Resource Stock Roundup: Tuesday, December 16th, 2008
Dec 16th, 2008 | By Doug Casey | Category: Financial NewsThe Canadian markets started the trading week off by going on their usual roller coaster ride with gains seen at the open gradually eroding into solid losses by the close of Monday trading. For the tale of the tape, the TSX Exchange fell 0.63%, while the TSX Gold Index gained 3.7% and the TSX Venture Exchange, Canada’s largest junior exploration bourse, lost 0.24% with the declining issuers beating out the advancers by a 458 to 399 margin on volume of 244 million shares traded.
After making a stink ball bid earlier in the year, Rusoro Mining has come back and is offering three of its share for every Gold Reserve (AMEX:GRZ) share. The move would alleviate Gold Reserve’s problem in Venezuela because Rusoro has the ears of the Chavez government. Rusoro ended the day down C$0.105 at C$0.255, while Gold Reserve soared C$0.28 to close at C$0.73.
Due to reduced metal demand and the persistent weakness in zinc prices, Teck Cominco (NYSE:TCK) is shutting down its Pend Oreille operations in Washington State. Teck ended the day up C$0.25 at C$5.70.
Exeter Resource (AMEX:XRA) tagged 72.76 grams gold and 6,471 grams silver per tonne over 3.36 metres at its Cerro Moro project in Argentina. Exeter ended the session up C$0.32 at C$1.95.
Sprott Resource added C$0.11 to close at C$2 after reporting that it acquired 40,475 ounces of gold bullion and 852,478 ounces of silver bullion.
It was a rather busy trading day, which suggests that the tax loss selling may be kicking in. That said, despite the modest losses, the resource sector appears to have found a floor. We will see what Tuesday trading has in store.
Resource Stock Roundup: Tuesday, December 16th, 2008
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Doug Casey is a contrarian investor, sought-after public speaker and author of several books. His work "Crisis Investing" held the position of # 1 bestseller on the New York Times list for 26 consecutive weeks. Doug's unusual views on the economy - and just about everything else - have gained a huge following in the investment community, and it certainly helps that his stock recommendations of undervalued junior exploration companies have made his subscribers millions. Now in its 27th year, Doug's monthly newsletter, the International Speculator, is one of the most established and esteemed publications on gold, silver and other natural resource investments. Together with the Casey Energy Speculator, it covers a broad range of carefully selected stocks with the very real potential of double- and triple-digit returns within 12 to 24 months.