Dave Erfle – Gold Getting A Double Premium Off Fiscal And Geopolitical Drivers, Awaiting The Cup And Handle Pattern Resolution
Dave Erfle, Founder of The Junior Miner Junky, joins us to review the recent strength in gold and how much of it is beyond the inflation market pressures and expectations of Fed rate hikes, and due to the geopolitical news out of Ukraine. We discuss the key support levels to watch in Gold, as well as in the miners by way of GDX and GDXJ if some of the geopolitical premium were to come out of the market on some sort of resolution.
Dave also notes that as we approach the end of the month on Monday, that it would also be very constructive on a technical basis to see a close above $1,900 for February. Next we turned to reasons why the mining stocks are still continuing to lag the move higher in the metals prices and both inflation and interest rates play a part. It was pointed out that while higher inflation has affected the near-term outlook for producers margins and developers economic studies, that if the larger term cup and handle plays out where gold moves back up above the recent all time highs that this will vastly improve the margins and economic outlook for gold projects. We wrap up reviewing why Dave is avoiding most drill plays and discovery plays at present, and more focused on finding good value in the miners that already have defined ounces in the ground, in safe jurisdictions, on large projects that would be attractive to the larger miners.