by Mac Slavo, SHTFPlan:
If there’s one thing we know about precious metals, it’s that everyone has an opinion about how gold and silver will behave as we delve deeper into global economic crisis. So, who better to give us a bit of perspective than the Chief Executive Officer of one of the world’s largest primary silver producers?
Keither Neuemyer, who has been an outspoken critic of rampant price manipulation on commodity exchanges is the CEO of First Majestic Silver and the Chairman of precious metals mineral bank First Mining Finance. His latest revelation suggests that despite billions of dollars being traded daily on paper exchanges, physical silver supplies around the world have tightened to such an extent that manufacturers have been left with no choice but to come directly to mining companies to acquire the precious metal for their high-tech products. With this in mind, and the fact that silver demand today is greater than when it was trading at nearly $50 in April of 2011, one can’t help but think that based strictly on the fundamentals we should see a much higher price in coming months and years.
Despite the supply demand fundamentals clearly indicating prices should be significantly higher, Neumeyer understands that this isn’t always the driving force behind market moves.
I don’t think it’s supply demand fundamentals… You can’t tell me for a second that when silver was trading at $50 in April of 2011 that the demand for silver was greater than it is today. Actually, silver demand at current levels at $16-$17 is greater today than it was when silver was at $50.
So, if the price was impacted by supply/demand fundamentals silver would be trading at much, much higher prices than it is today.
And fundamentally, Neumeyer doesn’t even consider silver a precious metal, but rather, a strategic metal that is absolutely necessary for the modern age and one that is a lot more rare than most people understand.
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