1. The “D” Word

There is little love in the junior mining sector this AM. The Canadian venture exchange (TSXV) is close to a new three year low. The decline since March 2011 has been breathtaking. It is true that these “venture” companies are the most illiquid in terms of trading activity and those most in need of cash. As an overall case study of the economy we make the case that the TSXV decline (more than half the index value has evaporated over the past 16 months, down 30% in the last 4 months), is shouting deflation – at least the expectation of deflation.

Written by Michael A. Berry, Ph.D. - [ Discovery Investing Web Site ]