Keith Neumeyer: The Pricing System for Gold and Silver is Broken

• Palisades Gold Radio
  Tom welcomes back Keith Neumeyer, President & CEO of First Majestic Silver Corp. Keith explains why the world needs enormous amounts of metals for electrification and carbon objectives. He says, “We will never be fully off oil and gas but we can reduce it given time.” He is a fan of hydrogen and nuclear solutions for energy. To subscribe to our newsletter and get notified of new shows, please visit http://palisadesradio.ca
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  The mining industry continues to be held back and demonized. Mining methods are gradually improving. It takes time however to implement and build solutions in a capital-starved market. The creation of new mines takes years and sometimes decades. Tech companies are too focused on the short-term and don’t understand the complexity of resource development. The top five high tech companies have a market cap of five trillion. While the top fifty mining companies are worth a fraction of that industry. There are no real substitutes for silver. Companies like Dupont have tried with limited success. By 2022 the world will need 140 million ounces of silver just for solar panels. This is a 30-40 percent YOY increase. Keith discusses silver recycling and why supplies of similar seem limited. It will require considerably higher prices to recover silver and bring these metals to refiners and recyclers.
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  The recycling business is quite difficult and metals are hard to recover from e-waste. He is concerned about the pricing structures around metal and believes the Comex needs to go away. First Majestic’s approach is to sell bars directly to industry and thus often bypass the futures market. The mining sector has been undereducated for some time and Latin America is now filling in the gap for talent in engineering and mining. The mining sector is having a harder time as the population moves to greener and increasingly socialist mindsets. The mining sector will have to be more aggressive if humanity is going to achieve its objectives. Time Stamp References:
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  0:00 – Introduction
  0:33 – Germany Presentation
  2:12 – Tech Sector & Mining
  5:07 – A.I. & Corporations
  6:52 – Silver Substitutes
  10:27 – Silver Recycling
  13:10 – Metal Pricing Concerns
  14:47 – Futures Replacements
  16:33 – First Majestic Bars
  20:44 – Withholding Silver
  22:50 – Industry & Education
  25:02 – Mainstream Momentum
  26:34 – Exploration & Price
  29:37 – Institutions & Gold
  32:25 – Risk & Diversification
  34:57 – Finding Opportunities
  36:35 – Chile & Mexico
  37:33 – Jerrit Canyon Plans
  40:07 – Nevada Plays
  41:58 – Company Considerations
  43:58 – Exiting Positions
  47:28 – Layering Positions
  48:35 – Concluding Thoughts
  49:30 – Wrap Up
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  Talking Points From This Episode
  – The coming demand picture for metals due to electrification and green energy.
  – Recycling and the limited alternatives to silver.
  – Types of silver bars and selling directly to industry.
  – Managing jurisdictional risks and future projects.

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