What Has David Optimistic About The Gold Sector?

January 8, 2019

David Erfle, Founder of The Junior Miner Junky joins me to share the factors that have him optimistic about the metals sector. He is looking mostly at the silver price and the action in some of the juniors as signs that more money is entering the sector.

David Erfle on the strength in gold stocks

Click here to visit David’s site for more information on his newsletter.

    Jan 08, 2019 08:41 PM

    Hi David

    From time to time you mention ‘stink bids’ and I was wondering what guidelines you use when setting your price target and duration. Sometimes a stock will drop 40 percent in one day when a poor drill result comes in. That could put you down 20 or 30 percent out of the gate.

    Jan 08, 2019 08:06 PM

    Hey Robert,

    I use company valuation metrics and also base decisions on how the sector is trading. Tax-loss selling season in December and June/July is the best time for stink bids. During tax-loss season, company fundamentals do not factor into investors reason for selling and the sector is usually ignored by most during the “summer doldrums” in June/July. Best of luck.

      Jan 08, 2019 08:31 PM


      Jan 09, 2019 09:50 AM

      Hi Dave

      Thanks for the feedback. How low below the spot price do you usually go? 10%? 20%?

    Jan 08, 2019 08:10 PM

    David, What is jr producer name u mention?

      Jan 09, 2019 09:56 AM

      Companies mentioned were Teranga Gold (TGZ.TO) & Americas Silver (USA.TO) I have been accumulating shares in both since mid-December. Best of luck

    Jan 08, 2019 08:13 PM

    David, what was your overall return for 2018 ?

      Jan 09, 2019 09:58 AM

      Junior portfolio return since 2016 is 126%
      2016: 99% gain
      2017: 45% gain
      2018: 19% loss

        Jan 09, 2019 09:08 PM

        Nice work David!