As more people in developing nations gravitate towards a higher standard of living, it is creating huge demand for commodities. For governments of these countries, particularly China, they need to continue expanding their economies and creating jobs for their people if they want to remain in power. For those seeking to profit from the commodities boom, Canadian resource companies is what investors seek. Popular resource investments include gold mining stocks and oil stocks. Here's why:

  • Canada Is A Resource Rich Country: Despite its modest population, Canada is blessed with many natural resources. With its business friendly environment, resource companies have plenty of opportunities to find major deposits and develop them. These resources include base metals, energy, gold, silver and uranium.
  • Political Stability: In an era of high commodity prices, governments are more likely to nationalize a resource company's operations. Canada is one of the few countries that are still open to private investments, particularly in the energy field.
  • Excellent Management and Expertise: Because Canada is rich in commodities of all types; it enjoys a track record where many junior resource companies evolve into world-class resource corporations. Many of these people who had worked in these companies leveraged their expertise and skills to find successful resource companies. They include geologists, engineers and chief financial officers.
  • Strong Investor Interest: Resource companies like to lists on the Canadian exchanges to take advantage of investors' strong interest for new and upcoming commodities companies. Furthermore, there are plenty of research analysts who actively follow these companies, creating interest among institutional investors and retail investors. Even with a junior exploration company, strong investor interest means their shares enjoy good liquidity.

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