In this Daily Editorial, we welcome Dave Erfle, Founder and Editor of the Junior Miner Junky, to discuss the recent sharp breakdown across the precious metals sector. While short- and medium-term charts look technically weak, Dave explains why this correction might actually be a massive buying opportunity rather than the start of a prolonged bear market. Key Discussion Points: The Psychology of False Breakdowns: Why recent technical drops below key moving averages historically signal a powerful move in the opposite direction. Rock-Bottom Sentiment vs. Record Profits: An analysis of the Bullish Miners Percentage Index hitting zero despite producers coming off their most profitable quarter in history. Historical Analogs from 2008 to 2024: How past market corrections parallel today’s action and what they tell us about the ultimate bottom. Decreasing Margins vs. Balance Sheet Strength: A direct look at how major producers and explorers are equipped to withstand lower gold prices without dilution risk. The Impending Rotation from General Equities: Why deeply undervalued mining stocks are perfectly positioned to capture capital as overextended tech sectors cool down. 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 - Are The Precious Metals In A Bear Market?

The KE Report

# Full Transcript

**Podcast:** The KE Report

## Transcript

Hey everyone, welcome to the KE Report in a daily editorial on Tuesday, June 9th. We are chatting with Dave Erfle, Dave is the founder and editor of the Junior Miner Junkie. Dave, let's focus on the precious metals here because, look, I think all of our listeners know that the precious metals broke down at the tail end of last week. We're getting a follow through further move down today and it's gold, silver, it's the equities. The problem being that the short term charts looked weak.

We were outlining that for the last couple of months and now even the medium term, the weekly charts are starting to look weak as some key moving averages are breaking down. We chatted with you last week, you were pointing to a couple of technical patterns that we all agreed needed to break either higher or lower. Unfortunately, they broke lower. So for the bullish narrative, does that change your outlook at all now that we have had this breakdown?

Not really. I mean, I'm getting more excited because these prices are at levels that I didn't think I'd see again on a lot of these stocks.

Fortunately for myself and my subscribers, we took a lot of profit during the parabolic spike earlier in the year. But I redeployed some investment capital that came from that selling and finished up that redeployment a couple of weeks ago because I expected the breakout to be to the upside. But now that it's to the downside. But now that it's to the downside, I see it as possibly a false breakdown for the breakout.

When you have these false breakdowns, false breakouts, they tend to be followed by above average moves in the opposite direction, especially in this sector. I mean, if we take a look at sentiment right now, it's at rock bottom. The bullish miners percentage index hit zero today.

And it hasn't hit zero since late 2015 after the GDX had gone down 85% and shook everybody out. I mean, that was an incredible, incredible move lower that just got everybody out of the sector. And then myself included, I was buying these stocks that were at these incredible deals.

And the sector created a bottom for like six months that everybody thought that, OK, this is the bottom and it's going to go up from here. We had tax loss selling at the end of the year, which shook out even more. But the GDX and GDXJ were creating this bottom and it was it was a pretty strong bottom, like I said, a six month bottom. But then the second week of January, this was around 16, 15, 16.

The second week of January, we had a sharp move below that bottom and it shook it shook a lot of players out that were accumulating. I thought, OK, here we go. Gold's going to go below a thousand. The miners are going to go even lower. But it was it was a false breakout in the opposite direction. So so we had a false move down. And then once it reversed.

The miners had gone up 250 percent in six months and everybody started to chase. And the most recent exampl...

Dave Erfle - Are The Precious Metals In A Bear Market?

Transcript

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Dave Erfle - Are The Precious Metals In A Bear Market?

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.