The summer doldrums have arrived bringing a truckload more negativity than we expected. Our decision not to sell in ‘May and Go Away’ does not look too good as of today but will sit through this period, as we believe that the move upwards could come quicker than most people expect and we don’t want to be caught on the sidelines.

Below is a short review of our investments to date.

1. Agnico Eagle (AEM) we paid $30.88 and it now stands at $36.75, a rise of 19.00%, which is a little disappointing after Agnico reached $41.00 but the summer season is upon us and stocks have generally drifted lower. We had imagined that at this sort of level Agnico would be a tempting take over target, but that aside we will continue to hold through ‘tuff’ period.

2. Bema Corp (BGO) we paid $4.56 and it has it has been taken over by Kinross for a healthy profit.

3. Kinross (KGC) we acquired at $10.08 and this stock now stands at $13.17, a rise of 30.6%. Having absorbed Bema this stocks progress has been bumpy. Again we must be patient and hold on through the summer.

4. Silverado (SLGLF) we bought at $0.08 and it now stands at $0.10 a gain of 25.00%. The Nolan Heights project continues to make good progress and we will stay with it in the belief that Gerry Anselmo and his crew will hit the Mother Lode. The green fuel side of the business is continuing to make progress with the construction of their first project, the $29 million coal to oil operating plant.

5. US Gold Corp (UXG) we bought at $8.40 and sold at $6.67 a loss of 20%. We are glad to have sold into the recent rally as the stock is now trading at $5.36. We will watch from the sidelines and see if Rob McEwen, the company Chairman can work his magic and take this stock further.

6. Yamana Gold Inc (AUY: NYSE) we paid $9.37 on 27 September 2006, it is now trading at $12.99 for a rise of 38.6%. Yamana had been making good progress and looked set to challenge its old high of $15.44 but then dropped as low as $12.35 before starting to recover.

7. Rio Narcea Gold Mines was added as a ‘Watch’ as a member of the team had selected it for his entry into a Stock Picking contest. Since then Ludin Mining Corporation has entered a ‘cash’ offer to take over Rio so that looks to be end of Rio as a single entity. The stock is currently lying in 2nd place and trading at $5.46 having entered the competition at $3.03.

8. Canarc Resource Corporation (CCM: TSX) we have added Canarc to our list and we are still mere observers. The stock has recently dropped from $0.72 to around $0.58, so this is definitely not one for the faint hearted!

9. Staccato Gold Resource Limited (CAT: TSX) this is a speculative buy and we made a purchase on 5th April at $0.62, the stock has dropped to $0.39 for a paper loss of 37%. The recent results from the South Eureka, Nevada project have not impressed the market.

We welcome any comment that you have and also invite you to tell us about your favourite gold stock and why you think it will do well. Your input will be of benefit to all of our readers so please feel free to give it a shot.