Today, we present to you, "as advertised," the bull run in the Canadian Venture Index.
You can view the Canadian Venture Index as the "Dow Industrials of small resource companies." The index is a gauge of the price action in small gold, silver, uranium, and energy stocks. Note the emphasis on "small"… These are not huge, stable companies like ExxonMobil… but riskier plays on mining and energy.
These riskier plays were clobbered during the 2008 credit crisis. It was after this crisis in December 2008 that we noted these stocks had enormous potential to rebound if the market got "less bad."
Well, the market got less bad… The government's inflationary efforts have pushed the prices of many commodities to fresh 52-week highs, and the "Venture" has skyrocketed. The index is up 129% since our writeup. In the short term, it's due for a breather… But long term, the government's inflationary boondoggle ensures this index – and many of the small exploration firms in it – are going much higher.
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