Dave Erfle - Junior Gold and Silver Stocks: Snapback Rally, Valuation Gaps, and Strategic M&A

Dave Erfle, Editor of Junior Miner Junky, returns to share his outlook on the quick rebound in gold and silver stocks. After a sharp but short-lived correction, quality mining equities have staged a swift and powerful comeback, outpacing major indices and defying the broader market weakness.

We start by discussing the recent volatility and investor psychology around gold equities. Dave explains why holding through the shakeout rewarded conviction and how the GDX and GDXJ bounced off key moving averages.

Dave outlines how this rebound was driven by technical setups and extreme undervaluation relative to metal prices, especially gold, which remains close to record highs. We also examine silver’s massive reversal and how thin positioning created the perfect setup for a rally.

The conversation then shifts to positioning and sector rotation, with Dave noting how capital is now flowing into undervalued juniors. He shares his approach to managing risk and capital rotation, explaining how he evaluates which juniors have upside and which are weighed down by dilution or permitting risk.

We also explore standout examples of strategic M&A. Discovery Silver's acquisition of the Porcupine complex is cited as a transformational shift from optionality to production. Similarly, Endeavour Silver’s deal in Peru and upcoming Terronera production growth highlights the transformation in select stocks. Dave emphasizes the importance of looking ahead and how valuations are driven by forward expectations, not past results.

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