Dave Erfle - Making Sense Of Today’s Big Gold & Silver Correction

In this Daily Editorial, we welcome back Dave Erfle, Founder and Editor of The Junior Miner Junky, for his thoughts on the gold and silver selloff. After massive rallies that pushed gold to nearly $4,400/oz and silver up $3.50/oz, both metals are now retracing hard, leaving investors questioning whether this is an interim top or something more significant.

Dave breaks down the technical and psychological dynamics driving the pullback, including:

• Gold and Silver Volatility - CME margin hikes triggered a massive washout following weeks of overextension, with gold reversing nearly $300 from its peak.
  • Miners’ Correction - GDX and GDXJ up 65–75% since August now face a natural 20–25% retracement, with key support levels at 67 (GDX) and 85 (GDXJ).
  • Chart and Cycle Patterns - After achieving long-term “cup-and-handle” breakout targets, gold may consolidate between $3,500–$4,000 before resuming its uptrend.
  • Earnings Season Setup - Despite volatility, Q3 earnings for producers like Newmont (NEM) should showcase record margins thanks to sustained high gold and silver prices.
  • Sector Leadership and Accumulation - Miners and silver often lead both tops and bottoms; investors should prepare to accumulate “fishing lines” after “rhino horn” spikes.
  • M&A Momentum - IAMGOLD’s (IMG.TO) twin acquisitions underscore growing consolidation interest in large, high-quality land packages across Tier-1 jurisdictions.

 

Click here to visit the Junior Miner Junky website to learn more about Dave’s investment letter. 

 

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