Dave Erfle, Founder and Editor of The Junior Miner Junky, joins us to discuss the continued move higher in the precious metals rally over the last few weeks, fueled by banking uncertainty and expectations that the Fed tightening cycle is nearing its end. Dave brings up a few key factors that are stacking up for a potential breakout higher in gold as we approach the month-end and quarter-end closes this Friday. Gold and some of the mining stocks are forming ascending symmetrical triangles, along with a 12 year and smaller 3 year cup and handles, with a propensity to break out higher out of those chart patterns. In addition there is a fairly bullish set up on the COT Commitment Of Traders reports. One more key factor is that recently silver and PM mining stocks have started to outperform gold again and are following in this continued leg higher in March.
We spend the latter part of the discussion pointing out how little generalist interest there still is in the sector as gold approaches a potential breakout, and what may cause an influx of new buyers to come in and push prices higher. Dave feels once the $2000 level is a solid floor in gold pricing, that more institutions and investors will start getting more interested. We also review that it may just be more generalists waking up to the outperformance of gold across the board over most other asset classes from stocks, to bonds, to energy, to commodities, to currencies, that causes more investors to get a small allocation to the precious metals sector.
.