In this Daily Editorial, we are joined by Dave Erfle, the founder and editor of the Junior Miner Junky. Following a challenging week for precious metals, Dave provides a breakdown of the recent technical reversals, macro shifts, and what lies ahead for major producers and junior miners alike. Key discussion points include: The Precious Metals Rebound: Why recent technical breakdowns on the daily and weekly charts didn&#x27;t prevent a powerful short-term turnaround, and what these potential island reversals mean for the sector&#x27;s immediate direction. Fed Speculation and Macro Pressures: How upcoming central bank decisions, persistent inflation realities, and geopolitical resolutions are reshaping investor expectations for the back half of the year. The Valuation Disconnect in Mining Equities: The gap between current producer stock prices and their record-breaking profit margins, highlighting a historical anomaly in how the market values cash-flowing miners. Mexico&#x27;s Shifting Permitting Landscape: The major underground permitting breakthrough for a junior miner in Mexico. 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 - Precious Metals Rebound: Key Technical Levels, Fed Speculation, and Mining Sector Valuations

The KE Report

# Full Transcript

**Podcast:** The KE Report

## Transcript

Hey everyone, welcome to the KE Report in a daily editorial on Tuesday, June 16th. We are chatting with Dave Erfle. Dave is the founder and editor of the Junior Miner Junkie. Now Dave, last week was a pretty tough week for precious metals and the underlying stocks until the end of the week when things started to turn around. We did have some technical breakdowns on the daily and weekly chart, but then Thursday, Friday, things started to turn around and Monday, very strong start.

to the week for a lot of sectors on what sounds like a peace deal from US-Iran war. Fact of the matter is, now we're on the rebound for precious metals. Again, the biggest question is how, where does this rebound go to? But let's just start off with your reaction, Dave. What are you seeing in the charts? What do you think about the reversal, the new, I guess, short term, really short term right now, uptrend that precious metals are in?

Dave Erfle Well, the reversal is not really surprising, especially after what we talked about last week. In the miners, the gold miners bullish percentage index hitting zero for the first time since late 2015.

And in late 2015, it hit zero after the GDX had gone down 85% washed everybody out of the sector. And I didn't expect it to go back to see zero again, especially in a bull market. That was just a gift. I mean, following a massive 65% gain in 25, the gold price is down just like 3-4% this year.

And the miner sent and the bullish percentage goes down to zero. I mean, that's crazy. And at the same time, you know, these miners are printing cash. I mean, their margins are up $2,000, $3,000 an ounce. And they paid off all their debt. You know, they're flush with cash. I mean, it's just like a head scratcher how bullish this is. And as far as the market is concerned, they're still, you know, they're pretty much like looking at gold stocks saying,

Hey, I made 200% last year on my gold stocks and they're starting to correct here. So maybe I should sell and sell it and put it into SpaceX or put it into AI because it looks like the gold trades over. But that is far from very far from the truth as we also discussed last week. I mean, zero is lower than the BPG DM went even than the COVID crash in 2020.

And it's already, now that it's bounced here this week, it's back up to 22 now. And what I'm really looking at is that $4,500 level in gold and the $85 level in GDX and the 110 level in GDXJ. When all those gave way, we had gaps down and we had capitulation selling in GDX and GDXJ. Now we've got island reversals on the daily chart there.

And they're back above 85 and back above 110. The week's not over yet. And we got a big catalyst coming up here tomorrow after the Fed basically will announce that they're going to leave rates where they are unchanged. That's what the markets priced in. But what is the new Fed head Kevin Warsh going to say? That's the $600 billion question is what...

Dave Erfle - Precious Metals Rebound: Key Technical Levels, Fed Speculation, and Mining Sector Valuations

Transcript

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Dave Erfle - Precious Metals Rebound: Key Technical Levels, Fed Speculation, and Mining Sector Valuations

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.