As stock markets around the world crashed in early January of this year
amid panic selling, investors seeking safety began allocating their
portfolios towards precious metals assets. While prices in almost every other
asset class dropped precipitously, physical gold and silver, as well as the
publicly traded companies that mine them, exploded to the upside. It was
exactly the confirmation those on the sidelines had been looking for, as it
proved that in the heat of crisis and confusion, money would flow to
historical safe haven assets of last resort.
At the time, Keith Neumeyer, the CEO of the world’s top primary
silver producer boldly predicted that silver would rise to $20 by the end of
the year, which would mean a 40% rise. Neumeyer’s prediction came to pass in
half the time and along with it came a 600% increase in the price of shares
for his company First
Majestic Silver, further confirming his assessment that investing in
precious metals producers is a powerful way to leverage rising prices in the physical
metals.
Now Neumeyer, who is also the Chairman of gold-focused mineral bank First Mining
Finance (which has seen a 220% increase this year), has another bold
prediction. With his insider understanding of the resource market and close
relationships with many in the industry, Neumeyer says we should
prepare ourselves for gold to rise to a possible high of $8,000 per ounce,
which would mean at least at least $200 for silver, with the potential to go
significantly higher. Even Neumeyer himself notes in an interview
with Future Money Trends that some who hear his latest
forecast may consider it “far-fetched.” But make no mistake, the supply
fundamentals, increased demand from the tech industry, and the generally panicked
investment environment around the world, suggest Neumeyer is once again right
on target.
We’re starting to see some new buyers come into this market… We’re
seeing some very, very high net worth people come into gold… some huge
institutions that didn’t even touch the metal before are now advocating that
you have to own gold… I listen daily now to new people getting on to
the gold story… I think that’s going to change the demand
dynamics of the metal going forward.
We got down to a level of $1050 [in December of 2015]. If we have the same
type of move that we did before [in 2011] from $250 to $1900, that’s
going to give us $8,000 gold… what does that give you for silver? That’s a
couple hundred dollars or even more. It’s hard to imagine silver prices at
those kind of numbers but it’s not far-fetched to believe that can happen.
(Watch At Youtube)
Neumeyer continues:
We only have a couple companies on the planet that can call themselves
true silver companies and that tells me silver mines are way rarer than
people actually think they are and that’s still not priced into the
market.
We’re mining 9-to-1… So for every ounce of gold we’re mining nine ounces
of silver… and we’re trading somewhere in the low 60-to-1 range and that, to
me, is absolutely ridiculous. I think we will see much, much lower ratios
closer to the ratio where we’re currently mining.
Keeping in mind that Keith Neumeyer is the CEO of the world’s leading
primary silver producer, the fact that they are mining nine ounces of silver
for every ounce of gold, and with the current trading ratio at about 60-to-1,
current prices are completely disconnected from reality.
In essence, what this ratio means is that, at current prices,
either gold needs to drop to $180 per ounce, or silver needs to rise to about
$140.
Given the state of affairs globally, we can safely say that gold isn’t
going to drop that low, which leaves only one real possibility and that is
that silver will continue to rise in coming months and years.
And with silver rising and gold likely to continue doing so, Neumeyer says
everyone should have some physical gold and silver in their portfolios as
insurance for continued central bank currency destruction and economic calamity.
From an investment standpoint, however, he says owning resource mining
stocks will significantly leverage any upside moves in precious metals:
I think it’s the best time to be investing gold mining stocks and silver
mining stocks.
Mining stocks as a whole outperform the metal by a factor of two or three
to one. So, of course you should have physical metal in your
portfolio. I think everyone should have a little bit of silver and a
little bit of gold. But at the same time, if you really want
to make serious money investing in this sector you’ve got to buy good quality
stocks run by good management teams like in the case of First Mining
Finance and of course First Majestic Silver.
We have already seen what happens with physical precious metals prices and
their producers when capital shifts out of broader stocks as it flees
to safety on two occasions this year. Those stock corrections were minor
compared to what’s coming.
Within this context, consider what gold, silver and resource stocks will
do when that next wave of wealth destruction happens.
Click here to learn more about Keith Neumeyer’s gold-focused
mineral bank.
For more interview like the one you just saw visit Future Money Trends.
Also From Keith Neumeyer:
CEO Keith Neumeyer Warns: “There’s Going To Be a Major
Revolt… We’re Going To See Riots”
A Global Financial Reset Is Coming: ‘A Deal Is Being Made
Between All The Central Banks’
This Precious Metals Ratio Signals A Big Move Ahead: “We Will
Ultimately See Triple Digit Silver Prices”
