David Erfle of JuniorMinerJunky shares his stock picks, advice for investors and predictions for the gold price in this video interview.
David Erfle of JuniorMinerJunky met with the Investing News Network at the Vancouver Resource Investment Conference to share his stock picks, advice for investors and predictions for gold in 2018.
Erfle said investors should look for juniors with “a strong management team, a large land package with blue sky potential and a tight share structure.” He’s bullish on gold, silver, copper and zinc, and in regards to gold, he’s looking for a monthly close above $1,375 per ounce because “once that happens we’re technically in a bull market.” Erfle added that “silver juniors right now are leading, which is very bullish.”
His favorite company right now is Marathon Gold (TSX:MOZ) in Newfoundland, which recently released a resource estimate for its Valentine Lake Gold Camp.
Erfle also likes Balmoral Resources (TSX:BAR), which “is about to release a maiden resource finally, after about five years of punching holes up in the Abitibi.” Balmoral has said it will provide further guidance on the timing of an initial resource estimate once three-dimensional modeling (wire framing) of known gold deposits and zones is complete. Erfle also highlighted Klondike Gold (TSXV:KG), which has a property in the Yukon.
Erfle is a self-taught investor who has been in the business for over 15 years. He said one of the most exciting stories currently is Novo Resources (TSXV:NVO), which he was able to get his newsletter subscribers in on shortly after it had a discovery.
Watch the video above for more insight from David Erfle. The transcript for this interview is available below.
INN: So, what should people look for when choosing a company to invest in?
DE: Oh, since I deal mostly in juniors, a strong management team and a large land package with blue sky potential and a tight share structure.
INN: What commodities are you bullish on for 2018?
DE: I like gold, silver, copper and zinc even though it’s at a ten-year high.
INN: And what are some of the companies that you’ve been looking into and that you think have good potential?
DE: Well, my favorite company right now is a company called Marathon Gold (TSX:MOZ), they’re in Newfoundland. They just released a new resource estimate, nearly 3 million ounces of high grade gold. And I also like Balmoral Resources (TSX:BAR), they’re here at the show. They’re about to release a maiden resource, finally after about five years of punching holes up in the Abitibi. I also like Klondike Gold (TSXV:KG). Peter is here but the company is not here. They have a very large land package near Dawson in Yukon and he believes he’s discovered the source of Klondike Gold.
INN: That’s very exciting. In terms of commodities that you’re bullish on, what’s the most interesting story that stood out to you?
DE: The most interesting story probably was Novo. I know the stock has come off a lot lately. The discovery was quite exciting and I was fortunate enough to get myself and my subscribers in before it really took off.
INN: In terms of market as well, looking at the different commodities, what are you predicting for 2018? Like maybe let’s start with gold, do you think the price will go a bit higher this year?
DE: I do. I’m looking for a monthly close above $1,375. Once that happens, we’re technically in a bull market. So were still not technically at a bull market in gold, so once that happens I think you’re gonna see large money coming into this sector finally.
INN: And will that impact silver at all? I mean, I’ve heard that silver has underperformed in 2017.
DE: Yes it has but, silver juniors right now are leading, which is very, very bullish. When you have silver juniors leading in the sector, that is extremely bullish.
INN: Tell me a little about yourself as well. So you are a self taught investor then?
DE: Yes, yes. I got into this sector about 15 years ago. I’ve been a speculator and investor in junior miners professionally since 2007. I write a weekly column for Kitco, it comes out every Friday. And I started this subscription-based newsletter JuniorMinerJunky in April of last year, and it’s sort of a unique newsletter. It’s capped at 200 subscribers because I give my subscribers a 24 hour notice before I buy something, that way we can all try to get it at the same price and I also do not take any money from a company shares options, no monetary compensation whatsoever.
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Securities Disclosure: I, Melissa Shaw, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.