Gold Stocks – It’s Going To Be A Fun Ride

The TSX Venture Exchange is made up of 60% mining companies and has been on a fantastic run as of late. Obviously the beneficiary of a rebounding gold price, the Index is up 30% for the year, and 42% since it hit its record low on January 20.

The TSX Venture has always been cyclical. The only thing that changes is the variation of peaks and troughs. The market cap of the Index was trading at C$7.10 billion in the beginning of 2002, and reached a high of C$64.20 billion at the end of April 2007, or over an 800% gain in five years.

While investors have been ecstatic with the returns seen to date – this is nothing compared to what can happen. A well-known resource fund manager says we are only mid-way through the first inning. Gold Stocks - It’s going to be a fun ride…