"Physical Metal Is Being Valued Differently": Andy Schectman on Why the 2026 Precious Metals Correction Is a Historic Accumulation Window for Canadian Investors

In a candid mid-2026 conversation with Adam Taggart, Miles Franklin CEO Andy Schectman reveals record COMEX deliveries, central bank accumulation at subsidized prices, and the widening gap between paper price manipulation and physical reality painting a picture of a generational buying opportunity in gold, silver, and Canadian mining equities despite the brutal correction.

As gold briefly dipped below $4,000 and silver traded under $60 in late June 2026, the precious metals community found itself in familiar territory: fear, frustration, and second-guessing. For Canadian miners, explorers, and investors who have ridden the sector’s volatility for decades, the moment feels like yet another painful washout in a multi-year bull market.Yet one of the industry’s most experienced voices sees something very different unfolding beneath the surface. In a wide-ranging interview with Adam Taggart of Thoughtful Money, Andy Schectman, CEO of Miles Franklin Precious Metals, delivered a masterclass in separating signal from noise. His message: the paper price is misdirecting, while the physical market tells a far more bullish story. Record deliveries, aggressive central bank buying, and structural supply-demand imbalances suggest the current correction is not the end of the bull market — but its most attractive entry point yet.For readers of Canadian Mining Report, Schectman’s analysis carries special resonance. Canada remains home to some of the world’s premier gold and silver deposits, Tier-1 operators, and high-potential juniors. The disconnect he describes between crashing paper prices and voracious physical demand has direct implications for Canadian-listed companies positioned to benefit when sentiment eventually turns.

The Great Disconnect: Record Deliveries vs. Collapsing Prices

Schectman’s most compelling evidence is found in the COMEX delivery data — numbers that stand in stark contrast to the narrative of collapsing demand.In the first five months of 2026 alone, nearly 34,000 silver contracts — approximately 170 million ounces — have been physically delivered. This already exceeds the full-year total for 2023 and represents a staggering increase over historical norms. For gold, January-to-May deliveries reached roughly 9.9 million ounces, with June alone seeing billions of dollars worth of metal taken off the exchange.“Deliveries don’t automatically drain the vaults or determine price,” Schectman explains, “but when record amounts of gold and silver repeatedly stand for delivery, physical metal is being valued differently than a simple futures contract. The desire to take ownership is the story.”This is not normal futures market activity. Historically, deliveries have averaged less than 1% of contracts issued. What we are witnessing now is unprecedented demand for actual metal at a time when the paper price is being driven lower. Schectman sees this as strong hands — likely including sovereign entities and sophisticated institutions — accumulating at subsidized prices while weak hands and speculators are shaken out. The same pattern is playing out globally. China continues aggressive imports, central banks are buying heavily (with the World Gold Council revealing far higher actual purchases than official figures suggest), and new settlement systems in Hong Kong, Singapore, Dubai, and elsewhere are building the infrastructure for a parallel monetary architecture.

Why the Price Action Feels So Brutal

Schectman does not dismiss the pain investors are feeling. The speed and violence of the reversal — silver collapsing from over $120 to below $60, gold retreating sharply from $5,600 highs — has tested even seasoned participants.He attributes much of the move to classic bank positioning and COMEX mechanics: commercial shorts caught offside during the parabolic phase, amplified by margin hikes and algorithmic selling. The introduction of Kevin Warsh as Fed Chair provided the narrative cover for renewed hawkishness, even as underlying economic weaknesses (housing, commercial real estate, private credit) persist. Yet Schectman views this as tactical rather than structural. “Price is a tool of misdirection,” he argues. Central banks and other large players are using the weakness to accumulate. The same dynamic occurred in prior cycles, but today’s scale of physical demand is different.

Industrial Demand, Supply Realities, and Silver’s Unique Story

Silver’s dual role as both a monetary and industrial metal gives it particular leverage in the current setup. More than half of annual demand comes from industrial applications — solar, EVs, electronics, 5G, semiconductors, and emerging technologies — and that share continues to grow. Supply, meanwhile, faces constraints. Much of the silver ever mined is dispersed in small quantities and economically unrecoverable. Mine production growth is limited, and byproduct silver from base metals operations cannot quickly ramp up to meet surging green energy needs. Schectman sees this imbalance as a core long-term driver. While near-term price sensitivity may cause some demand destruction, the secular tailwinds remain powerful. Canadian silver developers and producers with high-grade assets are particularly well-placed to benefit when the industrial bid reasserts itself.

Implications for Canadian Mining Investors

For the Canadian mining sector, Schectman’s observations translate into a compelling opportunity set:

• Quality Over Speculation: Companies with low all-in sustaining costs, strong treasuries, and de-risked projects stand out in a capital-constrained environment.

• Silver Leverage: Primary silver producers and high-grade silver developers offer asymmetric upside given the metal’s industrial tailwinds and historical volatility.

• Jurisdictional Premium: Canadian assets in stable jurisdictions with responsible ESG practices command attention from global capital when sentiment improves.

• M&A Potential: Stronger players with cash will look to acquire undervalued Canadian assets as the cycle turns.

The current correction has compressed valuations across the board, creating entry points in both senior producers and select juniors that were unavailable during the euphoria phase.

Investment Strategy: Patience and Conviction

Schectman’s advice is clear and consistent with his long career: own physical metal as wealth preservation, not speculation. Use corrections to accumulate high-conviction positions. Understand that timing the exact bottom is nearly impossible — the goal is to position thoughtfully for the multi-year thesis.He acknowledges the emotional toll. “It’s exhausting,” he admits, but emphasizes that the thesis — debt, debasement, de-dollarization trends, and industrial demand — has not changed. The physical market is confirming it even as paper prices suggest otherwise.For Canadian investors, this means maintaining exposure through physical holdings, quality equities, and selective juniors while avoiding over-leveraged or poorly capitalized names.

Risks and the Path Forward

No forecast is certain. Prolonged dollar strength, unexpected economic strength, or further policy surprises could extend the correction. Mining equities carry additional operational, permitting, and execution risks. Yet the combination of record physical demand, central bank accumulation, and structural imbalances suggests the current weakness is more opportunity than warning. As Schectman concludes, the people standing for delivery at these levels “don’t mess around.” They understand where this is ultimately headed. Canadian mining investors would do well to take note.

(This article draws directly from the June 2026 interview between Adam Taggart and Andy Schectman, alongside broader market context. All investments involve risk. Readers should conduct independent due diligence and consult professionals before making financial decisions.)