It’s the rare day I wake up to see news so powerfully Precious Metal bullish – regarding its short and long-term implications – I can barely contain myself. The last such event was the BrExit – which set into motion the inevitable collapse of the European Union and Euro currency as we know it. Which, seven months later, appears more certain than ever – and perhaps, if this year’s Dutch, French, German, Italian, and Catalonian elections and legislative actions trend in the direction I anticipate, imminent. Which I assure you, last night’s news will only hasten further.
It is my privilege now to bring in Keith Neumeyer, founder and CEO of First Majestic Silver Corp, one of the top silver mining companies in the world. Keith has an extensive background in the resource and finance sectors and has also been an outspoken voice about the manipulation that has been occurring in the futures market pricing of silver.
When I published “frankly, I’m terrified” in October, even I could not comprehend the dire ramifications of Donald Trump’s election – which at the time, I predicted would have the political, economic, and monetary impact of a “BrEXit times ten.” Care of the most rigged markets of all time, this world-changing event hasn’t yet been discounted in equities or Precious Metals; although arguably, it has – and continues to be – by collapsing worldwide currency markets. Like, for instance, the UK Pound; which upon yesterday’s definitive call by Prime Minister Theresa May for a “hard BrExit,” plunged to essentially the lowest level in UK history. This, in a nation that already has, care of lunatic money printing by the Bank of England, one of the world’s highest costs of living.
COT Silver Report - January 13, 2017
Highlights at the conference will be a fire-side chat with mining billionaire, Frank Giustra, Morning Star's #1 rated gold fund manager, Frank Holmes, several live-on stage "CEO grillings" hosted by Katusa Research founder and CEO, Marin Katusa, and a Roast of legendary investor, author and mining newsletter writer, Doug Casey.
How low and how high will the price of silver range on the PAPER markets during 2017? Knowing the influence central bankers, politicians, HFT algos, bullion banks and JPMorgan exercise over increasingly managed markets … it is impossible to answer the question, and it is probably the wrong question to ask.
Gold and silver continued their rise this week in very light physical trade, though trade in futures was active. From last Friday’s close, gold rose $20 to $1193, and silver by 30c to $16.76 in early European trade this morning. Behind the rise in gold was a fall in the dollar, which had been very strong in the second half of 2016. In early European trade this morning prices have opened steady, below the intraday highs of yesterday, as dealers try to decide if there will be some profit-taking after a strong week.
With each passing day – particularly, as we approach Trump’s inauguration – the confluence of “PM bullish, everything-else-bearish” headlines grows larger, and broader. Consequently, the list of vital questions to be answered is as long, as it is broad. Such as, will the outgoing Obama Administration’s last ditch attempt to sabotage the incoming Trump Administration succeed? Will plunging currencies like the Euro, the UK Pound, the Mexican Peso, and the Turkish Lira find their footing – or continue to implode?
I have a LOT to speak of today – culminating in something I should have memorialized years ago, amidst my heyday of publishing “primers” of the gold Cartel’s myriad, day-to-day operations. I’m having trouble choosing which “PM bearish, everything-else-bullish” topic to start with – but due to how smothering the never-ending “Russian hacking scandal” has been – spearheaded by CNN, “America’s least trusted media outlet”; and the fact that started watching the incredible USA Network Series, Mr. Robot; I’m commencing with an item I’m sure will get little press – other than on Zero Hedge, where I found it – but has a LOT of relevance to the world’s future path.
The profit margin trend at the world’s largest primary silver mining company has experienced a rapid decline over the past several years. Fresnillo PLC in Mexico, is the largest primary silver mining company in the world. Last year, Fresnillo PLC produced 47 million of silver and 762,000 oz of gold. For all their hard work, Fresnillo’s profit margin versus its cost of sales fell to an all-time low of 7% in 2015. This can most certainly be blamed on market intervention, which I will discuss in more detail in upcoming articles.