Let’s compare the charts of gold, GDXJ and actual gold juniors

March 10, 2020

With gold trading at a 7 year high you would think the stocks would be doing much better. GDXJ is maintaining it’s recent range but the juniors continue to get hit hard by a rush to cash.

Dave Erfle joins me to discuss his strategy of building cash. More importantly what he will be watching to give him the all clear to get back into some of his favorite juniors.

Click here to visit Dave’s site learn more about the stocks that are top of his list.

    Mar 10, 2020 10:40 PM

    One issue Ive considered, should 1 person at the mine get the virus, the mine will shut down.
    Silver corp and Minco for example are in China.

    The virus has reached Mexico too.

    Just a thought.

      Mar 10, 2020 10:41 PM

      Better have phyz…………….lol

    Mar 10, 2020 10:47 PM

    Phyzz is good alright.

    I once heard someone say”buy low sell high” is the wrong way to look at things, they insisted the correct wording is “buy problems sell high”.

    Thinking that way things look pretty good right now.

    Mar 10, 2020 10:07 PM

    Robert Scott Bell, one of the most brilliant doctors in the world, will have a Q&A session about the Wu flu at 7pm EDT or 4pm PDT tonight on
    Dr. Frieda needs to hear this.

      Mar 10, 2020 10:11 PM

      Sorry, the Robert Scott Bell session is on March 16, not tonight.

    Mar 10, 2020 10:27 PM

    Note……..again………..there were 623,000 abortions……… 2016……
    We continually KILL babies ever year… the 70 over a MILLION…..

    Mar 10, 2020 10:05 PM

    Don’t Don’t ( The Federal Reserve ) Will !

    Mar 10, 2020 10:12 PM

    Overall, most of the junior miners are getting completely slaughtered. GDX and GDXJ are not representative of the juniors at all, and are filled with Majors, Mid-Tiers, and Streamers/Royalty companies.

    While it is good news that the larger Producers have held up a little more respectably than the Junior producers, developers, and explorers, (and rightly so with Gold still in the mid $1600’s), it is still concerning to see the smaller miners and Silver lagging and getting sold down so hard.

    This is some of the hardest selling I’ve seen in my trading account, or in the few hundred most widely followed juniors that I can remember since 2008 or 2015. There were rough patches the last few years, but the sell downs were not repeated double-digit declines on such heavily volume, with hardly a breather before the next wave lower.

    2 weeks ago selling started to escalate on Feb 26th and 27th and then there was the terrible Feb 28th Friday flash crash. There was a snapback rebound the beginning of last week on Monday March 2nd and Tuesday March 3rd, followed by more selling the end of the last week with another rough day on Friday the 6th, but that seemed like it had exhausted much of the selling. However, more selling has been continuing this week both yesterday and today across the majority of the junior sector (Yes, I’m sure there are a few exceptions, but that has been the trend).

    The PM miners were overdue for a pullback, but this has been far more steep, with far more selling, and far more carnage than most were expecting, with the Coronavirus selling, compounding market selling, and then the Oil wars coming in to suckerpunch the markets while they were down.

    For the last 2 1/2 weeks I’ve felt like this guy:

      Mar 10, 2020 10:28 PM

      Even though I haven’t invested in Oil Stocks since 2016, I must admit some of the carnage in the energy space is also looking quite interesting.

      Personally, I don’t have enough dry powder to take out a substantial position in the main 3 ETFs (XLE) (XOP)or (OIH) but they are down in a big way over the last year, and especially since the first of the year.

      This contributor over at summed up the current state of the markets and the questions of which way to invest pretty well:


      @kerfuffle – “Inquiring minds want to know. Do I sell my gold stocks to buy cheap oil stocks or do I sell my oil stocks to buy cheap gold stocks? Or do I just wait for people to sell their Apple and Amazon and buy in to my gold and oil stocks? Or do I just put my computer away, drink cheap whiskey, smoke weed and come back in 6 months?” #Gold #Oil

        Mar 11, 2020 11:20 AM

        Times are tough Ex. Plenty of further pain ahead too I fear. With all this rhetoric of low interest rates and stimulus packages, Im afraid all this will achieve is increased debt, demand for further rate cuts and a disconnect from reality. The bigger picture has been missed again.

        Mar 11, 2020 11:26 AM

        Or buy alcohol and weed stocks perhaps????

    Mar 10, 2020 10:41 PM

    Ask Bubba. I am Black Monday. Oil going nowhere. Big institutions scooping up gold mining Jr shares on the cheap. Let the dead bury the dead. Trump has nipped this baby in the bud–

    Mar 11, 2020 11:34 AM

    My JDST is up 30% in 4 days….as I was sharing shares are going to hit the skids like all else…..Not a time to be catching knives….When the bottom comes it will be wonderful to load up!

    Mar 11, 2020 11:00 PM

    Update…. now up 50% on JDST in a few days. Told you gold bugs you would be crushed….It ain’t over by a long shot…
    Thank God my large is in RE.

    Mar 11, 2020 11:08 PM

    I wouldn’t be surprised to see JDST trade far higher in time, but will take my stupid profit tomorrow in case a temp bounce in the general market….I laugh at gold bugs in love with gold stocks.. They follow the general