Keith Neumeyer: The Numbers Sound Crazy, but I Predict $8,000 Gold & $130 Silver
Keith says the reason the resource markets are lagging is due to institutions not entering the metal market. Until there is a crack in the major markets, we will not see institutional money flow into the mining equities. The market is quite similar to the year 2000 when it was flat and then took off. History is repeating itself. We need some sort of correction and sane-ness to enter the market. He feels the coming bull market will be quite impressive.
He thinks the mining sector over the next decade will become a much more efficient business. Miners will be in a rising metal price environment. He’s not concerned about being wrong in the short term to be right in the long run. When the market turns, it will turn quickly.
The current silver price is almost a joke. We’ve seen lead, zinc, nickel, lithium, and cobalt make significant price rises but gold and silver remain flat. Silver is ignored as a cheap gold substitute, and that is a wrong assumption. Silver is a strategic metal needed for all sorts of applications, and modern society would not function without it. It’s shocking that this hasn’t been noticed by more people as a result production continues to decline.
Platinum metals are not that interesting to Keith as they are small, illiquid markets. They are quite volatile, and platinum jewelry looks much like silver so why not just buy silver. Now that the world is moving toward electric vehicles he thinks the reasons for owning platinum has declined.
Talking Points From This Weeks Episodes
• Good time to enter the resource market.
• Silver remains under-rated and under-valued compared to other metals.
• The bull market should drive gold and silver prices multiples higher in the coming years.
• Copper remains a vital metal with which you should have exposure.
Keith Neumeyer – President & CEO of First Majestic Silver Corp. Mr. Neumeyer has worked in the investment community since 1984. He began his career at some Canadian national brokerage firms. Mr. Neumeyer moved on to work with several publically traded companies in the resource and high technology sectors. Mr. Neumeyer has been the President and Chief Executive Officer of First Silver Reserve Inc. since June 19, 2006. His roles have included senior management positions and directorships responsible in areas of finance, business development, strategic planning and corporate restructuring. Mr. Neumeyer was the original and founding President of First Quantum Minerals Ltd. (T-FM). Mr. Neumeyer founded First Majestic Silver in 2002 and First Mining Finance in 2015. Mr. Neumeyer has also listed a number of companies on the Toronto Stock Exchange and as such has extensive experience dealing with the financial, regulatory, legal and accounting issues that are relevant to the investment community. Mr. Neumeyer also won the E&Y Entrepreneur of the Year Award in 2011 for the Metals & Mining category.