Keith Neumeyer: The Silver Breakout is Here
Collin welcomes returning guest Keith Neumeyer to the program to discuss all-things silver. Keith is the President and CEO of First Majestic Silver Corp.
Keith is seeing an increase in inquiries from big institutional funds regarding silver. It seems the high silver to gold ratio has caught the attention of many investors.
He believes everything should trade on real supply-demand fundamentals. As an industry, silver is mined at an 8 to 1 ratio with gold. This ratio should correct at some point much lower, perhaps as little as 25 to 1. Keith expects that we will see triple-digit silver.
Silver is a precious metal, an industrial metal, but often not considered it is also a strategic metal. Everything we do as a human race requires silver from transportation to electronics, and Keith says, “We’re not going to produce enough silver to meet the demands of the world.”
Time Stamp References:
1:00 – Silver ratio waking up big institutions.
2:20 – Inflation, lower interest rates, and gold.
3:50 – Outlook for silver and the silver-gold ratio.
5:25 – Silver’s demand profile.
8:40 – Comparing historical markets.
12:15 – Mining sector cyclicality and greed.
15:00 – Why his focus is on the commodity sector.
Talking Points From This Episode
• Big institution money takes notice.
• Negative interest rates are bullish for silver and gold.
• Expectations for triple-digit silver.
• Silver as a strategic metal.
• Timing the mining sector.
Keith Neumeyer is President & CEO of First Majestic Silver Corp. Mr. Neumeyer has worked in the investment community since 1984. He began his career at some Canadian national brokerage firms. Mr. Neumeyer moved on to work with several publically traded companies in the resource and high technology sectors. Mr. Neumeyer has been the President and Chief Executive Officer of First Silver Reserve Inc. since June 19, 2006. His roles have included senior management positions and directorships responsible in areas of finance, business development, strategic planning, and corporate restructuring.
Mr. Neumeyer was the original and founding President of First Quantum Minerals Ltd. (T-FM) as well as First Majestic Silver in 2002 and First Mining Finance in 2015. He has also listed several companies on the Toronto Stock Exchange and has extensive experience dealing with the financial, regulatory, legal, and accounting issues relevant to the investment community. Keith also won the E&Y Entrepreneur of the Year Award in 2011 for the Metals & Mining category.