Dumping golden investment as price peaks

It pays no interest or dividends and it costs money to store and insure it. Yet the price has been rising strongly since the middle of February and this month went above $A3000 an ounce, an all-time high and a gain of more than 13 per cent in a month.

Gold is usually quoted in US dollars, but of course it is the Aussie price that matters for our local miners. Most gold shares have been rising but alas, Savannah Goldfields (ASX code SVG) has gone nowhere.

Despite the fact that it has a small but relatively high-grade gold deposit in Queensland, it recently bought its own gold processing plant, sold $11 million of gold in the December quarter and has high hopes of finding more yellow metal.

The value of the Punter's stake in SVG has fallen to the point where it is barely saleable. He hates to take a loss but he has dumped it while he can.

Two of the Punter's other losers, however, have had good news. Lithium Australia (LIT) has had its lithium ferro phosphate powder (LFP) battery material independently tested against two leading commercial brands and given a big tick of approval. LFP batteries are gradually taking over from more traditional lithium ion batteries because they last longer and are less likely to catch on fire.

Lithium Australia doubled sales in the six months to the end of December, but only to $2.3 million. The bottom line was a loss of $1.8 million but that was a big improvement on the $5.2 million loss in the corresponding period.

Meanwhile, Bio-Gene Technology (BGT) has extended its agreement with Clarke Mosquito Control, potentially more than doubling the market for BGT's Flavocide insecticide in the US. Murray River Organics has finally been delisted by the ASX. The Punter wrote it off as a complete loss months ago.