Dave Erfle, Editor of The Junior Miner Junky, joins us to discuss the pullback in precious metals prices on Friday, but after gold, silver, GDX, and GDXJ have been breaking higher for the last 6 weeks. On the charts pricing ran into key resistance levels earlier on in Friday’s trading session, and then pulled back to end the week. We discussed the Fibonacci extension level that was nearly tagged in gold for resistance, and that Silver ran into that stiff longer-term resistance right below $30. GDX and GDXJ still closed up near 52-week highs, but falling a bit during the trading session, after getting to overbought levels. Dave points out that it is a bullish signal overall to see all these charts hit overbought levels, and that a consolidation of these big moves higher is healthy and expected.
Shifting over to the gold and silver mining stocks, we discuss the changes in volume recently, and that its been encouraging that even some of the smaller juniors have got a bid over the last few weeks. We consider that there has been some M&A in the sector, but we need to see more companies rolled up into larger companies of scale to attract more generalist interest. We also looked at how margin expansion and moderating costs may start showing up in future quarterly reports as another driver that may bring more new investors into the PM stocks. Wrapping up Dave discusses what types of companies he has positioned in for this bull market, and few portfolio adjustments he plans to make as things keep developing.
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