Nothing ventured, nothing gained!​​


David Erfle is a self-taught mining sector investor. He stumbled upon the mining sector 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 sector 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. He personally survived two bear markets, witnessed incredible sector changes and had to alter his investment philosophy numerous times in order to adapt to changing market conditions. 






I primarily invest into the following type of junior and mid-tier mining companies:

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

45% GAIN

99% GAIN

GDXJ gain - 62%
GDX gain - 48%

GDXJ gain - 8%
GDX gain - 11%

More details here

More details here




- 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 miner 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

- This is an extremely risky business so diversification 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

-Risk management is the key to my success. If a stock becomes a negative 20% position it is immediately sold with very few exceptions

- 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