Dave Erfle, Founder and Editor of the Junior Miner Junky, joins us to discuss what may change the general lack of interest from generalists and even resource investors in the precious metals sector, and in particular, the mining stocks as 2022 unfolds. Dave outlines parallels the current low volume apathy in the gold and silver mining stocks as reminiscent to the period in late 2015 to early 2016 in a few different ways; from the tightening Fed policy, to a backdrop of surging general US equities markets, and then the low relative valuations of companies with ounces in the ground.
Next we take a look at trading in the largest gold mining company and sector bellwether, (NEM) Newmont Mining as a potential early indicator of some generalist capital coming into the sector, but counterbalance that with the lackluster trading in GDX and note the importance of the $30 level on the longer term monthly charts. Dave outlines that the current macroeconomic backdrop most similar to the 1970s stagflationary environment, and goes on to opine on Fed policy, and why he is not concerned about a big pullback in gold, or a downside breach of $1675, heading into the period leading up to the first rate hikes.
We wrap up with why Dave is most attracted to high-margin single-asset gold development projects in safe Tier 1 jurisdictions, and how they have been the most sought after companies in the latest wave of merger and acquisition transactions over the last few months.