In this KE Report Daily Editorial, we’re joined by Dave Erfle, founder and editor of the Junior Miner Junky, to assess the current setup in the precious metals sector and junior mining stocks as we kick off a shortened U.S. trading week.
Despite gold pulling back as much as $75 intraday, Dave notes that junior gold and silver stocks are showing strong resilience and outperformance, with many breaking out from long-term bases. GDX and GDXJ are down modestly, while the TSX Venture Exchange continues to hit 52-week highs, a bullish divergence that Dave believes signals the next leg of the bull market.
Key topics discussed include:
- Rotation from producers and royalty companies into higher-risk juniors
- Why this bull market in precious metals equities could be more sustained and structured than past cycles
- Ongoing M&A activity in the silver sector and signs of more to come
- The case for continued consolidation in gold around $3,300 as miners and developers play catch-up
- A focus on copper developers, and why quality, economics, and access to capital are driving outperformance
- Risks of “too much money” chasing “too many companies” and how to stay selective in a frothy market
Click here to visit the Junior Miner Junky website to learn more about Dave’s investment letter.