Dave Erfle – Technical Outlook On Gold, Silver, GDX, GDXJ Along With Big Picture Views On Macroeconomics And The Junior Mining Sector
Dave Erfle, Founder and Editor of The Junior Miner Junky, joins us to share his technical outlook on gold, silver, GDX, GDXJ, and also reviews the big picture macroeconomic trends and his reflections on where we are at in the junior mining sector. We start off by taking a look at the key pricing support and resistance levels that he is watching for as the precious metals sector continues to correct downwards on a short-term time frame. However, we also back up our view to the longer-term charts which are still constructive for a continuation of the bull market, despite the recent sector pullback.
With regards to the PM mining stocks, we look at the dichotomy between the quality companies with access to capital that are still doing quality work and moving their projects forward, and then the rest of the sector that is starved of capital and unable to proceed with much meaningful work and are not able to advance their projects. One point that was made is that there are just too many single asset companies with their hand out for funds, but not all of them are going to be able subsist themselves with sentiment this bad. As a result Dave would like to see more mergers of equals in the sector to bulk up in to larger more substantial companies, with several projects, and dual listings, and greater liquidity, which he feels would be more attractive to generalist investors.