Silver miners are highly profitable and mispriced
The bull case argued for silver miners is that they are printing cash at current silver prices, yet the market is mispricing them by discounting lower future metal prices.
The argument
The guest argued that silver miners represent the most undervalued component of the precious metals complex. He noted that even if silver prices simply remain range-bound in the $50 to $60 range, these producers will continue to generate massive profits that are not yet reflected in their stock valuations.
The thesis, stress-tested
✓ What validates it
- ✓Silver prices sustaining or consolidating in the $50-$60 range
- ✓Stronger-than-expected earnings reports from major silver producers
▸ Risks discussed
- ▸A final flush lower in silver prices down to the low $50s
- ▸Broad market deflationary impulses dragging down precious metals temporarily
Hear it yourself
"Silver miners are massively undervalued at these levels according to my guest, Steve Penny. And he stresses that with silver in the 50 to $60 range, many of these producers are printing cash and being completely mispriced by the market at large, a a paradigm he expects to change up ahead."
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