Vancouver Stock Exchange Rising interest rates spell trouble

The downtrend in Vancouver has become much more pronounced and with interest rates heading higher it could get worse. Japan has been raising its rates which in turn has forced the U.S. to react.

Historically, interest rates have moved in tandem with inflation which apparently is not the case today. Above all this demonstrates just how powerful an economic force Japan has become. Gold doesn’t draw any interest which could spell some price weakness in the coming months.

Some heavily promoted stocks have tumbled sharply, reflecting the seasonal nature of many exploration programs and the fact hot air eventually cools. But several stocks have been bucking the trend including Brigade Resources which was 3 cents higher at presstime to $1.05 in good volume. Hycroft Resources & Development, was also 3 cents better at $12.50 in active trading. Granges Exploration, its controlling shareholder, recently announced plans to purchase another 1.2 million common shares at $11.38. Warrants are attached for a similar number of shares. Hycroft has a producing gold mine in Nevada.

Rex Silver resumed trading today at $1.75 compared to $4.25 at the halt last week. Results from the company’s Scoria property in northern Arizona showed neither gold nor silver. The company says it will use “modified procedures” to test the samples. Cordiale Resources traded for the first time today and was 80 cents bid on 427,000 shares.

Over our report period, International Petroleum jumped $1 to $5.50. The company, headed by Adolf Lundin, recently signed a concession agreement to drill for oil in the United Arab Emirates. Rich Coast Sulphur climbed 90 cents to $4.40 on news the company had raised flow through money to explore its Dragon Creek property. Gold Texas came on strong rising 48 cents to $5.38 after releasing some more impressive drill results from its gold property in Washington State. Inca Resources was the volume leader with a turnover of 1.5 million shares but the stock was unchanged at $2.05. Inca has an advanced-stage gold property in California.