Let’s say you start a company that is building widgets.
Your company starts out building this one type of widget and it is highly
successful. Then you add a series of other widgets to your production. Your
company is known for your first widget and your company takes the name that
reflects this widget, we’ll call it “silver”. As your company matures, the
other widgets begin taking the lead as far as volume of sales, profits
produced and products manufactured. Your company is known as “silver”, but
the other widgets are what are actually driving the company. Is your company
still a “silver” company or has it morphed into something else?
This is one of the more interesting points that Keith
Neumeyer, CEO, First Majestic Silver and Chairman, First
Mining Finance, discusses during the interview
below. The situation is this – if your mining company starts out producing
70% silver but as your mine is processing less and less silver while
increasing the production of lead, zinc and copper how can it still be
considered a silver mining operation? If your silver production goes from 70%
to 20%, that tells us a lot about what is happening with the silver mining
production. It may be isolated to a handful of mines, but, in my opinion, it
is reflective of the silver mining industry as a whole.
Silver is a strategic asset. Our world functions in the
way it does because of silver. The windows in your office building are coated
with silver, all the technology, including the computer you are reading this
on, functions because of silver. This is to say nothing of solar panels,
biocides and the hundreds of other uses that make our world a more
comfortable place. It also makes it a much more dangerous place as all the
bombs being used around the world include a significant amount of silver in
each of these deadly devices. Without silver, our world would look and
function much differently than it does today.
The significance of all this can not be over-stated.
Silver is much more rare than people can even begin to imagine.
This brings us to the reality of the current silver
“market”. Silver currently trades somewhere around 70 to 1 when compared to
gold. The production of silver, naturally out of the ground, is mined at 9 to
1. The natural mined ratio has been used as the standard of value for these
two metals for thousands of years – not decades, not a couple of hundred
years, but somewhere around 4,000 years. What this means is for every 1 ounce
of gold that is mined there are only 9 ounces of silver mined; but silver,
currently, trades at a ratio of close to 70 ounces of silver to 1 ounce of
gold! Based on 4,000 years of history does something sound out balance to
you?
Mr. Neumeyer has a lot more to share with you, so, please
give this a good listen. If you like being associated with winners, Mr.
Neumeyer is someone you want to be associated with. He has already built two
different billion dollar companies and is currently building what very well
could be his third billion dollar company. Confiscation, the Federal Reserve
and the current state of our economy are all discussed during this 30 minute
interview.
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Rory Hall, Editor-in-Chief of The Daily Coin, has
written over 700 articles and produced more than 200 videos about the
precious metals market, economic and monetary policies as well as
geopolitical events since 1987. His articles have been published by
Zerohedge, SHTFPlan, Sprott Money, GoldSilver and Silver Doctors,
SGTReport, just to name a few. Rory has contributed daily to SGTReport
since 2012. He has interviewed experts such as Dr. Paul Craig Roberts, Dr.
Marc Faber, Eric Sprott, Gerald Celente and Peter Schiff, to name but a
few. Visit The Daily Coin website and The Daily Coin
YouTube channels to enjoy original and some of the best economic, precious
metals, geopolitical and preparedness news from around the world.
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