SILVER Miners 'Printing Cash' - 'Most Undervalued' Play in Precious Metals: Steve Penny

Commodity Culture Jul 10, 2026

Summary

Silver miners earn record profits at $50-$60 silver yet trade as if prices stay lower, the guest's central mispricing argument.

He expects a long range-bound stretch - gold $3,500-$5,000 - before the next major precious metals leg higher.

Uranium priced in gold is unusually cheap after 15 months of underperformance, and he expects it to outpace gold.

Rather than pick stocks, he sells cash-secured puts and prefers large producers or uranium ETFs over developers.

Royalty and streaming names hold margins better than pure-play miners when prices fall, yet trade like them.

TOP: The guest calls Agnico Eagle his favorite gold mining stock, describing it as a "swan, sleep well at night" holding and the best-run gold miner in the world.
He bought Agnico shortly before its latest earnings report and says the results were record earnings, yet the stock fell and he is down roughly 20% on the position as of the July 10, 2026 recording.
He frames the holding over a two-to-five-plus-year horizon and expects a solid return rather than a 10x, conditional on his view that the gold price rises over that span.
Asked about gold miners broadly, he says quality names such as Agnico are good value now, arguing they would still post record profits even if gold fell further, with lower oil prices helping because fuel is the biggest input cost.

The host says he watched Newmont report earnings and saw its stock fall, which led him to buy Agnico Eagle; the guest picks up the same example as evidence of producers raking in cash and being sold off.

The host notes Pan American Silver was down about 20% year to date at the time of the July 2026 recording, with many other silver producers similarly lower and some developers weaker still.

Named by the guest, alongside Royal Gold, as a top-tier royalty and streaming name he finds interesting right now.
He argues royalty and streaming margins are compressed far less by a gold price drop, for example from $5,000 to $4,000, than those of a pure-play mining company.

Top takeaway Referred to in the conversation as the new Fed chair, who the guest says is talking tough now that inflation has ramped up, which he sees as weighing on the metals.
The guest argues Fed policy is directly correlated to the perceived future openness of the Strait of Hormuz, and that further perceived Fed hawkishness tied to strait risk would likely dip precious metals again.

Top takeaway TOP: He argues silver miners are the most undervalued part of the precious metals complex and are printing cash even with silver in the $50s, because he thinks the market is pricing in lower silver prices than his base case.
He expects both metals to stay range-bound longer than most people assume, with gold around $3,500 to $5,000 and silver in the high $50s to low $60s possibly into 2027, and places the big move further out than the market expects.
He says uranium is his most bullish sector on a risk-return basis, noting a uranium-to-gold ratio chart is just beginning a new uptrend after uranium underperformed gold for 15 consecutive months, and that AI data-centre demand is an upside kicker rather than the thesis.
He favours larger caps and ETFs over individual picks, with URNM his single-ticker choice, and accumulates by selling cash-secured puts struck about 20% below the current price on high-quality names in gold and uranium.
He is building cash toward roughly half of his portfolio, sitting at about 20% in an opportunity fund parked in SGOV, on the view that the Fed's response to the next deflationary impulse will drive the next big metals move.

Top takeaway The host cites Cathie Wood buying into the SpaceX IPO, alongside that company's heavy losses and roughly 100x price-to-sales valuation, as an example of investor attention going to high-multiple names rather than precious metals.

Top takeaway TOP: He argues the next big move in metals will be retail-driven, with the retail public buying into a price rise, and notes that during the last run-up to $120 the shops were packed with people trying to sell silver instead.
He says he bought Agnico Eagle shortly before earnings after watching Newmont report and see its stock fall, and offers it as a proxy for producers reporting record results and being sold off.
He says he built a fairly large oil and gas position before the Strait of Hormuz closure and the Iran war started, but is now sitting on the sidelines in energy because a single presidential post can move the oil market either way.
He invokes the line that more people lose money waiting for a correction than in the correction itself, and argues dry powder matters in what he calls the most fragile overall market environment in a century.