Dave Erfle - $4,000 Gold! What’s Next for Precious Metals Stocks

In this KE Report Daily Editorial, we’re joined by Dave Erfle, Founder and Editor of The Junior Miner Junkie, to discuss gold’s breakout to $4,000/oz on the futures market, what it means for investors, and how to navigate potential corrections in precious metals equities.

Key Discussion Highlights:

Gold at $4,000: Gold futures closed at $4,002, achieving the long-discussed target. Dave explains how this “sell-the-news” reaction triggered weakness across gold equities (GDX, GDXJ) and silver, which remains volatile but in a firm uptrend.

Overbought but strong: After seven consecutive weekly closes above the upper Bollinger Band, the gold-stock sector is due for a cooling period. Dave highlights support levels near $3,750 and $3,500 in gold and why geopolitical turmoil and debt pressures will likely limit downside moves.

Stock selection over timing: While a sector correction may loom, Dave stresses that high-quality juniors remain deeply undervalued, often trading at $20–$30/oz in the ground versus producers’ record margins. He reveals he’s still buying selectively, especially pre-PEA stage juniors with strategic partners and strong financing.

Developers taking control: Many mid-tier and silver developers are now self-financing projects and hiring build-ready teams - showing intent to construct rather than wait for takeovers. Dave cites examples like Vizsla Silver (TSX.V:VZLA) and AbraSilver (TSX.V:ABRA), both well-funded ahead of definitive studies.

Timing the Lassonde Curve: Dave discusses holding through the construction-to-first-pour phase, the “second wave” of the Lassonde Curve where re-ratings often occur, citing Montage Gold (TSX.V:MAU) as a standout 10-bagger in his portfolio.

Silver’s massive setup: Silver’s 45-year cup-and-handle breakout has Dave especially bullish. He’s positioned in 14 high-torque silver juniors, seeing potential for an explosive move as silver plays catch-up to gold’s long-term breakout.

 

Stocks Mentioned: GDX, GDXJ, NEM, VZLA.TO, ABRA.TO, MAU.TO, SKE.TO, TLG.TO, COMEX Gold Futures

 

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