jobs of some sort.
Though the industry boasts about the billions in venture capital it
raises it is estimated 51% of the money raised actually goes to the
companies, the rest being split by brokers and promoters.
Investors in junior mining companies lose 84% of their money some of
the time and all of it 40% of the time.
Out of the more than a thousand mining companies listed on the
Canadian exchanges , only about 50 actually produce minerals, and only
13 to 15 are profitable.
How many junior companies actually evolve into "real" companies that
stayed around for a few years? One percent? Two percent tops.
Because most of the junior stocks listed are penny stocks, there is a
misconception in that investor losses are microscopic. Untrue. Lots of
these stocks have market caps of $150 million for minutes at a time
before their abrupt descent into oblivion.
It's an open secret that the junior mining stocks are used for money
laundering. All that BC bud cash has to be washed. Dirty money is
laundered through brokers who control a stock and arrange wash sales
with other cooperative brokers. The clean money is then moved to a tax
haven.
