Dave Erfle – Technical Outlook On The Precious Metals And Thoughts On The Recent Mega-Mergers
Dave Erfle, Founder and Editor of The Junior Miner Junky, joins us to review his technical outlook on gold, silver, and the precious metals stocks, as well as thoughts on the recent trend of more “mega-mergers.” We start off noting the similarities between the 26-month consolidation of the precious metals sector from the summer of 2020 to the recent low in Q4 of 2022, to the 26-month consolidation from the summer of 2016 to Q4 of 2018. There was the initial rally coming out late 2018 into early 2019, then a corrective period, and then another big move higher later in 2019, and that may be a pattern that rhymes with what we are seeing now. Dave provides some technical pricing support levels for gold, GDXJ, and silver for investors to keep a lookout for.
Next we shifted over to strategies for investors to consider regarding scaling into positions during the corrective pullbacks, versus waiting for clear breakouts to add into strength. We wrap up with a discussion around the recent pickup in mega-mergers between the major producers, reflecting on the news this week of Newmont Mining (NEM) putting in a bid to acquire Newcrest Mining (NCM.AX), after also just seeing recently Agnico Eagle (AEM) and Panamerican Silver (PAAS) beat out Gold Fields (GFI) in the bid to acquire Yamana (AUY). Dave provides some insights on what this may mean for garnering more generalist investor interest, what other majors may move next, and when it will filter down to acquiring the junior development companies.