Dave Erfle – Reviewing The Big Picture Bullish Setup As The Precious Metals Consolidate This Week
Dave Erfle, Founder and Editor of The Junior Miner Junky, reviews the larger bullish technical setup in gold, silver, GDX, and GDXJ, and how different types of precious metals stocks are reacting to these higher prices. We start off discussing the technical setup, and that gold has been consolidating over $2000, silver over $25, and the larger cap PM stocks have been outperforming the upward moves in the metals for the last 6 months.
Next we discussed that in addition to the bullish longer-term 12 year cup & handle pattern that, another ratio he is watching is gold in relation to the S&P 500, as it approaches the 50% level once again. He also compares this set up to the period in the early 2000’s when gold had spend over a dozen years trying to break solidly above $500, out of a similar cup & handle pattern, and started to outperform the general US equities. We wrap up with getting Dave to outline how he’s been approaching investing in the gold and silver mining stocks in this environment.