AUS 200 finished US trade only marginally higher last night as commodities consolidated. It is surprising that we did not see a higher close on the futures and we continue to see an underperformance by Australian equities over US equities.

The AUS 200 finished US trade stronger by only 2 points at 4,875. We remain bullish, however, it is start to become a concern that we continue to underperform both regional and offshore equity markets this week.

The stronger than forecast CPI reading earlier this week seemed to be the catalyst and potentially higher interest rates coupled with a strong AUDUSD could see investors park there money elsewhere or in alternative markets to equities. Only a close below 4,840 will negate our bullish stance. Resistance remains at 4,900.

Compass Direction – BULLISH
3rd Support 2nd Support 1st Support SPOT 1st Resistance 2nd Resistance 3rd Resistance
4800 4820 4840/50 4875 4880 4900 4920 

Gold glitters record Rs 22,470 at India


NEW DELHI: Gold set a new record at Rs 22,470 per 10 grams on Thursday on brisk buying by stockists and jewellers for the upcoming 'Akshaya Tritiya' and marriage season, driven by a record rally in global markets. Silver also surged Rs 3,400 to Rs 72,000 per kg. The white metal had hit a record level of Rs 74,300 on April 25.

Traders said Akshaya Tritiya festival (May 6), which is considered auspicious for buying gold, bolstered trading sentiments for the yellow metal. The market also received support as the gold advanced to a record high in international markets, after the US Fed pledged to keep interest rates near zero to bolster the recovery, weakening the dollar and boosting demand for precious metals as a store of value.

Gold in the Asian region gained 0.4% to reach a never-seen-before level of $1,533 an ounce. Silver also strengthened by 0.6% to $48.13 an ounce, approaching the record level of $49.79 set on April 25. The Fed signalled on Wednesday that it will maintain monetary stimulus and kept its target rate for overnight lending between banks at zero to 0.25%, while ending $600 billion of bond purchases on schedule in June.

On the domestic front, gold of 99.9 and 99.5% purity surged Rs 275 each to Rs 22,470 and Rs 22,350 per 10 grams, respectively. Sovereigns followed suit and rose by Rs 100 to a new peak of Rs 18,300 per piece of eight grams. Silver ready staged a strong come back and spurted by Rs 3,400.

Sydney Mining Club Present Arun Kumar Jagatramka, Chairman of Gujarat NRE Coking Coals Limited (ASX:GNM) 2011


Sydney, April 28, 2011 (ABN Newswire) - On May 5th, 2011 at 12:30 PM, the 155th Sydney Mining Club presents Arun Kumar Jagatramka, Chairman of Gujarat NRE Coking Coals Limited (ASX:GNM).

China and India would have remained sleeping dragons and crouching tigers without the advent of coal mining and imports to meet the huge energy demand these fast developing giant economies require to feed their growth.

Come and listen to the fascinating story behind the Gujurat coal mining arm, a member of the Gujurat NRE Group which has evolved significantly in recent years from a company mainly engaged in trading coal and coke processing into coking coal mining company with a resource of 560Mt; a growing coke processing capacity targeting 3Mtpa; wind power capacity of 87MW; an oil and gas exploration arm with major acreage in the central Canning basin; and several other interests.

Arun Kumar will fill you in on why his Indian parent company likes Australia and how important our mineral; resources are to his home country's future.

India, Pakistan to initiate steps in power for trade petroleum


Recognising that economic engagement will help build mutual trust, India and Pakistan today agreed to initiate steps for trade of electricity and petroleum products between them.

Besides, commerce secretaries of the two countries agreed on a slew of measures to realise the full potential of bilateral trade which at present is less than $2 billion.

These included recognition by Pakistan that "grant of MFN (Most Favoured Nation) status to India would help in expanding bilateral trade relations".

The agreed minutes of the two-day talks held here between India's Commerce Secretary Rahul Khullar and his Pakistani counterpart Zafar Mahmoood took 19 decisions, including the ones in key areas like examining feasibility of cross-border trade in electricity and all types of petroleum products.

"Both sides agreed that increase in trade and economic engagement would help not only in in the mutual quest for national development, but also contribute to building trust between the two countries," the minutes said.

Both the sides expressed intent to explore the feasibility of entering into a preferential trade arrangement by extending tariff concessions on products of interests to both the neighbours.

Recognising that facilitation of business visas was essential for expansion of trade, it was agreed that the private sector, through officially recognised joint chambers, would be involved in this regard.

The last round of bilateral trade talks were held in August 2007. However, economic engagement went into a hiatus following terrorist attacks on Mumbai in Novermber, 2008.

UPDATE 2-Coal miner Consol's Q1 profit beats Street on 2011


* Q1 EPS 84c/shr v Street view 80c/shr

* Revenue $1.4 billion

* Says increasing 2012, 2013 coal production (Updates with company, analyst comments, production data, outlook)

NEW YORK, April 28 (Reuters) - Coal and natural gas company Consol Energy (CNX.N) beat Wall Street estimates with a big jump in quarterly profit, helped by higher-than-expected coal sales and surging prices.

The company also raised its coal production targets for 2012 and 2013 and said it will reopen an idled Virginia mine and expand its Baltimore port capacity to handle growing demand for exports.

First-quarter net income was $192 million, or 84 cents per share, compared with $100 million, or 54 cents per share, a year earlier, the Pittsburgh-based miner said on Thursday.

Total revenue rose to $1.4 billion, driven by coal sales of 16.7 million tons, as recent flooding in Australia restricted supply and boosted prices for steel-making metallurgical coal in particular.

Analysts on average were expecting earnings of 80 cents per share, according to Thomson Reuters I/B/E/S.

"The bottom line is (that) with a solid quarterly beat, positive strategic developments announced, and encouraging met (metallurgical) coal commentary, we expect Consol to be a solid outperformer today," said analyst Jeremy Sussman, of Brean Murray Carret & Co.

Earlier this month, Consol said first-quarter coal production was 17.2 million tons and it increased its 2011 production goal from a range of 59 million to 61 million tons to between 60 million and 62 million tons.

On Thursday it also increased its 2012 and 2013 targets by 500,000 tons each -- to a range of 59.5 million to 61.5 million tons for both years.

During the first quarter, the company said the average realized coal prices increased by about $10 per ton while costs increased about $2 per ton compared to the prior year.

"A cold European winter, coupled with an improving economy and changing supply dynamics, has created increased demand for U.S. coals at pricing equal to or better than can be achieved domestically," Consol said in its earnings statement.

The company said it had decided to reopen its idled Amonate Complex in Amonate, Virginia, with 240 million tons of metallurgical reserves. Consol had previously offered the mine up for sale.

"With the rapidly improving market for the met coal produced by Amonate, and with the industry's M&A (mergers and acquisitions) activity creating some distraction for potential buyers, we now believe that a reopening of the mine will yield the best value for our shareholders," it said.

"Because of the continued growth of Consol Energy's coal export business, and recent international developments, the company has decided to expand the capacity of its Baltimore Terminal by 2 million tons, to 16 million tons per year," it said. (Reporting by Steve James and Matt Daily; Editing by Derek Caney, Dave Zimmerman) (Reporting by Steve James)

U.S. Coal Demands of the Global Supercycle on 2011


American coal producers are scrambling to increase their production volumes. Although stockpiles at domestic utilities remain elevated above historic norms, forecasts for 2011 GDP have been revised downward, and cheap natural gas continues to offer an attractive substitute.

One might normally expect those sorts of factors to constrain bullish sentiment among domestic coal miners, but quite to the contrary, they convey excitement about their outlooks for earnings growth and sustained strength for coal prices. Arch Coal (NYSE: ACI ) this week discussed its vision for "a multi-year upswing in the coal market", while reporting ample net earnings of $59.4 million for the first quarter.

So where is the demand behind this strength in the coal market originating? We can see the phenomenon is not unique to any one region of the country, since Arch Coal revealed sequential sales-price increases for the first quarter across all three of the major coal basins in which the miner operates. Neither can we ascribe such strength to the encouraging upswing in U.S. industrial activity that bellwethers Nucor (NYSE: NUE ) and Steel Dynamics (Nasdaq: STLD ) revealed within their first-quarter results. As it happens, U.S. railroads to date have hauled only 2.9% more coal by volume in 2011 than they did for the anemic corresponding period of 2010.
The reason why we struggle to pinpoint the source of growing coal demand among the traditional domestic culprits is that the real source of demand growth is neither domestic nor traditional. Exports are now the key driver of strength in U.S. coal markets, which links the outlook for domestic miners to the very same "global supercycle" that international operator.
American coal producers are scrambling to increase their production volumes. Although stockpiles at domestic utilities remain elevated above historic norms, forecasts for 2011 GDP have been revised downward, and cheap natural gas continues to offer an attractive substitute.

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