Tip by Tom Winnifrith on investment website T1PS.com on 07.10.04 :
"In the mining world, Caledon Resources raced ahead by 0.75p to 5.125p after website t1ps.com upgraded its stance from "hold" to "strong speculative buy." Last time this website tipped Caledon the shares more than trebled in three months before members were advised to sell half their holdings so guaranteeing a three figure return. The website argues that the risk/reward trade-off now looks more attractive than ever and suggests that corporate activity within the subsector (Chinese gold explorers) is about to explode"
http://www.caledonresources.com//
Trades over 300,000 Shares are delayed in reporting by 1 Hour.


On fundamentals ALL exploration companies without resources can be said to be overpriced. The only assets they have which can have a hard-and-fast value assigned to them are their bank balances.
People invest in explorers because they believe that the projects/management/geo team have the potential to develop valuable mineral deposits. The share price usually reflects the market's opinion about this potential.
In the fulness of time, if Caledon discover deposits which can be proved up to contain a couple of million ounces, those that bought at 5p or even 15p will be seen to have been correct (or fortunate!) in their assessment of risk/reward.
Some details below from the recent WHI broker note on Palladex, I am not suggesting for a moment that anyone go buy Palladex this is just for comparative data where you will see the value of a company compared to it's in-situ gold.
Point is where will CDN be once they show one project is as big as they and we hope by giving an estimate by end of 2004 ?

Caledon Overview:
Caledon Resources PLC is a public company listed on the Alternative Investment Market of The London Stock Exchange (trading symbol: "CDN"). Its mission is to become the leading gold exploration company in “The Golden Triangle” of Southern China

Caledon has assembled a multi-talented, technically oriented management team - one of few with in-depth knowledge and experience in China. All members have over 15 years experience in evaluating hundreds of East Asian sediment hosted disseminated gold deposits
Advanced stage gold exploration focussed on under-explored producing gold mines in China - Exploration active on four advanced stage gold projects: Hengxian, Gaolong, Badu and Mojiang
Caledon’s primary focus: Sediment Hosted, Disseminated Gold Deposits (“Carlin-type”). Quoted from the United States Geological Survey (USGS Open-File Report 02–131): “It is likely that many of the Carlin-type Au ore districts in China, when fully developed, could have resource potential comparable to the multi-1,000-tonne Au resource in northernNevada.”

Corporate Summary
Caledon Resources PLC is a public company listed on the Alternative Investment Market of The London Stock Exchange (trading symbol: "CDN") and has been domiciled in the UK since February 2003. The Company’s primary focus is to enhance shareholder value through the opportunistic evaluation of fertile under-explored gold districts, resulting in the exploration, discovery and development of world-class gold ore bodies. The Company is currently focused on project evaluations and exploration for sediment hosted disseminated (“Carlin-type”) gold deposits situated in Southern China, although other styles of mineralisation are being assessed if they have multi-million ounce potential.

Caledon’s principal area of focus is Guangxi Province where it has negotiated joint ventures with The Geological Survey of Guangxi and is in the process of forming additional joint ventures with the Chinese National Gold Corporation.

Caledon has signed a joint venture agreement covering the Longtoushan Gold mine and 350 sq km’s of surrounding tenements in Guangxi Province as well as joint venture agreement covering various exploration areas under the control of The Geological Survey of Guangxi.

In addition, advanced exploration property acquisitions and joint ventures are being evaluated in Guangxi with The Chinese National Guangxi Gold Corporation and other joint ventures are under negotiation in Yunnan and Guizhou Provinces.

In order to exploit this opportunity, Caledon has assembled a team of geologists whose main focus over the past 15 years has been to identify and evaluate gold occurrences and deposits throughout South East Asia on behalf of several major mining companies.

Of the 300 plus gold occurrences and districts identified and screened over the years by Caledon’s team, five distinct gold districts have emerged as top-priority ranked targets, based on their geological similarities with the multi-million ounce gold districts found in the State of Nevada, U.S.A (“Carlin-districts”). The USGS has identified the so called “Golden Triangle”, consisting of the provinces in which the Company is focused (Guangxi, Guizhou and Yunna), as having similar style mineralisation to the Carlin deposits in Nevada.

To date, five highly ranked areas in Guangxi Province have been identified by Caledon’s team. Applications for mineral titles have been submitted on all five districts and joint ventures are being negotiated where applicable.

Recognising the need for foreign mining investment, in parallel with China’s entry into the World Trade Organisation, the country has adopted a number of sweeping changes that have recently been enacted in their mining legislation. In the country’s bid to attract foreign investment and mend the fractured structure of their mining industry, the Chinese government, through powers delegated to the provinces, allows foreign ownership of up to 90% in mineral titles and producing gold assets. In addition, various tax incentives exist to help foreign gold explorers and producers.

Perhaps the most relevant change recently enacted in China, involves the evolution towards complete transparency within the Chinese gold markets. Companies can now buy and sell gold on the Shanghai Gold Exchange, which quotes gold prices in line with the London Gold Fix rates. Additional mechanisms are currently in place to allow for repatriation of profits from Chinese-based, foreign-operated gold mining operations. Further enhancements are expected within the year.

The group now has all of the key primary ingredients in place in order to position the group for maximum returns.

Those key ingredients are:

highly experienced, South East Asia based technical management with proven exploration abilities,
acquisition / title lock on a number of properties hosting potential multi-million ounce disseminated gold deposits, and
an appropriate amount of financing in place allowing the group to conduct a meaningful first-pass exploration program within these districts.
Given the sweeping changes that China’s mining law has recently undergone, Caledon is well positioned to maximise gold exploration opportunities that exist in the country.

It is likely that many of the Carlin-type Au ore districts in China, when fully developed, could have resource potential comparable to the multi-1,000-tonne Au resource in northern Nevada.”

These are not my words, but the words of the US Geographical Survey or the (USGS). To read there full report on Carlin Deposits you need to go to the link -
http://geopubs.wr.usgs.gov/open-file/of02-131/OF02-131.pdf

The Projects
Hengxian Gold Mine - The Hengxian project is a classic example of a sediment
hosted disseminated gold system ("Carlin-type"), with considerable exploration
potential. At Hengxian, gold is being mined in a north-east trending zone
measuring up to 3 kilometres long and up to 800 metres wide. Gold occurs in
steeply dipping, high grade feeder structures (> 4.5 g/t gold avg.), feeding
flat-lying moderate grade (1-4 g/t avg.) stratiform zones. To date, at least
four sub parallel feeder structures have been defined. The gold mineralisation
occurs on a major regional structure that can be traced for more than ten
kilometres away from the existing workings. Access and infrastructure in the
area is excellent - Hengxian is a two hours drive from Caledon's office base
situated in the Guangxi Provincial capital, Nanning.

Previous exploration has been almost entirely focused on shallow oxide zones.
Gold resources at Hengxian are reported to be 310,000 ounces (Inferred category)
grading approximately 4.6 g/t gold - with those resources having been defined by
only a limited amount of shallow focused drilling, concentrated on the surface
oxide zones (0-60 m depth). Exploration to date has only been focused on a small
- 2.5 kilometre long - portion of the entire 10 kilometre long structure,
initiated on obvious outcropping oxidised sulphides.

Summary results from drilling conducted on Hengxian Hill by Caledon's minority
partners, Taifu Mining, defining the near surface limits of the deposit, include
the following:

Section Hole Number Depth (m) Intercept (m) Grade g/t Au
44 ZK 14 13 50.6 2.02
435 ZK 4351 25 10.1 8.0
ZK 4351 49 14.5 5.03
43 ZK 432 45 41.4 6.44
ZK 5 49 31.0 8.8
ZK 19 102 27.0 4.0
425 ZK 251 50 42.5 3.91
ZK 4255 103 29.1 6.93
ZK 4252 72 12.8 6.16
ZK 4252 90 18.6 4.02
415 ZK 152 42 20.7 3.0
ZK153 65 13.9 4.68
41 ZK 16 10 11.1 3.79
ZK 411 33 24.6 4.0

Intervals between known areas of higher grade mineralisation carry significant
disseminated gold mineralisation, typical of such gold deposits. For example,
drill hole ZK19 reported a 27 metre wide interval grading 4.0 g/t gold,
occurring within a much wider down-hole interval reporting a width of 133 metres
grading 3.24 g/t Au.

Gaolong Gold Mine - Gold has been actively mined at Gaolong by Caledon's
minority partners, Guangxi Tianlin Gaolong Gold Mine Ltd Co for over 10 years.
At Gaolong, surface and limited underground mining can be traced in a
semi-continuous manner over a strike length in excess of three kilometres, with
mining widths averaging 10 to 30 m, to a maximum of 60 m wide.

The Gaolong mine itself is ranked in the top two gold producers in the province
and has been cited by the United States Geological Survey (USGS) as having
distinct similarities to the 15+ million ounce Betze ore body situated in
Northern Nevada, USA (USGS OP 02-131).
Results from past drilling performed at shallow depths immediately adjacent to
zones being mined by the Chinese at Gaolong, are a testament to the bulk minable
nature of the Gaolong ore bodies themselves (i.e. Section #30 - 4.1 g/t over
10.8 m, 3.2 g/t over 33.4 m, 4.7 g/t / 31.3 m). The immediate extensions of
these open-ended zones will form the focus of gold exploration to be undertaken
in 2004.
In the 4th Quarter, 2003, Caledon reported results from a preliminary channel
sampling program at Gaolong, as part of the effort to identify drill targets on
the project. The following is a summary of results from this initiative:

Channel # Sampled Width Gold Grade
Channel 1 44 meters 2.5 g/t
Channel 2 10 meters 3.9 g/t
Channel 3 14 meters 2.4 g/t
Channel 4 28 meters 2.7 g/t
Channel 5 22 meters 2.3 g/t
Channel 6 12 meters 3.3 g/t

Badu Gold Mine - Small scale mining is in progress at the Badu Mine, situated 12
kilometres North East of the Gaolong mine. The Badu mining and exploration
tenements are included within the Gaolong master agreement. The GTGGML's
open-pit mining operations at Badu can be traced in a semi-continuous manner for
over four kilometres along strike, with mining widths averaging 20 to 40 m. Gold
is recovered in the heap leaching of oxide ores, with average head grades of 1
to 2 g/t gold. Caledon is aware of only 1-2 shallow drill holes having being
completed over the entire four kilometre strike length.

Mojiang Gold Mine - A letter of intent has been signed regarding Mojiang Gold
mine. Active mining has been underway at Mojiang since the late 1970s by the
Mojiang Mining Limited Company. The mining at Mojiang was based on reserves of
32 tonnes of gold (>900,000 oz) at a grade of 4-6 g/t Au. At present, the
majority of the gold mining operation is focused on gold production from open
pits and underground mining, with plant head grades consistently reporting above
4 g/t gold. To date, approximately 70% of the initial reserves have been mined.
At Mojiang, individual veins, averaging up to 12 metres wide, have been shown to
host grades in excess of 15 g/t. Individual veins sometimes exhibit bonanza
grades (in-excess of 30 g/t gold), typical of such systems. The veins are hosted
in sediments and acid volcanics, near the contact between thrusted Cambrian
sediments and metamorphosed ultra-mafic volcanics belonging to a regional scale
ophiolite complex, within the Red River Suture Zone.
Examples of diamond drill intercepts at Mojiang highlighted from the earlier
Chinese work include:

Section # Drill Hole Mineralised Intercept
Section 50 DDHZ50-6 41.62m @ 3.34 g/t
Section 51 DDHZ51-16 28.22m @ 4.89g/t
Section 52 DDHZ52-10 53.98m @ 2.72g/t
Section 40 DDHZ93-1 7.93m @ 13.67g/t
Section 40 DDHZ93-1A 8.39m @ 9.00g/t
Section 40 DDHZ94-3 12.35m @ 15.05g/t

Contact Information
London Office
18 Upper Brook Street
London W1K 7PU
United Kingdom
Tel: + 44 20 7318 5780
Fax: + 44 20 7318 5781
Stephen Dattels - Chairman
sdattels@caledonresources.com

Donal Douglas - Deputy Chairman
ddouglas@caledonresources.com
George Salamis - Managing Director
gsalamis@caledonresources.com
Manish Kotecha - Company Secretary
mkotecha@caledonresources.com

Thanks for this overview again sue helen. lets wait and see what happens...........

As things stand tonight we do not want the price to rise to more than 6.25-6.5 pence on Tuesday or Wednesday..this may sound bizzare...but the price is a buying opportunity on Tuesday and Wednesday...after those days there will more room for the price to rise. It we rise over 6.5 pence on Tuesday we will come straight back down ...the way I am describing we should see a higher price than 6.25-6.5 pence by Friday next week...

Though if some very good news on Tuesday or Wednesday comes then all TA out of the window...

Some very favourable comments here:

Gold mining merger bids seen as prelude to more
Reuters, 05.28.04, 1:49 PM ET

By Steve James

NEW YORK, (Reuters) - The North American gold mining industry was abuzz Friday over a pair of takeover bids that some analysts believe are a prelude to further consolidation.

"We certainly expect to see more, especially the smaller miners, who could become more attractive," said Chip Hanlon, chief operating officer and U.S. strategist for Euro Pacific Capital, a $300 million fund with approximately 10 percent exposure to precious metals.

"Everybody is vulnerable, except the big companies," said Victor Flores, a gold analyst with HSBC Securities. "Everybody has got to be a potential target, or they can throw around a lot of paper and become a predator."

They were reacting to a flurry of activity late Thursday, when two Canadian mining firms due to merge next month received separate unsolicited takeover offers from two U.S.-based miners looking to break up the planned marriage.

Idaho-based Coeur d'Alene Mines Corp. offered $1.7 billion in stock and cash to buy mid-sized gold producer Wheaton River Minerals Ltd. , which had agreed in March to an offer from rival Iamgold Corp. to create one of the world's 10 biggest gold miners.

And Denver-based Golden Star Resources Ltd. launched an all-share bid worth about $884 million for Toronto-based Iamgold.

"Merger activity usually accompanies a bull market and we believe we are entering a long-term bull market for miners," said Hanlon. "As their shares move higher, it becomes like currency with which to make acquisitions."

Noting that one of Thursday's bids was an all-stock deal and the other was for stock and cash, he said a stronger stock market made it easier for companies to make acquisitions.

"Using stock is probably what we will see. As stocks come to life, it adds to the increase in merger activity.

"If you want to grow you can either spend a whole bunch of capital expanding and exploring, or you can find someone who is already sitting on it (gold deposits)," said Hanlon.

He said that in a merger-focused environment, he saw giants like Newmont Mining Corp. and Barrick Gold Corp. looking to make acquisitions.

Frank Holmes, chairman and chief executive of U.S. Global Investors, a fund which also has a number of mining company stocks, including Wheaton River and Iamgold shares, agreed.

"Sure, there's definitely consolidation. The smarter companies are saying 'we have got to acquire assets.' It's a lot cheaper to buy someone else than to lay out capital for (mineral) discovery," he said.

"(But) it's intellectual capital, besides assets in the ground that you have to bet on. Combining intellectual capital is the way to fast-track a company's growth," said Holmes.

Flores was less enthusiastic. "This industry has already had a fair amount of consolidation and created some pretty big companies like Newmont and Barrick. Now there's a scramble among mid-tier players to gain critical mass.

"I don't see it as the same thing, though. The others were founded on spectacular assets. What you are seeing now is small assets being cobbled together to make something larger that may not stand the test of time."

Flores said the market supports such mergers because it believes "bigger is better.

"They think they can enhance value by taking two small companies and putting them together. I could take 25 companies and call it the 'new Newmont,' but who would still be around in five years? That's the real test."

Despite several mergers since the mid-1990s, the gold industry remains very fragmented for a sector with a total market value of about $100 billion for hundreds of companies. In fact, two of North America's biggest producers said earlier this month they expected more industry consolidation.

Jay Taylor, chief executive of Placer Dome Inc. , North America's No. 3 gold producer, said consolidation would make the industry healthier. His company is actively looking at more acquisitions, he said, to follow the $700 million takeover of Australia's AurionGold in 2002.

And Wayne Murdy, chief executive of Newmont, also told reporters that consolidation would benefit shareholders.

Copyright 2004, Reuters News Service

http://www.forbes.com/newswire/2004/05/28/rtr1388705.html

More positive developments today confirmed by Investtech:

Negative Candidate (Short term) - May 28, 2004
Shows a weak development within a falling trend channel. A further negative development is indicated, and there is resistance against the ceiling of the trend channel. The stock has support at p 4.80 and resistance at p 7.50. Volume tops correspond with price bottoms and volume bottoms correspond with price tops. This confirms the trend. The RSI curve shows a rising trend, which is an early signal for a possible trend break up. The stock is overall assessed as technically negative for the short term.

Volume tops correspond with price bottoms and volume bottoms correspond with price tops. This confirms the trend. The RSI curve shows a rising trend, which is an early signal for a possible trend break up.

--That's the confirmation I wanted which I mentioned yesterday. RSI curve shows a rising trend. We are moving into an upward trend...Excellent news.

Early signal for a possible trend break up - i.e moving from a downward trend into an upward trend. These analysis were updated after today's close. This has confimed the upper bollinger band moving up today after a long, long time...

This is the strongest bullish signal we have had this week...

Sue

Forgive my ignorance but is the Investtech note saying this wil go down in the short term ??? Are you saying this is a buying opprtunity?

Thanks

Hi Zombie Boy,

The upper part of the Investtech analysis should be ignored...it has stated the same thing for weeks...due to ourselves being in a downward trend...we have to look at the bottom part of the Investtech analysis which is new after friday's close....That is a very significant positive statement they have made which have confimed my predictions throughout the week...at anything under 6 pence or at 6 pence should be snapped at...The upper part of the Investtech analysis will be really positive come the end of next week as we should have definitely moved into an upward trend.

More gold consolidation forecast
--------------------------------------------------------------------------------

The North American gold mining industry was abuzz on Friday over a pair of takeover bids that some analysts believe are a prelude to further consolidation.

"We certainly expect to see more, especially the smaller miners, who could become more attractive," said Chip Hanlon, chief operating officer and US strategist for Euro Pacific Capital, a $300 million fund with approximately 10 percent exposure to precious metals.

"Everybody is vulnerable, except the big companies," said Victor Flores, a gold analyst with HSBC Securities. "Everybody has got to be a potential target, or they can throw around a lot of paper and become a predator." They were reacting to a flurry of activity late on Thursday, when two Canadian mining firms due to merge next month received separate unsolicited takeover offers from two U.S.-based miners looking to break up the planned marriage.

Idaho-based Coeur d'Alene Mines Corp. offered $1.7 billion in stock and cash to buy mid-sized gold producer Wheaton River Minerals Ltd., which had agreed in March to an offer from rival Iamgold Corp. to create one of the world's 10 biggest gold miners.

And Denver-based Golden Star Resources Ltd. launched an all-share bid worth about $884 million for Toronto-based Iamgold.

The potential for mergers was heightened as gold mine company profits have risen with the price of the precious metal. Since August 1999, when it was selling for around $250 per troy ounce, the spot price of gold has steadily climbed and reached a high of $430 in January and April of this year. It closed in New York on Friday at $393.80.

Coeur d'Alene's stock rose 7.3 percent to $4.69 on the New York Stock Exchange on Friday and Wheaton's slipped 1 cent to $2.91 on the American Stock Exchange, while Golden Star's fell 31 cents or 5.87 percent to $4.97.

"Merger activity usually accompanies a bull market and we believe we are entering a long-term bull market for miners," said Hanlon. "As their shares move higher, it becomes like currency with which to make acquisitions."

Noting that one of Thursday's bids was an all-stock deal and the other was for stock and cash, he said a stronger stock market made it easier for companies to make acquisitions.

"Using stock is probably what we will see. As stocks come to life, it adds to the increase in merger activity.

"If you want to grow you can either spend a whole bunch of capital expanding and exploring, or you can find someone who is already sitting on it (gold deposits)," said Hanlon.

He said that in a merger-focused environment, he saw giants like Newmont Mining Corp. and Barrick Gold Corp. looking to make acquisitions.

Frank Holmes, chairman and chief executive of US Global Investors, a fund which also has a number of mining company stocks, including Wheaton River and Iamgold shares, agreed.

"Sure, there's definitely consolidation. The smarter companies are saying 'We have got to acquire assets.' It's a lot cheaper to buy someone else than to lay out capital for (mineral) discovery," he said.

"(But) it's intellectual capital, besides assets in the ground that you have to bet on. Combining intellectual capital is the way to fast-track a company's growth," said Holmes.

Flores was less enthusiastic. "This industry has already had a fair amount of consolidation and created some pretty big companies like Newmont and Barrick. Now there's a scramble among mid-tier players to gain critical mass.

"I don't see it as the same thing, though. The others were founded on spectacular assets. What you are seeing now is small assets being cobbled together to make something larger that may not stand the test of time." Flores said the market supports such mergers because it believes "bigger is better.

"They think they can enhance value by taking two small companies and putting them together. I could take 25 companies and call it the 'new Newmont,' but who would still be around in five years? That's the real test." Despite several mergers since the mid-1990s, the gold industry remains very fragmented for a sector with a total market value of about $100 billion for hundreds of companies. In fact, two of North America's biggest producers said earlier this month they expected more industry consolidation.

Jay Taylor, chief executive of Placer Dome Inc., North America's No. 3 gold producer, said consolidation would make the industry healthier. His company is actively looking at more acquisitions, he said, to follow the $700 million takeover of Australia's AurionGold in 2002.

And Wayne Murdy, chief executive of Newmont, also told reporters that consolidation would benefit shareholders.

http://www.miningweekly.co.za/min/news/today/?show=51419

U.S.

Crude Oil, Gold Prices Rise After Terror Attack in Saudi Arabia
May 31 (Bloomberg) -- Crude oil and gold prices rose after the third terrorist attack this month against foreign workers in Saudi Arabia left 22 dead over the weekend, raising concern higher fuel costs may slow global economic growth.

Oil for October delivery rose 520 yen a kiloliter (76 cents a barrel), to 22,890 yen a kiloliter ($33.29 a barrel) on the Tokyo Commodity Exchange, Asia's biggest energy-futures market. Gold, seen as a haven from declines in equity markets, rose as much as 0.5 percent to $395.82 an ounce for immediate delivery, as Asian stocks fell.

Saudi Arabian security forces yesterday stormed a housing compound in the city of Khobar used by international workers and rescued 25 people held hostage by gunmen. Crude prices have risen 40 percent in the past year on the New York Mercantile Exchange, the world's biggest energy market, partly because of attacks in Iraq and Saudi Arabia in the past two months.

``It's all about Saudi Arabia and what they will do. If they have problems inside their own borders, it shows a bleak picture,'' said Michael Preiss, chief investment strategist at CFC Securities Ltd. in Hong Kong, a unit of Switzerland-based CFC Group. ``It's a wake-up call for Saudi Arabia to really be decisive and communicate the message that the situation is under control.''

New York and London, the world's two biggest oil futures markets, are closed Monday for public holidays.

Gold, Stocks

Gold for immediate delivery rose as much as $2.17 an ounce to $395.82 an ounce. The precious metal traded at $395.25 at 7 p.m. Tokyo time. The Morgan Stanley Capital International Asia Pacific Index, which tracks more than 900 stocks, is headed for its second monthly slide amid concern rising crude prices will slow economic growth.

Currencies in Japan, Singapore, Taiwan, Thailand, Indonesia, South Korea and the Philippines gained against the dollar, underscoring concern about terrorist attacks against U.S. interests.

Saudi Arabia, which has capacity to produce about 10 million barrels a day, has an OPEC limit of 7.64 million barrels a day and last month pumped 8.35 million barrels a day, according to Bloomberg's estimates.

``Fundamentally, what we have is an 80 million barrel a day oil market with 2 million barrels spare capacity in one country,'' said Kurt Barrow, a Singapore-based energy consultant at Purvin & Gertz Inc.

New York

Crude oil futures in New York rose on Friday for the first day in four amid concern about possible terror attacks in the Middle East and consuming countries over the weekend.

A statement purportedly issued by the al-Qaeda terrorist network said it carried out the attack in Saudi Arabia at the weekend, Agence France-Presse said.

Crude oil futures in New York rose 2.2 percent on Monday, May 3, the first trading session after gunmen killed five employees of Swiss engineering company ABB Ltd. at an oil refinery in the town of Yanbu.

``It's obvious now that al-Qaeda is now targeting oil installations,'' said Phil Flynn, senior energy trader for Alaron Trading Corp. in Chicago. ``We have to be worried about attacks upstream, downstream, overseas and at home.''

Terrorism attacks have added to concern about supply as U.S. gasoline supplies lag year-earlier levels before the peak summer demand months.

OPEC

The Organization of Petroleum Exporting Countries, source of a third of the world's oil, this week will probably approve a plan to boost output and lower near-record prices, OPEC officials and energy analysts said.

Saudi Arabia on May 21 announced an increase in output and proposed that OPEC boost the group's production target by at least 2 million barrels a day, or 8.5 percent. OPEC, which meets Thursday in Beirut, may decide to suspend quotas altogether, two officials of the group, who asked not to be identified, said Friday.

``Contracts are also rising on speculation it may be difficult for OPEC to increase output quotas at its June 3 meeting as Venezuela and other countries are against raising production,'' said Tatsuo Kageyama, an analyst at Kanetsu Asset Management in Tokyo.

The International Petroleum Exchange in London is closed for the Spring Bank Holiday. The New York Mercantile Exchange is closed for the Memorial Day holiday.

To contact the reporters on this story:
Hector Forster in Tokyo at hforster@bloomberg.net and Sri Jegarajah in Singapore at (65) sjegarajah@bloomberg.net.

To contact the translator on this story:
Hiromi Horie in Tokyo at hhorie@bloomberg.net.

Last Updated: May 31, 2004 06:34 EDT

http://quote.bloomberg.com/apps/news?pid=10001058&sid=aW9N0ECEB2bY&refer=movers_by_index

INTERVIEW

SANJEEV AGARWAL, MANAGING DIRECTOR, INDIA SUBCONTINENT, WORLD GOLD COUNCIL

'Gold should constitute five to 15 per cent of an ideal portfolio'

Will the gleam remain with the yellow metal? Shefali Anand asks Sanjeev Agarwal


How good is gold as an investment at a time when the equity market is the shining star?
Investors should not get carried away by short term trends and movements and instead decide their investment portfolios based on their risk appetite. Gold is a means of diversification. It has zero or inverse relationship with the equity market. Secondly, it is the only commodity whose prices are not linked to a single country or ideology - it's pricing is transparent and global. Finally, it is actively traded all over the world for 24 hours a day. Therefore, it has instant liquidity. Various studies conducted by leading banks across the world show that gold should constitute five to 15 per cent of an ideal portfolio.

Gold prices have risen over the last one year. Are they likely to move up further?
Gold will continue to remain strong. The US economy is expected to remain weak and its growth limited, due to its huge current account deficit and inflationary pressures. Those who don’t want to hold too much of the US dollar, will stay invested in gold, keeping its prices firm.



In what form should gold be bought?
If you want to buy the yellow metal as part of your portfolio or as a means of savings, best buy in bars and coins. However, here you end up spending 3-4 per cent more than the international price of gold, on duties and local taxes. The most efficient way of holding gold is with your bank, in a gold savings account. This will be just like a savings account but permission is still awaited to make such accounts functional in India.

How should it be stored?
As of now, most Indians store gold in their lockers. However, we are working with some banks to launch a ‘Custody Account’. Here, the buyer will be able to keep his gold in the safe custody of the bank. This too awaits RBI permission.

What can a customer do when her 22 carat gold jewellery proves to be less than pure?
The best way to avoid this problem is to insist on hallmarked jewellery at the time of purchase. The Bureau of Indian Standards has set norms which have to be followed to ensure the caratage of gold. Hallmarking adds a small cost to the jewellery - for example, Rs 25 per 10 grams in Mumbai. But it's worth giving the incremental charge than to be in fear of the gold's purity. Often customers haggle over these charges, which pressurises jewellers to cut cost by compromising on hallmarking.


http://www.indianexpress.com/full_story.php?content_id=47922

Seems Gold and Gold Mines will be the favourites this week as Investors chase Safe Havens:

Reuters
UPDATE - Attacks, U.S. dlr draw Asia investors to gold
Sunday May 30, 11:19 pm ET


SYDNEY, May 31 (Reuters) - Safe-haven gold advanced in Asia on Monday on rising global security concerns as Saudi forces combed the kingdom for suspected al Qaeda militants who killed 22 civilians at an oil complex and took dozens of foreign hostages.

Bullion was also getting a lift from a sagging U.S. dollar in Asia, which makes gold a cheaper buy for regional investors.

The dollar fell below 110 yen as traders shied away from the U.S. currency, dipping to 109.72 yen (JPY=) from 110.37 earlier. The Taiwan dollar (TWD=TP) was stronger.

Spot gold (XAU=) gained more than $1 to $395.00/$395.60 an ounce at 0233 GMT versus $393.80/4.55 in New York on Friday. Gold last fixed in London at $393.25.

Separately, gunmen attacked three civilian vehicles carrying foreigners in northwest Baghdad on Sunday, killing two Westerners and seizing three others, according to witnesses and police.

Dealers said investors sought bullion because the attacks heightened concern that oil prices will rise as a result of the violence, sparking inflation fears and a sell-off of the U.S. dollar.

"In times like this gold gains more of a following," one said.

U.S. financial markets will have a day off Monday in observance of Memorial Day and London traders will also have a public holiday. NYMEX crude oil futures (CLc1) were expected to head higher when they resume trading on Tuesday.

In Tokyo gold futures, benchmark April gold (JAUJ5) was nine yen down at 1,396 yen per gram.

* Spot silver (XAG=) up three cents from early trade to $6.15/$6.18 an ounce.

* Spot platinum (XPT=) at $842.00/$847.00 an ounce.

* Spot palladium (XPD=) at $251.00/$256.00 an ounce.


http://biz.yahoo.com/rm/040530/markets_asia_gold_3.html

hi Sue helen

"WIth the uptrend developing better than I thought I have upgraded my target of 8-9 pence by 19 June 2004 to 10 pence."

why is june 19th an important date

It's just my own target thesaurus, one month finishes on that date since this thread was started...

thanks for that sue helen...

Sue,
What % of your portfolio should be gold mines now,i know it depends on what income you need from it div's ect:

Hi aldwickk, at the moment I have 50% of my portfolio in gold mines ie. Caledon Resources (CDN).

SueHelen
Ouch it has dropped today - what are your thoughts? I just hope this is a temporary blip.

Morning Fonty, just a temporary blip today with the markets the way they are. Nevertheless, a very good buying opportunity.

SueHelen - I really like Caledon and look forward to the blip bouncing - not a very exciting day in the markets anyway lots of my portfolio are flashing red! I have faith in Cal. All the best for you

LONDON, June 1 (Reuters) - Gold moved up in Europe on Tuesday
morning, with dealers expecting the market to revisit levels last seen in April at $400 an ounce
on a softer dollar and security jitters in the Middle East.

Bullion's safe-haven status for investors was highlighed by weekend attacks in Saudi Arabia
and continuing violence in Baghdad.

The metal traded narrowly in Asia earlier on Tuesday, with investors looking to currency
markets and Middle East developments for direction ahead of the resumption of trade in Britain
and the United States after a holiday weekend.

"In terms of actual bullion transactions, there's been nothing major yet -- we're still shifting
around with the currencies," one dealer said.

"But with the euro looking like it might make it back up towards $1.24 again, we could see
some buying appearing during the course of the day," he added.

The euro headed up towards last week's seven-week high against the dollar, which beat a general
retreat on nervousness over what U.S. data later in the day would signal for U.S. rates.

Attention turned to U.S. manufacturing activity figures at 1400 GMT, with investors waiting
to see whether this would indicate enough economic strength to warrant a dollar-boosting June
rate rise, which could dull the appeal of gold.

Spot gold was quoted at $396.00/396.75 per troy ounce by 0948 GMT, compared with $393.80/4.55
late on Friday in New York before closure for the U.S. Memorial Day holiday on Monday. The euro
was at $1.2252/55 against the dollar.

Dealers said the market was poised for a strike at $400, last seen on April 20.

"Currently, it seems as if the gold price is caught below its 100-day-moving average at $396.40.
However, given the positive momentum it has developed, a test of this resistance or even 400
might lie ahead," Dresdner Kleinwort Wasserstein said in a daily report.

In other metals, silver was also ripe for further gains, dealers said, after performing strongly
with gold last week.

"The 'industrial precious metal's' technical outlook is positive with support provided by
the 200 day moving average at $5.98 and a solid foundation in place at $5.80," Standard Bank
London said in a daily report.

"Key resistance remains in place at $6.25, with a break above this level likely to target
the gap on the charts evident between $6.60 and $6.80," it added.

Spot silver was at $6.14/$6.17 compared with $6.09/6.12 in New York late on Friday.

Spot platinum was at $842.00/$847.00 from $828.00/833.00, while spot palladium
stood at $248.00/$253.00 from $244.50/250.50.

http://www.forbes.com/reuters/newswire/2004/06/01/rtr1390361.html