VIDEO - David Erfle: Take a Breath and Wait Out Panic with Cash

Interview conducted by Scott Tibballs; article text by Priscila Barrera. 

At the recent Prospectors & Developers Association of Canada (PDAC) convention, David Erfle of Junior Miner Junky shared his thoughts on volatility in the markets and in gold, suggesting that investors take to the sidelines and remove themselves from the panic.

“I expect to see a bounce, but after the bounce there’s a good chance that we could see more panic selling,” he said, adding that he has a substantial amount of cash he is sitting on.

“There’s a lot of questions out there right now, and it’s a good idea to take a deep breath, take a step back and wait until some of this hysteria subsides.”

Speaking about the direction of gold, which at the time of the interview on March 2 was trading above US$1,600 per ounce, Erfle said the markets were waiting to see when the central banks would bring the big “bazookas” back again.

On Sunday (March 15), the US Federal Reserve cut interest rates to near zero to support the economy during the coronavirus pandemic. On Monday (March 16), gold was trading below the US$1,500 mark.

“I think it is going to be interesting to see how the market reacts to (central banks cutting rates), and that is what a lot of people are waiting for,” he said.

Erfle also shared his insight on how investors can protect their wealth in times of uncertainty.

“I think it is good to have a large cash position right now and to take a step back and wait to see how all this plays out because there’s still a lot of panic, a lot of volatility,” he said.

Watch the video above to learn more about Erfle’s thoughts on the current markets and his tips for investors. You can also click here for our full PDAC playlist.

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Securities Disclosure: I, Priscila Barrera, 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.