Supply Deficit Needs Triple Digit Silver to Adjust

EDITOR NOTE: If you’re not familiar with First Majestic Silver Corp, the company ranks as the second-largest silver producer in Mexico. According to Bloomberg, a major Japanese electronics maker approached First Majestic to lock in future silver stock. The electronics maker saw signs that supply concerns may push white metal prices up as much as ninefold. Given silver’s monetary and industrial applications, the idea of a ninefold price increase isn’t all that farfetched. Its industrial demand--from legacy use to high tech-has been rising amid tight supply; and it’s expected to continue surging as electronic and green energy applications expand. Investor demand also remains robust, as the US Mint’s torrid sales have shown. Despite silver outperforming both gold and the S&P 500 from the pandemic low (March 2020), growing demand for the white metal counters any fundamental argument that silver might be anywhere close to being overvalued--meaning, we might see that ninefold or triple digit silver increase after all. 

Keith Neumeyer is President & CEO of First Majestic Silver Corp #AG and Chairman and Founder of First Mining Gold #FF. He stopped by to discuss the following:

00:00 Intro
00:20 - Silver Supply/Demand dynamics and the current supply crunch.
10:12 - Is there any way to replace silver?
13:07 - What does investment demand in silver look like currently
16:19 - Why the disconnect between the paper and physical silver prices and when will it end?
20:15 - How is First Majestic will capitalize on growing silver demand
22:57 - Will political hostility further contain supply?
25:47 - FIRST MINING GOLD AND A SPECIAL DIVIDEND OPPORTUNITY
31:24 - Gold is 2 years in to a 10-year bull market
35:35 - Where to learn more?

Original post from The Early Age Investor