Why the Price of Silver Could Be Subject to Manipulation

First Majestic Silver CEO, Keith Neumeyer, claims that the market is being manipulated because of the metal’s role as an investment commodity and an industrial metal. This alleged manipulation is widespread, driven by traders that ignore this precious metal’s significance and fundamental value.

In a recent interview, Neumeyer explained that traders saw silver as just a number on a screen, failing to recognize that the metal needed to be trading at a much higher price.

As of mid-July, the metal’s deficit globally is expected to increase by 17% to reach just over 215 million ounces. According to the Silver Institute, this rise is primarily driven by a 2% rise in the metal’s industrial demand and 1% drop in the metal’s supply.

Silver demand spans several industries, including solar panels, electric vehicles and electronics, all of which have recorded strong growth. This deficit emphasizes the metal’s strategic importance and the important role it plays in advancing renewable energy solutions and technology.

During the interview, Neumeyer explained that while silver wasn’t gold, it was a strategic commodity that humans need to accomplish various things. He noted that almost everything humans construct require some silver.

The Silver Institute reports that for four consecutive years, the silver market has been in a structural deficit with the present deficit adding up to 240 million ounces. This shortage is significant, especially since the worldwide mining sector only produces about 850 million ounces a year.

Reports from the institute show that while there was a 30% drop in silver’s deficit in 2023, it remained significant at about 184 million ounces.

Neumeyer also drew attention to institutional investors’ absence from the silver market, explaining that major institutions which needed to be supporting the mining sector for its essential minerals weren’t participating. Large institutions, such as the Canadian Pension Plan, don’t hold any notable positions in mining or silver equities. This, Neumeyer noted, was surprising given the mining sector’s important role in the worldwide economy.

He added that this lack of institutional support was a missed opportunity because it created a gap in market support, which was filled by smaller entities and retail investors.

In addition, Neumeyer discussed his forecast of silver’s price hitting triple digits, explaining that it was grounded in silver’s crucial role in the green-energy revolution. While this prediction was met with skepticism in the past, the metal’s price hitting $31.52 while market dynamics demonstrate a deficit has seen it become more popular.

As the reality of triple-digit silver prices gradually comes closer, enterprises such as First Tellurium Corp. (CSE: FTEL) (OTCQB: FSTTF) engaged in prospecting for and extracting this precious metal could deliver far higher shareholder value than was initially projected.

NOTE TO INVESTORS: The latest news and updates relating to First Tellurium Corp. (CSE: FTEL) (OTCQB: FSTTF) are available in the company’s newsroom at https://ibn.fm/FSTTF

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