Founder of JuniorMinerJunky David Erfle told the Investing News Network that he thought investor sentiment among attendees of the Vancouver Resource Investment Conference was “cautiously optimistic” about 2019.
Erfle said that while 2018 was a rough year for commodities, for junior miners it was even rougher.
“Junior miners acted a lot worse than I expected them to act.”
“During the fourth quarter last year, gold formed this four-month accumulative bottom and we saw a lot of investor interest and bidding coming into major mining companies, mid-tier mining companies and royalty companies, and yet the juniors were continually sold for tax-loss. I think that created an opportunity,” he said.
“I think the biggest lesson learned was the gold price still needs some time to base here. It’s been basing now for almost six years. If you start accumulating now into some high-quality juniors you should do well by the end of the year.”
Looking at gold prices, Erfle said he was hoping not to see gold dip below US$1,240 an ounce.
“Well, the level I’m really looking at is that US$1,375 level — that’s been really strong resistance for six years now. If we see a monthly close above US$1,362, that would be very encouraging because that would be a technical bottom and a lot of traders would be coming into the sector then.”
Erfle also offered up his top stock picks from his three favourite sub sectors — being growth-orientated producers, developer-explorers and early-stage exploration companies.
Watch the video above to learn more about Erfle’s thoughts on the junior resource sector. You can also click here to view our full VRIC 2019 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 contributed article. 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.
