Issue link: http://resourceworld.uberflip.com/i/392638
o c t o b e r / n o v e m b e r 2 0 1 4 www.resourceworld.com 19 at t h e m a r k e t R o d n e y B l a k e M AG: tsx MVG: nyse mkt www.magsilver.com Tel: 604-630-1399 Toll-free: 1 866-630-1399 Focused on "High Grade" Silver in Mexico • 44% Interest in Juanicipio Joint Venture • Cinco de Mayo (100%) Upper Manto Zone/Pegaso Zone • Salamandra • Strong Financial Position Underground decline development underway on one of the Highest Grade Silver Deposits on the planet Another bump in the road You may have experienced this. You're driv- ing down the highway one dark night and you suddenly come across a 'road under repair' sign. No worries. You slow down and proceed over the rough and bumpy stretch which is a bit unnerving but you're thinking that in just a few moments the construction will end and you'll be back on track and proceeding at full speed once again. But a few moments turns into a few min- utes which in turn becomes many minutes and still you're bumping along this now bone jarring piece of roadway. The night is pitch black and what your headlights allow you to see are just more and more bumps in the road. But you endure, and then, just as suddenly as it had started, the construction is over and the road ahead is smooth driv- ing once again. You feel good because you managed the rough patch mostly unscathed and now you're back on track. Now, instead of driving, consider your resource stock portfolio. Doesn't it have the same sort of feel to it? Mine sure does. From 2000 to 2011 we had a relatively unobstructed rising resource market with higher highs and higher lows. It seemed that most every dip in the market pre- sented a buying opportunity that quickly turned itself around into another run to new highs. In short, it was relatively smooth driving indeed. But oh how things suddenly changed. Since the spring of 2011 the resource mar- kets have hit one bump in the road after another. It started quite unexpectedly with the Japanese tsunami that took the price of uranium from about US $105/lb to a low of about US $28/lb some three years later. Copper then followed suit falling from US $4.50/lb down to about US $3.05/lb and gold bullion rolled over from a record high of US $1,900/oz to a recent low of about US $1,200/oz. Similar scenarios played out for silver, molybdenum and even natural gas. It was one jarring bump in the resource road after another with seemingly no end in sight. Every attempt at a rally inevitably failed which led to a new lower low. Will this rough patch of road ever end? End it will, and just like on a super high- way, once the resource markets get back on track, I think we will be surprised how fast we get back up to speed by regaining the previous years' losses. But first we must keep negotiating this rough patch of road. Slow and steady is the only way to go if you want to stay sane in the resource markets. Look for opportunities to pick up inexpen- sive positions in quality resource issues as you go. And although I think we must be getting closer to the end of this resource bear market, the past has proven that there can always be another bump in the road. 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 sub- sidiaries, 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 investment advice or a solicitation to buy or sell securities. Canaccord Genuity and holdings of its respective directors, 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 neces- sarily those of Canaccord Genuity Corp. Rodney Blake can be reached at 604-643-7567 or rod. blake@canaccord.com