Resource World Magazine

F E B R U A R Y / M A R C H 2 0 1 9 www.resourceworld.com 21 At the Market by Rodney Blake I t seems that those of us exposed to resource issues are always optimistic going into the New Year. So far, 2019 supports this and as I write this, in mid-January, gold bullion is up by just over 1% this year to US $1,301/oz. Copper is ahead by 1.5% to US $2.67/lb, while crude oil has surged up by 16% to US $52.70/ bbl. And overall, the TSX Venture Exchange, the best reference to monitor resource issues, is up by over 7% in the first two weeks of 2019 to about 600. So, all in all, a very good start; however, a few good weeks does not a year make as we painfully learned one year ago. Last year, the Venture Exchange surged up by over 12% in early January to break above a two-year resistance level of 850 to finally reach a near four-year high of about 900. Then, just when we thought the worst was over and more new highs were ahead, the Venture rolled over and declined by some 40% over the rest of the year to finish 2018 at a near three-year low of 530. From a four-year high to a three-year low in less than a year – that was one massive kick in the butt. So, while the beginning of 2019 looks good, once again, we know from experience that it takes more than a few good weeks or months to make for a good year. Here's what I think we need to see for this to be a good year for the resource markets. First – I'd like to see the price of gold bullion finally break - through and hold above the multi-year resistance level of US $1,350/oz. Gold is still the primary asset of most resource compa- nies, so as gold goes, so do a majority of recourse stocks. Second – It would be nice to see the price of copper bounce off its current long-term support level of about US $2.65/lb and get back above its previous long-term high of US $3.35. Copper is considered a leading indicator of economic activity, so an upward move in copper should be reflected in the markets. Third – The price of crude oil must get up to and stay above US $60/bbl. Crude oil is the most talked about and most economically sensitive commodity – especially here in Canada. A healthy crude oil market is good for the Canadian economy and the Canadian resource markets. And finally – a good old-fashioned area or commodity play would be nice to concentrate investor interest. Just as the FANG (Facebook-Amazon-Netflix-Google) and marijuana stocks have captured the media's and investors' attention of late, many min - eral companies having some success would help to bring investor interest back to the resource sector. So far, so good. I'm glad 2019 is off to a good start – but I'm hoping to avoid another kick in the butt. n Rodney Blake is an Investment Advisors with Canaccord Genuity Wealth Management, a division of Canaccord Genuity Corp, Member-Canadian Investor Protection Fund. The information contained in this article is drawn from sources believed to be reliable, but the accuracy and completeness of the information is not guaranteed, nor in providing it does Rodney Blake, Canaccord Genuity Corp, or its subsidiaries, or affiliated companies, assume any liability. This information is current as of the date appearing in this article, we do not assume any obligation to update the information or advise on further developments relating to these securities. This article should not be considered personal invest - ment advice or a solicitation to buy or sell securities. Canaccord Genuity and holdings of its respective direc- tors, officers and employees and their associations, from time to time may buy or sell any securities mentioned herein. The views expressed are those of the author and not necessarily those of Canaccord Genuity Corp. He can be reached at 604-643-7567 or rod.blake@canac - cord.comUsual Canaccord/Blake disclaimer 2019 – A good start…but

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