The gold sector has been on a roller coaster ride lately. After hitting a high of around $1,500 per ounce in early 2019, the price of gold then plummeted all the way down to a three-year low of around $1,170 at the end of August 2019.
Gold bugs have been eagerly watching the sector with anticipation of a potential bottom. Experienced industry veteran David Erfle, founder of the Junior Mining Journal, believes that the gold sector may be reaching a bottom due to what he sees as a “generational opportunity” for investors.
Erfle recently noted that the plunge in the gold price has been driven by a weaker U.S. dollar and a major sell-off in global markets, as investors shifted away from traditional safe havens.
Gold’s recovery may come down to long-term investors and the decisions of the Federal Open Market Committee (FOMC). Erfle believes that the Fed will cut interest rates which can open the door for a gold bull market. “The key right now is to be patient and wait for the right moment to enter the market,” he said.
The Junior Mining Journal is one of the few reliable sources of research into junior gold exploration firms. This type of company often goes overlooked by most investors, but according to Erfle, the secret to success is to identify these companies early — when they’re trading at a discount.
Erfle is a strong believer in the adage of “buy low, sell high” and is encouraging investors to start researching now and position themselves accordingly when the gold sector does inevitably turn around.
Erfle is of the opinion that a real market bottom is not far away, and that now is the time for investors to start looking into the junior gold exploration companies. He believes that a careful review of the underlying fundamentals, combined with a knowledge of the sector, can help investors identify those firms with the strongest underlying value.
In the midst of market uncertainty, Erfle’s message is clear — the gold sector is looking for a bottom and now is the time for investors to act. Much like any other commodity, the timing and the trend of a gold market move is nearly unpredictable. Yet with Erfle’s advice and significant research, investors can rest assured that they are well-positioned to take advantage of any eventual gains in the gold sector.