John Feneck: Silver's Bull Market Isn't Over
VRIC Media Sep 6, 2026 29:15
Summary
Physical silver is Feneck's largest position (~11.5%) on a sub-$17 cost basis; he adds on dips in the $50-$55 range.
Silver developers look compelling: production AISC (All-In Sustaining Cost — what it really costs per ounce) of $25-$30 vs silver near $70.
Mining equities are starting to move three-to-one with metals, a leverage regime that returned in late July after years of one-to-one.
Tungsten, not rare earths, is the more actionable critical-mineral play — China controls ~81% of supply and there's no futures market.
He reads the Fed as more market-friendly than the headlines, noting only ~50bps of cuts are priced in by late next July.
Key points on First Majestic Silver
- John calls First Majestic one of the few pure silver producers investors can buy, contrasting it with the gold-forward silver-byproduct producers that dominate the space.
- Feneck Consulting holds First Majestic indirectly through silver and gold ETFs (GDX, GDXJ, SIL, SILJ, SLVP) rather than as a direct position, as John describes on the show.
Darrell Thomas's takeaways
- Top takeaway Darrell argues silver is a critical mineral with constrained supply, noting there are not a lot of pure silver companies investors can buy globally.
- He frames an M&A opportunity, arguing that bigger miners and producers face a replacement-ounces problem while silver is in a structural deficit and that this sets up takeovers of developers and explorers.
- He draws a bullish parallel to the 2011-2012 gold rally, arguing the current macro backdrop of rising debt, deficits and M2 money-supply growth is more supportive than it was then, even without a price target.
- He highlights a potential sector rotation, pointing out that tech and AI make up 35-40% of the S&P while all mining stocks combined are only 0.1-0.2% of the investable global universe, and suggests a small reallocation would meaningfully flow into miners.