MINING MARKETS & INVESTMENT NEWS — EASTERN MARKETS — Global markets take roller-coaster ride

Markets around the world were rocked during the Aug. 26-Sept. 1 report period as trading sessions saw maximum volatility and volume.

Jittery North American markets sunk several percentage points on Aug. 31, as the troubled economies of Asia, Russia and Latin America threatened more seriously than ever to put an end to our 8-year bull market. However, by Sept. 1 and 2, the markets had already staged two rallies.

The Toronto Stock Exchange mimicked the turmoil in New York and abroad, with the TSE 300 composite index dropping a stunning 11.5% to 5,538.10 points, down 29.2% from the market top of 7,822.25 points recorded April 22. For the report period, the metals-and-minerals sub-index sunk 11.6% as it slid to 2,505.92 points while the gold-and-precious-metals sub-index fared even worse, plummetting 15.6% to 4,320.07 points.

Hitting just US$273 per oz. on Aug. 28, gold prices dropped US$2.50 over the week to US$280 per oz. at the London morning fix of Sept. 2. Meanwhile silver dropped US12 cents to US$4.85 per oz., with platinum popping up US$7 to US$368 per oz.

Canada’s major gold miners were hit hard during the trading period, both by the sagging bullion price and the broad market selloff. Barrick Gold was down $4 to $20.55; Placer Dome dropped $2.25 to $13.20; Kinross Gold lost $1.11 to hit $2.85; TVX Gold shed 72 cents to hit $1.90; and Cambior lost 5 cents to hit $6.90. Franco-Nevada Mining lost $4 to fall to $21.10 while Euro-Nevada Mining dropped $1.25 to $15.15.

A 5 cents gain in nickel prices to US$1.87 per lb. failed to boost the shares of Canadian nickel miners, with Inco plumbing new depths as it lost another $1.60 to fall to $13.50 and Falconbridge tumbling $1.05 to $12.15.

The rest of the base metal prices were generally stable for the week, as the base metal producers were socked by the market downturn. Noranda dropped $3.45 to $16.60; Teck lost $2.75 to fall to $9.25; Rio Algom dumped $3.85 to hit $16.15; and Cameco dropped down $2.50 to $27.

Boliden shareholders are still wondering when the share price will bottom out — over the report period, the struggling major sunk another $1.10 to fall to just $3.65.

Zinc producer Breakwater Resources dropped 27 cents to 84 cents as the company announced it was taking its metallurgically difficult Caribou mine in New Brunswick off the back burner and putting it in the freezer.

With the world diamond market in a prolonged slump, Dia Met Minerals class B shares hit 2-year lows as the issue dropped $3.95 to $15.90 for the week, down from the $23 range seen less than a month ago. In a similar vein, the other high-profile diamond junior, Aber Resources, sunk $2.65 to $7.75.