David Erfle is a self-taught mining sector investor. He stumbled upon the mining space in 2003 as he was looking to invest into a growing sector of the market. After researching the gains made from the 2001 bottom in the tiny gold and silver complex, he became fascinated with this niche market. So much so that in 2005 he decided to sell his home and invest the entire proceeds from the sale into junior mining companies. When his account had tripled by September, 2007, he decided to quit his job as the Telecommunications Equipment Buyer at UCLA and make investing in this sector his full-time job. David founded the Junior Miner Junky subscription-based newsletter in April, 2017 and writes a weekly column for precious metals news service Kitco.com, whose website attracts nearly a million visits every day.




I primarily invest into the following type of junior resource companies:

- Growth Oriented Producers (low risk)
- Developers/Explorers (medium risk)
- Early stage exploration companies (high risk)
- I do not invest into major mining

120% gain since 2016

2016 - Gain 99%
2017 - Gain 45%
2018 - Loss 19%




- I do extensive reseach on each company before I purchase it, as well as while I own it

- I use basic technical analysis and valuation calculations before pinpointing  an entry point

- Some of the micro-cap juniors I invest in are very illiquid and my entry positions can range from $12,000 to $20,000

- Timing is very important, as there have been many instances where I watched a company for years before making an investment

- I do not like to hold more than 30 junior positions as it becomes too difficult to keep track of any more than this number

-I also like to limit company specific speculation to no more than 4% of my investment capital into any individual company

- The precious metals complex is extremely risky so diversification and risk management is of the utmost importance

- It is far more rewarding to let my profits run at this point in the cycle as I pay less capital gains tax for positions sold more than one year from the purchase date being a US citizen

- I occasionally sell a position if I feel it has run too far ahead of the sector and buy it back later if it becomes over-sold

- I “switch-out” weaker positions with short term capital gains, or even a small loss, for a better speculation play

- In order to minimize risk, if a position has lost more than 20%, I usually sell it unless it is a micro-cap or I feel the sector is forming a major bottom.

- I may decide to keep a position that has fallen 20% from my purchase price, or even add to the position, based on the circumstance of the sell-off 

​- I may sell a position out of personal necessity, for example, in order to replenish my living expense bank account