In this Daily Editorial, we sit down with Dave Erfle, founder and editor of the Junior Miner Junky, to unpack the current divergence in the commodities sector. While copper continues its powerful breakout, the precious metals sector has lulled many investors to sleep despite remarkable corporate health and macro tailwinds. Key Discussion Points: Precious Metals Range-Bound Trading: An overview of gold ($4,500/oz) and silver price action relative to their 50-day and 200-day moving averages, and why a technical decision point is rapidly approaching. Stagflationary Economic Drivers: How the latest downwardly revised US GDP data (1.6%) and rising PCE inflation (3.3%) are providing a fundamentally supportive backdrop for hard assets. Unprecedented Corporate Health: A look at the record-breaking Q1 earnings and strong balance sheets of producers like Newmont, contrasting their historically low valuations against an overextended broader stock market. The Speculative Frenzy Absence: Why the lack of a sector-wide bubble in junior equities and multi-year low open interest indicate that the precious metals sector remains completely overlooked. Copper vs. Gold Rotations: Analysis of the strong volume and capital flowing into critical minerals and copper compared to the summer doldrums gripping gold and silver. Click here to visit the Junior Miner Junky website to learn more about Dave’s investment letter - https://www.juniorminerjunky.com/ --------------------------- For more market commentary &amp; interview summaries, subscribe to our Substacks: The KE Report: https://kereport.substack.com/ Shad’s resource market commentary: https://excelsiorprosperity.substack.com/ Investment disclaimer: This content is for informational and educational purposes only and does not constitute investment advice, an offer, or a solicitation to buy or sell any security or investment product. Investing in equities, commodities, really everything involves risk, including the possible loss of principal. Do your own research and consult a licensed financial advisor before making any investment decisions. Guests and hosts may own shares in companies mentioned.

Dave Erfle - Stagflationary Signals, Record Miners Earnings, and the Case for Buying the Boredom in Precious Metals

The KE Report

# Full Transcript

**Podcast:** The KE Report

## Transcript

Hey everyone, welcome to the KE Report in a daily editorial on Tuesday, June 2nd. We are chatting with Dave Erfle. Dave is the founder and editor of the Junior Miner Junkie. Now Dave, just a quick little recap of metals prices here. Gold still right around $4,500. It's just trending in this level right in between the 50-day moving average, which is above, and the 200-day moving average, which is just below at about $4,400. Silver also very much in a range.

The real standout in the metals front has been copper. Copper is $6.65 right now, a very strong price. The stocks too, gold, silver stocks, I'm not seeing much there. There's a couple good stories, but then there's also a lot of stories that continue to drip lower. The copper stocks, those are doing pretty well, and if anything, starting to play even maybe a little bit of catch up to that higher copper price. I continue to like copper over anything, but Dave, what's driving these moves? What do you think are the key catalysts for?

Metals. Yeah, it's been really interesting. The gold sector has pretty much lulled everybody to sleep. I mean, even though Q1 earnings came out and blew everybody away, and these miners are the healthiest balance sheets that I've ever seen, although the gold price continues to hang around $4,500, right?

I mean, last week on Thursday, gold quickly tested its 200-day moving average for the second time, and it's risen now to, like you said, around $4,400. Last week it was $4,375.

Quickly tested it, and then quickly reversed right after the U.S. Came out with more stagflationary economic data. The second estimate of first quarter GDP came in at just 1.6%. That was lower than the first estimate, which was over 2%, and lower than expected.

And then PCE inflation, which is the Fed's preferred inflation target, right? That rose 3.3% annually in April and up from 3.2%. So inflation's going farther away from the Fed's mythical 2% target for the past five years now. It's been well above 2%.

And GDP growth is lower than expected and going in the wrong direction. So that's stagflationary. Now everybody's waiting for job numbers. If we have weak job numbers, that's another arrow in the quill of stagflation.

So the gold price, I think, is reacting to this. And if you take a look at the gold stocks, they're behaving very well as far as the gold price is concerned because we've had that $4,500 level is becoming strong support on a weekly basis. And you can say $75 is becoming strong support on a weekly basis in silver.

And if you take a look at GDX and GDXJ, we have 18-week moving average resistance has been tested a couple times. That's overhead resistance. And strong support now is that 200-day moving average. It's straddling and it's rising.

So that's tightening up. And you've got bullish symmetrical triangles in gold, in GDX, in GDXJ. And the interesting thing is there's also a bullish symmetrical four-month sy...

Dave Erfle - Stagflationary Signals, Record Miners Earnings, and the Case for Buying the Boredom in Precious Metals

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Dave Erfle - Stagflationary Signals, Record Miners Earnings, and the Case for Buying the Boredom in Precious Metals

Transcript

Built for investment professionals

Every day you wait, your competitors are findingedge in conversations you're not hearing.

Every day you wait, your competitors are finding
edge in conversations you're not hearing.