One of the reasons for the extreme sell off in precious metals stocks, especially junior resource stocks trading on the Canadian exchanges, is tax loss selling.

Now I wonder why people are so interested in selling for a loss in a year when I’m betting many of those investors have no profits to offset (my profits are from shorting the market and the financials). Uncle Sam, soon to become Uncle Hussein, is anything but fair when allowing only $3000 on a joint return to be written off as capital loss; the rest must be carried over at $3k per year forever.

What I just found out, and you may not have known, is that the Canadian government is MUCH more accomodating. The Canadian tax law allows investors with losses to actually go back 2 or 3 years and reclaim taxes PAID for COLD HARD CASH NOW.

That, my friends, is a HUGE incentive for tax loss selling this year. Many investors likely booked huge profits over the last three years investing in precious metals & mining stocks.

Make more profitable decisions by getting your precious metals stock investing information from people who specialize in it – Casey Research.