Gold’s price gains last year didn’t translate to junior miners as well as many investors might have hoped, Erfle told INN.
While 2019 brought plenty of gains for the gold price, and major gold companies kept busy through the year, junior investors looking for some of the spoils found less joy than they might have hoped for, according to David Erfle of JuniorMinerJunkie.
“It was a very positive year for the gold price, but I think it was more frustration for a lot of junior investors, because most of the junior (miners) didn’t really react as favorably as most would have hoped to the gold price breaking out of a six year base,” said Erfle.
Speaking with the Investing News Network at the Vancouver Resource Investment Conference (VRIC), Erfle also offered his top picks heading into 2020.
In the early stage exploration subsector, Erfle nominated Scottie Resources (TSXV:SCOT) as his pick. Scottie Resources is focused on the Golden Triangle in Northern British Columbia.
For the developer-explorer subsector, Erfle went for O3 Mining (TSXV:OIII,OTC Pink:OQMGF). “A relatively new company — they’ve only been trading publicly for about five months now,” said Erfle, who added that the company has a “very nice” land package in its Cadillac Break properties in Quebec.
Finally, he put Teranga Gold (TSX:TGZ,OTCQX:TGCDF) forward as his small-cap, growth-oriented producer pick, though with a caution.
“Myself and my subscribers have been in that since late last year. The stock has really done well, (but) it’s extremely overbought in the long term, so just be careful with that one if you’re looking into investing.”
Erfle also offered his thoughts on what impact the upcoming US presidential election could have on markets, and specifically how it could change the way that junior investors like himself operate, pointing to how the stock market corrects itself from all-time highs as the key.
“Depending on how that correction plays out — if it’s going to be a panic-type correction — then gold stocks will get caught up into that. But if it’s going to be just a natural, slower-progressing correction, then I think gold stocks could benefit from that (because) you’d see safe-haven capital coming into gold stocks again,” he explained.
Watch the full interview for more of Erfle’s thoughts on the gold price, investor sentiment and the impact of the US election. You can also click here to see our full VRIC playlist on YouTube.
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Securities Disclosure: I, Scott Tibballs, 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.