Dave Erfle – Precious Metals Sector Status As The Markets Await CPI Data and Fed Meeting Minutes
Dave Erfle, Founder and Editor of The Junior Miner Junky, joins us to review the waiting game in the markets around the CPI inflation data to be released this Friday, and any messaging from Jerome Powell and Fed officials in next week’s FOMC meeting. We review both the technical and macroeconomic drivers affecting the precious metals sector, and related mining stocks. However, there are also concerns that lower prices may be in store in the precious metals sector, especially the gold and silver mining stocks we see any further turbulence in the general markets, coinciding with further rounds of Fed rate hikes. With so much uncertainty in the markets, Dave is comfortable keeping a healthy cash position in place for now to have buying power to take advantage of further pullbacks. We also discuss some of the technical support levels in the mining stocks via GDX, and GDXJ that could come into play in a capitulation event.
We wrap up this discussion on a bright note, reviewing the recent stellar exploration results released by Lion One Metals (TSXV: LIO) (OTCQX: LOMLF), with drill assays returning 20.86 g/t Au over 75.9m, including 43.62 g/t Au over 30.0m which includes 90.35 g/t Au over 7.2m, beneath the current resource fully within the permit boundaries of the Tuvatu mining lease. Dave pointed out that in this volatile sector, that in only takes a few companies shares moving higher in such a big way to form a hedge to the rest of ones resource stock portfolio. When we see any mining stock go through big moves, similar to what we’ve seen the last 2 days in Lion One, then it can really change the overall performance of one’s overall portfolio, so the volatility can definitely move in both directions.