The TSX Venture is on fire, moving higher and higher as buyouts are announced and investors cash in on Canada’s ‘on fire’ junior resource market.
The TSX Venture has now closed at its highest level in over a year.
TSX Venture – 1 Year Chart
The Venture has not only been inching higher day after day, but has seen an up tick in volume of late.
The Venture had its biggest volume day, trading 137.7 million total shares, since April 29th. Even in late April, the TSX Venture only traded 105.6 million total shares. The rush of liquidity back into the junior markets has come after a second prolific buyout announcement.
On June 7th, Fortuna Silver Mines announced its intentions to acquire Goldrock Mines for an arrangement representing the equivalent of C$1.08 per Goldrock Share. This follows a May 6th buyout announcement by Kaminak Gold which we wrote about here. We highlighted Goldrock back in 2015 as a potential buyout target.
Goldrock Mines – 1 Year Chart
In our exclusive buyout Junior Mining Ebook from 2015 we featured Paul Matysek and past buyouts, including Energy Metals and Potash One. Additionally, we wrote about just two companies he was involved with at the time. One of which, was Goldrock Mines Corp.
When our special report was released, February 10th, 2015, Goldrock had a market cap of $25.6 million, a 52-week range between $0.20 and $0.52 and a share price of $0.285. Mines Corp.
The TSX Venture has its groove back as wealth creation rains down on patient investors.
At Pinnacle, we talked about the chances of a summer rally (in our latest podcast from March 2016). We also saw the move in lithium stocks coming a long way out.
On September 9th, 2015, Alexander Smith published Lithium stocks heat up on TSX Venture. Alexander Smith also wrote about Nemaska Lithium during that time as well.
Click here to read Nemaska Lithium: the most liquid stock on the TSX Venture.
Canadians buy silver
Clearly, Canadians have been buying precious metal-related stocks; however, they have also been loading up on physical precious metals.
Sprott Money reported on June 7th that:
“Sales of their ever popular Canadian Silver Maple Leaf have surged in Q1 2016. The results are in and a new record has been made! The mint sold a stunning 10.6 million oz, a 27% increase over their strong sales experienced this time last year in Q1 2015. In addition to this, it is well over 1 million oz more than their all-time record seen in Q3 2015.”
Click here to read the entire story.
This buying activity speaks says a lot when it comes to the investing mindset of many Canadians. Regardless, the bull market on the TSX Venture is raging as investors pile back into their favorite stocks.
bauman6 leads June Stock Challenge
Pinnacle member ‘bauman6‘ is still our leader and saw his combined average return increase to 65.62%. bauman6 selected Alset Energy, a junior lithium explorer, which has been trading to new all-time highs on huge volume lately.
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