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Golden Minerals is a junior silver producer with a strong growth profile, listed on both the NYSE Amex and TSX.

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Message: Tax Loss Selling

Tax Loss Selling

posted on Dec 05, 2008 07:35AM

So now we have to contend with tax loss selling right up to near the end of December.

Volume is so low on most of my juniors that I have to believe that much of the selling now is coming from us retail types who can't resist taking a whomping tax loss, especially if there are earlier profits to offset the loss with. Even offsetting 3000 bucks of ordinary income, at least here in the US, or perceived big profits well into the future must be an attractive strategy to many.

Trouble is that the lower the price gets, the more attractive tax loss selling becomes which only lowers the price further, etc.

In that regard, I think that ECU might have been better advised to wait until the new year to announce the 43-101. The headwinds of selling between now and the end of the year may be just too strong and negate any positive impact of a good report. Just have to wait and see, since it probably will make little difference in the long run.

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