Make sure the company you choose to invest in can weather this out: David Erfle
David Erfle with Junior Mining Junky is picking carefully during the recent gold market gyrations.
Erfle spoke to Kitco yesterday. In the past 60 days spot gold has swung from a low of $1,452 oz to a high of $1,700 oz as markets respond to the latest COVID-19 news.
When choosing what company to invest in, Erfle said cash is key. The business should be well funded.
"I've got core positions in royalty companies; growth-oriented, low cost producers and some development plays that have a lot of cash," said Erfle during a video interview.
"It's kinda like 2008, but it's not really because we've got this pandemic on top of it. Nobody knows when it's going to get under control, and the economy can get moving."
Erfle said he has to see the market stabilize before adding to his positions.