David Erfle, Founder and Editor of Junior Mining Junky, joins us to review why he believes we’ve seen the precious metals sector bottom and turn higher after the Fed taper and hotter October CPI inflation reading. We start off with the realization from the broader investing community and media that inflation is sticking around, and the growing concern about the Fed’s ability to effectively deal with this through their policy tools.
Next we discuss the larger macro backdrop that pushed gold, the GDX, and GDXJ above key resistance levels. Dave highlights the key $1900 overhead resistance on the monthly and quarterly charts, that he would like to see Gold close above to build more momentum and bring in more investors.
We transition over to a review of the PM mining stocks and noted the recent outperformance of the smaller junior gold and silver stocks, further down the food chain. We wrap with thoughts on what fundamental drivers in the US equity markets and the kinds of changes in investor psychology that would bring more general investor capital flows into the precious metals sector.
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