Dave Erfle – Have The Precious Metals Bottomed For The Intermediate Term?
Dave Erfle, Founder and Editor of The Junior Miner Junky, joins us to review his technical outlook for gold, silver, GDX and GDXJ, and what further pricing data he wants to see to indicate that the precious metals sector did just find an intermediate-term bottom. One of the key signals will be silver, the GDX, and the GDXJ further outperforming gold on a percentage basis, and the PMs sticking above their 200 day moving averages.
We discuss how the low sentiment in the summer doldrums has presented a good opportunity to pick up the very highest quality companies on sale, and that after the seasonally week period in late June and early July, that we normally see more interest in the sector moving into August and September. We wrap up getting Dave’s thoughts on portfolio construction in an environment like this, and which types of companies he’s adding to and which ones he is avoiding.