Sprott Global’s Kenton Toews joined us to discuss the major acquisitions taking place in North American as well as global resource stocks. The Chinese oil company CNOOC is buying Canadian oil producer Nexen for over $15 billion. This is a huge premium to current market prices. An Egyptian billionaire just bought La Mancha Resources, a gold miner for $500mm, getting gold in the ground at just $50 per ounce. What do these moves have in common? They are ways for Asians and others holding large amounts of fiat dollars and euros to diversify them, without disrupting the markets. This could be just the beginning; as the currency crises worsen, the rush for the exit will only intensify. So look to stock acquisitions as a relatively easy way to accomplish that task.
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