How to Manage a Junior Gold Stock Portfolio Amidst Volatility – Pro Investor David Erfle

Pro Investor David Erfle reveals how he is managing the recent junior mining volatility and sell-off. David reminds listeners that in small resource stocks risk management is number one. Although he is not predicting it, he even sees the possibility where gold might trade down to $2,800/oz. If gold closes a week below $4,200/oz that is a threshold that David expects would trigger more selling. This recent sell-off, he explains, also creates a nice possible entry point for new gold stock investors. Dave emphasizes that fundamentals remain bullish longer term, but risk management, taking profits, and accumulating in tranches are essential, especially for newer entrants.

David Erfle is a self-taught mining sector investor. He stumbled upon the mining space in 2003 as he was looking to invest into a growing sector of the market. After researching the gains made from the 2001 bottom in the tiny gold and silver complex, he became fascinated with this niche market. So much so that in 2005 he decided to sell his home and invest the entire proceeds from the sale into junior mining companies. When his account had tripled by September, 2007, he decided to quit his job as the Telecommunications Equipment Buyer at UCLA and make investing in this sector his full-time job. David founded the Junior Miner Junky subscription-based newsletter in April, 2017 and writes a weekly column for precious metals news service Kitco.com, whose website attracts nearly a million visits every day.

00:00 Intro

00:52 Portfolio Moves in Volatility

01:59 Deleveraging and Forced Selling

04:33 Cash and Risk-Free Juniors

05:45 Key Gold & Silver Levels

07:21 Corrections in Bull Markets

08:59 Politics Rates and Miner Costs

11:41 Accumulating Fishing Lines

13:40 Valuations and $10,000 Gold Talk

16:54 GDX & GDXJ Support Targets

21:00 Tranche Buying