Dave Erfle – Potential Paths Forward To Putting In A Precious Metals Bottom
Dave Erfle, Founder of the Junior Miner Junky, joins us to outline some of the macroeconomic data and technical levels he is watching that could be the catalyst for putting in a bottom in the precious metals sector. Of course, speculation on how far and how high the Fed rate hiking cycle will go is still a large focus. We also look at technical pricing support levels in gold, silver, GDX, GDXJ, that are within range to see at least a short-term bounce from oversold levels. However, Dave concedes that lower levels and a “scare you out” corrective move are still a potentiality. We contrast similarities and difference to prior bear market periods, but ultimately we are in a much different macro backdrop than any time in the last few decades.
We also discussed why the mining stocks haven’t really outperformed over longer time periods the last few decades, and this is precisely why to make money in this volatile and cyclical sector, one needs to buy the dips and sell the rips in the mining stocks. Dave did a great job of building up cash and is starting to add to some positions, but he is still holding back a lot of that cash to be able to seize upon further drops in valuations in the junior mining stocks.