Andean Precious Metals: The Lowest Risk Stock In My Silver Miner Basket
Silver Breaking Out & Breaking Down The Risk/Reward For Andean Precious Metals
Summary
Silver has recently made a push to all time highs just below $60/ounce, but the silver miners have diverged and have a chance to play catch up.
Andean Precious Metals is a lower risk way to get exposure to precious metals, and the valuation is still very cheap, even after the run it has had this year.
They have a silver oxide processing plant in Bolivia and a gold mine in California, where they are looking to extend the mine life.
The balance sheet is very strong, and insiders own a huge chunk of the shares outstanding.
If you’re expecting higher gold and silver prices in 2026, Andean is going to generate a ton of cash, and I wouldn’t be surprised if shares double again by the end of next year.
I’m sure that some of you have been paying attention to what has been going on with silver lately, and I don’t think the recent move in silver is done. There are other people that are far more qualified to comment on the plumbing of gold and silver markets, but it is interesting to see some of the recent news. You have Black Friday COMEX shutdowns, Shanghai silver trading above 60, and rumors that Paul Tudor Jones buying $1.9B of silver futures. With all of that, it’s easy to look at silver as being overcooked short term, but if we do start to issues with physical delivery and paper markets, silver’s run is far from over. Even if we do take a pause here, I think the setup is very attractive looking ahead to 2026.
I could pontificate about the gold to silver ratio, or why I think it’s probably going lower in 2026, but I think gold and silver are both in durable bull markets. I think we could see gold to silver ratio hit 60 (not tomorrow, but at some point in the next couple years), and I don’t think that will happen with gold sitting in the low-4,000 range. I will try to avoid the hyperbolic price targets (silver to $100 an ounce by the end of Q1 2026, etc.), but I wouldn’t be surprised at all if silver grinds higher between now and the end of 2026. I have read and listened to a couple pieces in the last week, but a couple stood out. This recent piece on the gold to silver ratio will be an interesting read for anyone that wants some historical context on where we are today, and Vince Lanci’s video on the recent price action in silver is also worth a listen.
I have been adding a basket of silver miners, along with some smaller copper miners, and I will be writing up those ideas as quickly as possible. To be clear, I think investors should own physical silver before buying miners (especially some of the juniors), but I think there is a disconnect right now between the price of silver and the price of some of the silver miners. I have owned physical silver for a while now, and I think the miners are worth a look here. Despite silver’s run from the low-50s to just under $60 an ounce, many of the silver miners haven’t participated in the rally to the same degree. A lot of the silver miners seem to be pricing in a return to $30 or $40 an ounce, and I think there is an opportunity in some of the miners unless you expect silver to collapse in 2026.
Andean Precious Metals Overview
That brings me to the largest component of my silver miner basket, and what I think is one of the lowest risk opportunities among the silver miners. Andean Precious Metals (APM.TO or ANPMF on the US OTC) is a precious metals company with assets in California and Bolivia. They are producing gold and silver today, but they are actively looking to expand their operations. The balance sheet is rock solid, insiders are very aligned with other investors, and the stock is very cheap, especially if you are expecting higher average silver prices in 2026 like I am.
Their Bolivia operations remind me a little bit of Amerigo Resources, which processes the copper tailings from the Codelco mine in Chile. The difference is that they aren’t reliant on one mine, and instead take their silver oxide feedstock from multiple nearby silver mines. I think it makes sense to take a basket approach when it comes to the silver miners, and Andean is the lowest risk piece of my basket. Unless you think gold is going back to $3,000 and silver is going back to $30 or $40 an ounce and staying there, I think Andean Precious Metals has plenty of upside from here, even after the run it has had.