Save Canadian Mining’s goal is to have a securities trading rule known as the “uptick rule” or “tick test” reinstated.
Save Canadian Mining’s goal is to have a securities trading rule known as the “uptick rule” or “tick test” reinstated. Lynch is its founder and Sprott is one of its backers.
“I was very aware as an investor that the absence of the tick rule was working very, very much against investments, of which I have lots of those investments,” said Sprott.
“I think the rule was changed because the powers that be — the banking syndicates and the brokerage trading companies — held sway at the exchanges and brought about those changes because it would let them do the trading,” he explained.
Save Canadian Mining recently released new data on changes that have taken place since the uptick rule was removed. Those include a dramatic drop in the value Canadian mining companies have contributed to the country’s economic activity.
At PDAC, Sprott, a seasoned market participant, also took part in a session for investors new to the resource space, offering attendees tips on navigating the market. Currently he is concerned about the impact the COVID-19 coronavirus is having on the global markets, and he said he believes the virus has a very high potential of becoming a pandemic.
In fact, he even mentioned he was surprised the convention — which is often hailed as the mining sector’s premier event — wasn’t canceled amid growing concerns around the spread of COVID-19.
Despite his mounting worries and the issues he sees within the Canadian resource industry, Sprott still offered a plethora of tips for investors to build a strong investment tool kit. One of his key pieces of advice was to be skeptical and buy small.
“If you want to make money, you have got to buy small stocks,” he told the crowd.
Watch the interview above to hear more from Lynch and Sprott on Save Canadian Mining and Canada’s mining space. You can also click here for our full PDAC playlist.
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Securities Disclosure: I, Georgia Williams, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.