This Precious Metals Ratio Signals A Big Move Ahead: “We Will Ultimately See Triple Digit Silver Prices”

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Top Tier Gear USA

silver-stack

Earlier this year, as investors around the world panicked and stock markets crashed across the board, one asset class held strong and actually gained. It was, by all accounts, a capital flow panic out of broader stocks and into precious metals. As a safe haven, precious metals like gold and silver have long been sought by a panicked populace during times of crisis and given the current economic and monetary debacle created by central banks, we can safely forecast a continued rise over coming years for this reason alone.

But according to Keith Neumeyer, there is another key reason for why we could see explosive prices, specifically in silver, because major shortages loom and current valuations for the precious metal are nowhere near where they should be. Given his experience and current position as the CEO of billion-dollar mining company First Majestic Silver and Chairman of mineral bank First Mining Finance, there is no better source for understanding what’s happening in silver markets today and where we can expect them to go in the mid to long-term.

As Neumeyer notes in his latest interview with The Daily Coin, gold is currently selling for about 75 times the price of an ounce of silver, but from a mining and production standpoint, the physical ratio is about 10-to-1. Coupled with growing global supply shortages for this essential metal, that means prices for silver should be trading significantly higher than they are today:

We are currently trading about 75-to-1 thereabouts and the mining ratio is about 10-to-1… so for every ounce of gold we’re mining 10 ounces of silver… so that tells you it’s way rarer than the market understands… I think that as gold goes higher over the next couple years, the ratio is going to collapse on a percentage basis… and that’s why I think we will ultimately see triple-digit silver.

Watch the Full Interview via The Daily Coin:


(Watch At Youtube)

Neumeyer goes on to note that the silver shortage is already becoming apparent in electronics markets, citing a recent discussion with a large electronics company that was having problems acquiring the precious metal for components in their products:

Markets go through periods of time where they’re imperfect, but they do perfect themselves over time. What I mean by that is eventually supply and demand will take over, particularly in the silver space where it’s such a tight market… We have seen in 2015, lower production across the board… and silver is a lot more rare than most people actually think it is…

We were contacted by a a big electronics manufacturing company… a manufacturer of televisions and cell phones looking for silver supply… In the thirteen year history of First Majestic I have never been contacted directly by an electronics manufacturer for supply of silver… so that’s telling me there is something different going on in the market place… 

What’s happening is that mine production slow-downs and global shortages are finally catching up with the market and electronics companies are having difficulty sourcing silver. This has been seen in other sectors as well, including the U.S. Mint and Canadian Royal Mint, both of which were forced to suspend sales of silver coins and bars respectively in 2015 as a result of high demand and lack of supply.

These are key indicators that industries dependent on silver are already running into problems acquiring the supplies needed to continue operations.

And while prices have yet to catch up, the trend is clear, especially considering the recent admission by Deutsche Bank that it has been complicit in the suppression of precious metals prices and that other large financial institutions are in on the scheme.

Given the dire state of the global economy, failing monetary policies from central banks around the world, supply-demand fundamentals, and the fact that price suppression schemes have now been exposed, one can’t help but consider that the current gold-to-silver ratio will, as Neumeyer suggests, collapse to its natural state in the near future.

That can only mean one thing: higher silver prices, and perhaps as the Chairman of First Mining Finance notes, triple digit prices that will see massive capital flows into silver related assets.

To learn more about Keith Neumeyer and what his company First Mining Finance is doing to take advantage of the coming boom in silver click here.

For more informative financial interviews like the one you just watched visit The Daily Coin

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Contributed by Mac Slavo of www.SHTFplan.com.

When it hits the fan, don’t say we didn’t warn you. Mac Slavo is the editor of SHTFplan.com, a resource hub for alternative news, contrarian commentary and strategies that you can take to protect yourself from the coming global paradigm shift.

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  • Erin Anderson

    Pan American Silver is the best mining stock to buy.

    • gdaym8

      The actual silver is an even better buy. “If you aren’t holding it, you don’t own it.”

  • dennis cheever

    In a free market system you would not have this countries businesses be monopolized like they are. By the government no less. Monopoly is illegal in the USA, but not Obama’s LAWS.

  • way2inform

    So what is my best investment? Let’s say i have an extra 500$ a month to invest in silver and i want to do so each month for the next year. What is the best way to capitalize?

    • Mr Larry

      Stay away from anyone who wants to answer this question. That will make sure you keep your 500 bucks a month. Buy Mason jars lots of them and put everything you own into them including extra cash. I’ll bet your better off in 5 years and what to spend your money on might become clearer. Best answer to your question is the answer you’ll come up with.

      • Of course, you’ll also get to watch the value of your 500 bucks drop as the price of gold and silver head for the sky.

    • Frank

      Despite what Mr. Larry says – Your interest in diversifying your assets is a smart thing to do. Keep some Cash, in a Mason jar or whatever – inside of a metal coffee can, but also consider buying some physical Silver, preferably in currency/coin form like Silver Eagles (not Silver stocks or Shares – “If you can’t hold it in your hand, you don’t own it.”). For example, with your “excess” $500, I would spend about $300 and buy some 1-ounce Silver Eagles ($17.30/oz as I write this) and either stash the rest or buy other Durable Goods. By “durable goods” I mean shelf-stable or canned foods, guns and ammo, tools, garden supplies, food preservation supplies (Mason jars, lids..) etc. – stuff that you will eventually get value out of or will be able to barter/trade. Buying Silver should be considered a long-term investment method of either preserving or building wealth, depending on your outlook on what the future holds. Also, buy having our own Silver stash, it is beyond the gov’s reach.

      If Hillary is elected, I’m betting that we’ll see the collapse of the dollar as the US increases and eventually defaults on its debt, outrageous increases in taxes (leading to tax avoidance and Black markets), hyper-inflation, and the values of precious metals explode while the cities burn – but that’s just my opinion.

      • only addition for consideration is non-powered hand tools for the pending grid malfunctions on the horizon….

        • My 18 volt power drill’s batteries have never been charged from the power grid because I haven’t been on it since the mid 80’s. The first accessory I bought for it was a 12VDC charger.

    • a married couple at Ft. Benning bought an ounce of gold for the four years I was in the unit…..to bad I was not as mature as they….no doubt they have done very well…….when our house gets built….
      I will hold silver until it nears the top then sell and pay off any debts still outstanding……if no debts…I will hold on until I die and pass it on to our children……

    • Find yourself a trustworthy coin seller and buy the cheapest year of American Eagles. They are frequently cheaper by the treasury tube, plus you get to keep the tube.

  • Mr Larry

    Best part is this a-hole CEO will also tell you his company’s cost to get an ounce of silver out the ground is actually around 7 dollars. Awesome. Look it up if you don’t believe it. This out of the ground cost should be posted at all metal dealers shops. You should also be required to answer this out of the ground cost question before your allowed to buy any more then 1 ounce at a time.

    • Mildred Yocum

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      • ahuxley

        That’s nothing.
        My room mate Jennifer made $756 in one minute by enlisting your room mate Lori in the Dildo of the Month Club…

    • Jakob

      Out of the ground for what the company is paying for in mining/processing cost and what is trading for on the market is two different things…..silver is trading around 17.41 Spot Price

      • Mr Larry

        ok, so what it cost a company to make a product and what that product ends up costing are two different things. thank you.
        comparing those two different things now. remembering always that we are talking about to different things mind you.
        this one looks good $17.41 / $7 = 248%
        what is this one? $49.99 / $7 = 714%
        that first thing is up to something!

        • Jakob

          This isn’t their asking price, Like the mining company…….This is that trading price on the stock market…… like you brought a sack of silver from say Vietnam or India it would value at the trading price…I’m out, Be Well

          • Mr Larry

            yes, two different things, I got this already. one is their cost to make it, all in. but this is not the cost that they want to sell it for. they want to make money. the cost that they could sell it for the other day, that you were quoting was $17.41. two different things got it. thanks again.

            and I’m sorry I quoted the wrong price before. I’ve just checked the web site again and its $8.77 per ounce now.

            http://www.firstmajestic.com/assets/docs/fact-sheet-november-16-2015.pdf

            sorry some of you may have this site bookmarked already. anyone who has bought silver at whatever price in the last few decades has read up on this company’s (the largest silver producer in the world) performance or visited this web site for some basic facts about silver before that purchase. to not do at least that would be crazy. no?

      • You should go look at the spot price of silver on April 28th, 2011.

    • Which is largely academic since silver is usually a side chain product rather than the primary goal in the mining process, making it difficult to assign a cost per ounce.

  • Which mining company did you work for?