Dave Erfle – How To Interpret The Recent Strength In Junior Mining Stocks And Structure A Successful Portfolio
Dave Erfle, Founder of The Junior Miner Junky, joins us to review the precious metals sector and remains encouraged by the strength in the mining stocks, and silver, despite the larger corrective move in the gold price. We note how the mining stocks have diverged somewhat from the metals, and they are consolidating at t higher level into compression triangles, have mostly held onto their gains over the last 6 weeks, as the geopolitical premium came out of the markets. Dave noted that both GDX and GDXJ both made 52 week highs just last week and were overbought on the RSI levels, so taking a breather to base makes sense here, and even today when the PMs sold off hard in the earlier morning, most of the miners were bought right back up again and they quickly rebounded back up higher again.
We spend the remainder of the interview discussing Dave’s approach to getting into positions over time, what fundamental steps he takes beforehand when doing his due diligence on companies and management teams to build his watchlist, and then what technical setups he looks for to initiate bids. We wrap up with how the he has structured his portfolio at this point in the cycle, with the number of and which stage of companies he has selected, and then how that may change over time as the metals break out to new all time highs.