The KE Report, Released on 3/14/24
Dave Erfle, Founder and Editor of The Junior Miner Junky, joins us for a conversation highlighting a few different factors stacking up that show improving sentiment in the preciousmetals sector. We start off noting the solid break higher in gold prices over the last 2 weeks despite the moves in the general markets and interest rates. We also discuss that gold corrected down slightly this week, after the hotter inflation reading, but that silver and the precious metals mining stocks have been responding by showing more relative strength versus gold. That isn’t enough to make it a trend yet though, and so he wants to see gdx and gdxj break above key resistance levels on increasing volume. Dave also still wants to see a definitive monthly close above $2100 to confirm the technical breakout from his perspective. Overall though he points out that it has been encouraging to see gold, silver, and the PM mining stocks bouncing off recent lows from a pricing perspective, and even copper rallied up over $4 resistance recently. We wrap up getting his views on if there is more value in the medium-term in the gold stocks or the silver stocks, and Dave shares some best practices for resource stock investing.
David Erfle is a self-taught mining sector investor. He stumbled upon the mining space in 2003 as he was looking to invest into a growing sector of the market. After researching the gains made from the 2001 bottom in the tiny gold and silver complex, he became fascinated with this niche market. So much so that in 2005 he decided to sell his home and invest the entire proceeds from the sale into junior mining companies. When his account had tripled by September, 2007, he decided to quit his job as the Telecommunications Equipment Buyer at UCLA and make investing in this sector his full-time job. David founded the Junior Miner Junky subscription-based newsletter in April, 2017 and writes a weekly column for precious metals news service Kitco.com.