“The Stars Are Lining Up for Junior Gold Stocks” says Pro Investor David Erfle

“The Stars Are Lining Up for Junior Gold Stocks” says Pro Investor David Erfle in this MSE episode. He points out that gold is now beating inflation causing the producer’s margins to expand. David explains that the gold-silver ration needs to trend below 80 and gold stocks and gold price need to decouple from the stock market in order for the junior gold stocks to begin to rise. He also shares why seven out of ten of his investments will probably fail in this risky sector.

David Erfle is a self-taught mining sector investor. He stumbled upon the mining space in 2003 as he was looking to invest into a growing sector of the market. After researching the gains made from the 2001 bottom in the tiny gold and silver complex, he became fascinated with this niche market. So much so that in 2005 he decided to sell his home and invest the entire proceeds from the sale into junior mining companies. When his account had tripled by September, 2007, he decided to quit his job as the Telecommunications Equipment Buyer at UCLA and make investing in this sector his full-time job. David founded the Junior Miner Junky subscription-based newsletter in April, 2017 and writes a weekly column for precious metals news service Kitco.com, whose website attracts nearly a million visits every day.

0:00 Introduction

0:47 Gold price

2:43 Buyout M&A money rotating back into juniors

4:44 Gold beating inflation

6:07 “Stars are lining up for junior gold stocks”

8:03 Catalysts for junior gold stock move

9:48 Proposed Mexican open pit mining ban

14:59 Yukon after Victoria Gold Corp’s failure

16:46 “Seven out of ten of my investments probably will fail”