Dave Erfle – Encouraging Strength In The Mining Stocks During The Pullback In Gold And Silver
Dave Erfle, Founder of The Junior Miner Junky, joins us to review the encouraging strength in the precious metals mining stocks, and how they have held onto some gains despite the corrective move we’ve seen in gold and silver as the geopolitical premium came out of the markets since the end of last week.
We start off by reviewing the generally bullish longer-term technical setup in gold despite the recent pullback, and that Dave is looking at support levels like $1921, $1900, $1880, and $1850. $1921 has been tagged several times recently to close up last week and even in as the markets closed today. $1900 is still strong support on the monthly chart.
GDX has confirmed a bullish cross on the moving averages, and GDXJ has marginally broken above the $47 resistance a few times, which is a bullish signal that got some junior miners moving higher recently. Dave feels the base of support has built in the metals and miners, and that more projects will start incorporating the higher metals prices in their valuations and economic studies. We wrap up with a few thoughts on some recent mergers and acquisitions and how this trend is likely to keep unfolding with some juniors still at lower valuations while the larger companies are moving higher and looking to replace ounces in the ground.