Gold keeps shining

(Fortune Magazine) -- Gold got off to a fast start in 2006, hitting a high of $725 an ounce in May. Though it has lost about $80 since then, it remains well above the $500 an ounce it was fetching when we suggested in last year's Investor's Guide that it still had room to run. Many of the factors we cited in making our call are still influencing the market, including strong demand from China and India, a weak dollar, and global worries about terrorism and political tensions. We'd add to that list the threat of renewed inflation in a world so awash in liquidity that private-equity mega-deals are now weekly events. So if you liked gold in 2006, chances are you'll want to stick with it in 2007.
Another trend fueling the gold rush has been the popularity of exchange-traded funds (ETFs), which make it much easier for retail investors to gild their portfolios with direct exposure to the metal. Two popular choices include streetTracks Gold Shares (GLD), which holds about 14.2 million ounces, or $9.2 billion, of gold bullion in trust. iShares COMEX Gold Trust (IAU) has 1.4 million ounces of gold in trust, or $880 million. Both are up about 30% so far this year. For investors who prefer traditional mutual funds, Franklin and Fidelity offer top-performing choices that give investors exposure to a basket of gold-mining stocks.

Australia's gold production falls to lowest level in 13 years - report

SYDNEY (XFN-ASIA) - Australian gold output has slipped to its lowest levels in 13 years, but the industry's unhedged producers are enjoying strong revenue gains, thanks to continued price increases, the Age newspaper reported, citing an industry survey.
It said the survey by Melbourne-based consultant Surbiton Associates, showed Australia's gold output fell 5 pct to 249 metric tons in 2006 from 263 tons in 2005 -- the lowest annual total since 1993.
The Age said the production fall moved Australia's global ranking as a gold producer from second position behind the dominant but also falling South Africa to third position, with the US industry regaining the second slot.
Surbiton director Sandra Close said that despite the production fall, the value of Australian gold production increased substantially.
'The average spot gold price of around 800 aud an ounce for 2006 was more than 200 aud an ounce higher than for 2005,' the Age quoted Close as saying.

A fresh thrust in the gold market from Dubai and Istanbul

LONDON --The burgeoning gold industry in the Middle East took another step forward in early March with the admission of the Istanbul Gold Refinery into the Dubai Metals and Commodities’ Centre (DMCC)’s good delivery list. The listing, which is broadly fungible with London Good Delivery in terms of the specifications that apply to the brands, now encompasses 24 international firms with respect to gold and silver refining, allowing them to trade gold or silver for delivery against futures contracts on the Dubai Gold and Commodities Exchange. The Dubai Good Delivery standard (DGD) was introduced in 2005 with the intent to promote international standards and increase confidence in the local and regional trade, as well as providing the delivery standard for the Exchange. The Istanbul Gold Refinery, which produces kilobars, is the first Turkish refinery to be awarded DMCC good delivery listing. In order to qualify for admission to the Dubai Good Delivery List, a refinery must meet the following criteria: Have produced a minimum of ten tonnes of refined gold during the previous year in small bar form (i.e. kilo bars or smaller); Have a minimum total net worth of US$10 million. There are two categories of membership. Category one, in addition to the first two criteria, must also currently hold London Good Delivery status for its 400-ounce large gold bar production Or, for category two (refineries not currently on the LBMA Good Delivery List and whose brands do not hold London Good Delivery status): Agree to an initial and thereafter regular independent third party testing of its gold bar production and submit the necessary documentation with respect to record keeping requirements and provide third part references as required by DMCC.