In this new video interview, Marc Friedrich and Keith Newmeyer, founder of silver producer First Majestic and a legend in the mining business, discuss the performance of the precious metal markets, inflation, and price manipulation among other topics.
Even though conditions should be perfect for a precious metal rally in the light of current geopolitical crises and inflation, price gains for gold and silver have been limited. Keith Newmeyer believes the silver market is being manipulated. He points out that two industries alone – the solar industry and the electric car industry – consume nearly 25% of the world's total silver supply. The physical market is very tight, but the price is dictated by trading on the leveraged paper markets.
Newmeyer has been campaigning for a different price discovery on the precious metal markets for years. For this reason, his strategy with First Majestic is to temporarily withhold silver production and not sell while the silver price is too low.
Keith Newmeyer and Marc Friedrich are expecting a crash on the stock markets. Newmeyer predicts that a large part of the capital that is currently still chasing tech stocks will then flow into the commodity sector. The price of gold could then rise to $3000 an ounce while the gold/silver ratio collapses at the same time. For silver, this would mean significantly higher price gains in percentage terms; a doubling of the price within a few quarters is quite conceivable, says Newmeyer. For a time horizon of three to five years, the mining expert is sticking to his forecast of a three-digit silver price.
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