Dave Erfle – What’s The New Floor For Gold?
In this Daily Editorial, we are joined by Dave Erfle, the founder and editor of Junior Miner Junkie, to break down the current state of the precious metals sector. Despite a recent pullback, Dave provides a technical and fundamental perspective on why the current market action is a “positive correction” rather than a breakdown.
The discussion covers the macro environment influencing gold and silver, the looming pressure on the Federal Reserve, and why certain junior mining stocks remain incredible value plays even as energy costs rise.
Key Discussion Points:
- Gold and Silver Technicals: Dave analyzes the consolidation patterns for gold at the $5,000 level and silver at $80, noting that the current symmetrical triangle formation suggests a strong base is being built for the next leg up.
- The Federal Reserve’s Dilemma: An exploration of the “stagflation trap” where the Fed must choose between cutting rates to support slowing GDP or holding rates to fight geopolitical-driven inflation that they cannot control.
- Mining Equity Divergence: Insight into why the GDX and GDXJ have pulled back despite high metal prices and why this disconnect offers a “gentleman’s entry” for investors who missed the initial bull run.
- Junior vs. Producer Risks: A look at how rising energy prices act as a headwind for large open-pit producers like Newmont (NEM), shifting the tactical advantage toward early-stage developers with high-margin projects.
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Investment disclaimer: This content is for informational and educational purposes only and does not constitute investment advice, an offer, or a solicitation to buy or sell any security or investment product. Investing in equities, commodities, really everything involves risk, including the possible loss of principal. Do your own research and consult a licensed financial advisor before making any investment decisions. Guests and hosts may own shares in companies mentioned.
Silver looking like it wants to drop lower…….
Soloway says…… we might see silver in the $50’s….
And he also says gold at $3500 by year end
I don’t believe Soloway whoever he is. Silver is expensive but the US dollar is worthless, silver might consolidate but it will do just fine, just check prices on The Shanghai exchange where they aren’t influenced by paper contracts. DT
BBBXF
Juniors going glug, glug, glug. Except for Brixton, BBBXD…
With intercepts like they released today there’s no way Brixton would be red….. in typical fashion for them they show up late to the party as always. The pop would have been unreal during silvers big run
Today’s results should deliver a lot more than a pop. The best hole is equal to almost 2 ounces of gold per ton and is very likely to reach twice that or more since the gold-silver ratio will probably go way below 30 before this bull is over.
https://schrts.co/YjnAJPZg
There may be a pre-market turn tomorrow for Gold (not Silver yet).
PM indexes are all at the lowest Saturation levels (6-7 Red).
NEM, AU, GFI, KGC, PAAS may delay the bottom. BDC
P.S. COPX and CPER are both at Saturation Red(6). Bottomed or soon!
Thanks, that’s interesting. The whole sector is pretty wrung out but it could easily get worse based on the weekly charts.
Not a mere options expiration this Friday — it’s Quadruple Witching! This one could be a lifetime opportunity for those with option trading ability.
Tomorrow morning (or possible Friday) first thing, buy GDX call options if the turn is proven — 2 steps out of the money (OTM)! October 16th GDX puts OTM returned over 3000%. BDC
https://tinyurl.com/4p29hb49
GDX+(TQTT) : Notation
(Initial Formation)
Close stop GDXU.
Remember so many springs arriving shortly after hearing Al & Doc warning, “Beware the Ides of March!”
Silver 1h, failed support… No audio for Dave.
https://www.tradingview.com/x/nxv6P7DC/