Resource World Magazine

32 www.resourceworld.com F E B R U A R Y / M A R C H 2 0 1 5 Déjà vu all over again Y ou've probably had this happen. You're driving down a street or entering a build- ing and you get that overpowering feeling that you've experienced or seen this event before. The French call it déjà vu. Well, as we enter 2015, this is the feeling I'm getting when looking at the price of resources and the resource markets. Although in this case, I know I've seen this before. Here's just a few examples of current prices (with the previous dates for this price in brackets) – Gold bullion was US $1,230 (Dec. 2013), silver was US $16.98/oz (Jan. 2010), crude oil was US $48.98/bbl (Feb. 2009), natural gas was US $3.27/MMbtu (Sept. 2012), copper was US $2.53/lb (June 2009), the CRB Spot Commodities Index is 432 (June 2010) and last but not least, the TSX Venture Exchange is at 660, which while low, is actually up off of the all-time low set in December, 2014 which, in turn, broke the previous record low going back to 1999. Now being perhaps somewhat older and having had the fortune or misfortune (take your pick on this one) of seeing these deep cycles on more than one occasion, I think I can say with some confidence that we are no doubt closer to a bottom than to a top in resources. What I find of great interest is how many market followers are sure that resources are only going lower. This is especially true now with the intense focus on the falling price of crude oil, which of course is reflected daily at the gasoline pumps. To me it's extremely easy to pile on something that is already going down, but where were these pundits when crude oil was climbing up through US $105/bbl just months ago. Actually, I seem to recall many calls for more stable prices within a new era of North American energy independence. The same could be said for gold bullion and gold stocks. Just three years ago gold miners could do no wrong as the metal broke new all-time highs of over US $1,900/ oz. Then this last summer, gold stocks traded at 15-year lows as gold tested a four year low of US $1,142/oz. As I write, gold bullion is up to US $1,272.60/oz, off of its low and gold stocks seem to be doing the same. The point being, we've seen these large swings in resource prices before. Resources and resource stocks are by their very nature cyclical. They move up and down based on supply and demand as well as prevailing investor sentiment. The difference now seems to be that our 24/7 world demands instant analysis and leaves little leeway for informed dialogue. Gold bullion seems to be moving higher. Crude oil will no doubt, one day, do the same. Déjà vu – we've seen this before. 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 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 at t h e m a r k e t R o d B l a k e

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