15 Sep Silver 8 Times Cheaper Than It Should Be
Keith Neumeyer is on the board of several major mining companies. He funded two billion-dollar companies of his own. One of them is First Quantum Minerals, a leading copper producer. The other, First Majestic Silver, is one of the world’s largest copper miners. As one of the world’s most renowned
precious metals experts, his recent comments at the Sprott Natural Resource Symposium in Vancouver should be taken very seriously by all investors. Here is what he said.
“Silver is a screaming buy right now due to the following very specific conditions:
- The gold/silver ration is much too high. Historically this has always led to a huge jump in the silver price. The ratio should be near to 9/1, meaning 9 ounces of silver should be equal to one ounce of gold. Today it is a screaming 75/1.
One can clearly see how this ration corrected in the past.
You see, there are about 17 ounces of silver in the Earth’s crust for every one ounce of gold. Only about half of that silver (or about 8.5 ounces) is recoverable. Modern mining companies dig up about nine ounces of silver for every ounce of gold.
- The silver market is in a deficit. 2016 was the fourth straight year that demand outstripped supply. The current shortfall is about 150 mt (metric tons).
- Silver production is falling. In my previous articles, I have already stated the falling production of the main silver producing countries like Mexico, Peru and Chile.
- Industrial consumption is increasing. In previous articles I have also pointed out the huge surge in industrial demand from solar panels medical applications, electronics and lately, Volkswagen are now using silver for their windscreen defrosting instead of the old copper wires. One can assume all auto manufacturers are going to go this route which will boost the industrial demand for silver hugely. In fact, it is estimated that the solar industry would require 1.3 billion ounces of silver if just 20% of U.S. households put solar panels on their roofs.
We are clearly on the verge of seeing a huge jump in the demand for silver.
I urge all investors to make sure you have a good supply of physical silver in your portfolio. I do expect huge returns over the next 12 months from silver.
Call or email me today to stock up on silver bars or silver coins. When the prices start running we will not be able to get silver as refineries will run out of stock as happened in 2008.