Steve Penny, founder of SilverChartist.com, shared his insights on precious metals investing during a recent Money Metals podcast. Penny, a former Air Force rescue pilot, transitioned to financial analysis after the 2007-2008 financial crisis, driven by his interest in central banking and geopolitics. He advocates for a diversified approach combining physical metals, mining stocks, and options trading, emphasizing risk management through distinct investment buckets.
Penny compared silver’s recent performance to the 1970s bull market, noting a 480% gain in the 27 months leading up to January’s peak. He anticipates a potential consolidation phase before another major advance, similar to the 1970s pattern. He also highlighted the challenges of sustaining high interest rates due to the U.S. national debt, which stands near $40 trillion.
On gold, Penny previously assigned a 75% to 80% chance that $3,900 would hold as a technical support level, though that probability has since fallen. He observed Chinese buyers supporting gold prices during dips and noted the potential for market manipulation to create buying opportunities. Penny’s long-term outlook suggests gold could reach $15,000 per ounce, with silver near $300 per ounce, based on historical averages.
Penny’s strategy includes holding physical metals as long-term insurance, top-tier mining stocks for volatility, and a separate trading bucket for short-term moves. He also favors American Silver Eagles for dollar-cost averaging when premiums are low, citing their recognition and potential for rising premiums.