"Silver Is Going PARABOLIC! Millions Will Buy Silver When the Great Panic Begins" - Keith Neumeyer

Finance Log
8 Jun 202412:52

Summary

TLDRThe video script discusses the secretive nature of silver quantities in automobiles and devices, and how banks' short selling tactics impact silver prices without affecting industrial demand. Despite banks being short millions of ounces, silver's industrial demand, especially in automotive manufacturing and photovoltaics, is rising. The script highlights the challenges faced by the silver market due to supply constraints and calls for regulation to prevent excessive short selling. It also emphasizes the importance of mining to local economies and the need for government support to ensure a stable supply of metals.

Takeaways

  • 🀫 The exact amount of silver in automobiles and devices is a closely guarded secret.
  • πŸ“‰ Silver prices have fluctuated, reaching a 12-year high of $32.32 per ounce, but are currently struggling to surpass $30.06, indicating potential for further decline.
  • 🏦 Banks are short on hundreds of millions of ounces of silver and are feeling the pressure due to market fluctuations.
  • πŸ’Ό Major financial institutions are suspected of using short selling tactics to manipulate market sentiment against silver investment.
  • πŸš— Despite market manipulation, the industrial demand for silver, especially in the automotive sector, remains unaffected and is steadily rising.
  • ⚑ The photovoltaic industry has seen a significant 64% increase in silver demand, from 118.1 million ounces in 2022 to 193.5 million ounces in 2023, with a projected 20% increase in 2024.
  • πŸ”‘ Banks are facing challenges in providing financing for the gap between selling and delivering silver, with credit limits being pushed to their limits.
  • 🏭 Some companies are taking innovative approaches, such as establishing their own mints, to gain greater control over the silver supply chain and reduce reliance on financial institutions.
  • 🚫 There are concerns about the lack of regulation on banks' ability to short sell large amounts of silver, which could lead to market instability.
  • 🏘️ The mining industry is vital to local economies, but when metal prices are suppressed, these communities suffer and cannot realize the full value of their resources.
  • 🌐 The speaker advocates for regulation to limit banks' short selling capacity to a reasonable amount relative to the world's silver production to protect the mining industry and communities.

Q & A

  • Why are the exact amounts of silver in automobiles and devices considered a secret?

    -The specific quantities of silver used in various products are kept confidential by companies, likely due to competitive and strategic reasons. This secrecy is also because the actual amount of silver used is relatively insignificant compared to the overall cost of the products.

  • How have silver prices fluctuated recently according to the transcript?

    -Silver prices have seen significant fluctuations, reaching a 12-year high of $32.32 per ounce on May 20th. However, recent trends indicate a decline, with prices struggling to surpass the $30.06 level, suggesting potential further losses and a bearish correction.

  • What is the role of short selling in the manipulation of silver market sentiment?

    -Major financial institutions have been using short selling tactics to dissuade people from investing in silver, thereby manipulating market sentiment. This practice aims to control the silver price and discourage investment, despite not impacting the industrial demand for silver.

  • How has the demand for silver in the photovoltaic industry changed recently?

    -The photovoltaic industry has seen a remarkable 64% increase in silver demand, from 118.1 million ounces in 2022 to 193.5 million ounces in 2023. This upward trend is expected to continue with a projected 20% increase in 2024.

  • What challenges are banks facing in relation to their short positions on silver?

    -Banks are currently short hundreds of millions of ounces of silver and are feeling the pressure due to the constraints on their credit limits, which have been pushed to their breaking points. This situation poses significant challenges for gold and silver producers, who are struggling to sell metal at prevailing market prices.

  • What innovative approach is being taken by some companies to address the challenges in the silver market?

    -Some companies, including Keith's, are taking the initiative of pulling silver from the traditional banking system by establishing their own mint. This move aims to gain greater control over the supply chain and reduce dependence on external financial institutions, hoping to stabilize the market and ensure a more consistent flow of silver.

  • Why is the lack of regulation on short selling in the silver market a concern?

    -The lack of regulation allows banks like JP Morgan and HSBC to sell large amounts of silver easily, which can lead to market manipulation and artificial suppression of metal prices. This can have negative impacts on communities supported by the mining industry, as they are unable to realize the full value of their resources.

  • What impact does unregulated short selling have on local communities supported by the mining industry?

    -Unregulated short selling can lead to artificially suppressed metal prices, which in turn affects the local economies that depend on the mining industry. Mines contribute to education, infrastructure, and essential services, and when prices are suppressed, these communities suffer and cannot realize the full value of their resources.

  • What is the current state of new silver supply according to the transcript?

    -The transcript suggests that there is no new silver supply on the horizon. In fact, there is less supply, and the speaker does not foresee any significant increase in the near future, indicating a potential ongoing supply shortage.

  • What is the potential consequence of the current situation for the mining industry and investors?

    -The current situation of unregulated short selling and supply constraints could lead to continued market volatility and manipulation. This may impact investors and communities dependent on the mining industry, as it could affect the stability and profitability of mining operations.

  • What is the speaker's view on the role of governments in supporting the mining sector?

    -The speaker believes that governments are not providing enough support to the mining sector, despite its significant contributions to local communities and economies. He suggests that politicians should be more proactive in recognizing and addressing the challenges faced by the industry.

Outlines

00:00

πŸš— Silver's Role in Industries and Market Manipulation

The first paragraph discusses the secrecy surrounding the amount of silver used in various devices and automobiles, highlighting its insignificance to the overall cost of these products. It notes the fluctuation in silver prices, reaching a 12-year high but currently struggling to maintain value. The speaker, Keith, points out the market manipulation by banks through short selling, which affects investment sentiment but not the industrial demand. The automotive and photovoltaic industries are emphasized as having a steadily increasing demand for silver, outpacing supply for the fourth consecutive year. Keith's company is taking innovative steps to stabilize the market by establishing its mint, aiming to control the supply chain and reduce reliance on financial institutions.

05:02

🏦 Banking Constraints and the Impact on Mining Communities

The second paragraph delves into the banking system's role in financing the gap between selling and delivering silver, a relationship that has been in place for decades. However, credit limits have been pushed to their limits, causing significant challenges for gold and silver producers who are unable to sell metal at current market prices. The speaker discusses the lack of regulation that allows banks to sell large amounts of silver easily, which can artificially suppress metal prices and negatively impact mining communities that rely on fair pricing for their resources. The importance of imposing constraints on short selling in the silver market is emphasized, as well as the need for banks to be limited in their short selling capabilities, similar to regular banking practices.

10:04

🌱 The Future of Silver Supply and Its Socioeconomic Impact

The third paragraph addresses the lack of new silver supply and the potential decrease in supply, with a focus on the lack of new mines coming online and the issues with permitting existing mines. The speaker argues that the mining sector is not producing enough metals to meet the demands set by governments, which is problematic for the envisioned green revolution and other initiatives. The socioeconomic impact of the mining industry is highlighted, with mines contributing significantly to local economies and community development. The speaker criticizes the lack of government support and the potential consequences of unregulated short selling in the silver market, which could lead to continued market volatility and manipulation.

Mindmap

Keywords

πŸ’‘Silver

Silver is a precious metal known for its industrial applications and investment value. In the video, it is discussed as a commodity whose price fluctuates and is subject to market manipulation by financial institutions. The script mentions the industrial demand for silver in sectors like automotive manufacturing and photovoltaics, indicating its importance in modern technology and industry.

πŸ’‘Short Selling

Short selling is an investment strategy where traders sell assets they do not own, with the expectation of buying them back at a lower price to make a profit. The video discusses how major financial institutions use short selling tactics to manipulate market sentiment and dissuade investment in silver, affecting its price and the mining industry.

πŸ’‘Market Sentiment

Market sentiment refers to the overall attitude of investors toward a particular security or market as a whole. In the context of the video, it is influenced by the actions of financial institutions, which use short selling to create a negative outlook on silver, potentially affecting its price and investment decisions.

πŸ’‘Industrial Demand

Industrial demand refers to the need for raw materials in the manufacturing process. The script highlights the rising industrial demand for silver, especially in the automotive and photovoltaic industries, which outpaces supply and creates an attractive investment opportunity.

πŸ’‘Photovoltaic Industry

The photovoltaic industry involves the use of solar panels to convert sunlight into electricity. The video points out a significant increase in silver demand within this industry, with a 64% increase from 2022 to 2023, illustrating the growing importance of silver in renewable energy technologies.

πŸ’‘Supply and Demand

Supply and demand are fundamental economic concepts that determine the price of goods and services. The video discusses the imbalance between the rising demand for silver and the challenges in supply, leading to an attractive investment opportunity but also potential market volatility.

πŸ’‘Banking System

The banking system is the structure of financial institutions through which credit is created, payments are cleared, and funds are invested. The video script mentions that banks are short on silver and have been providing financing to cover the gap between selling and delivering silver, which is now reaching a breaking point.

πŸ’‘Mint

A mint is an official facility for making coins or other forms of money. In the video, it is mentioned as an innovative approach taken by some companies to pull silver out of the traditional banking system, aiming to gain greater control over the supply chain and reduce dependence on external financial institutions.

πŸ’‘Regulation

Regulation refers to the rules and directives made and maintained by an authority. The video discusses the lack of regulation in the silver market, particularly the absence of limits on how much silver banks can short sell, which raises concerns about market manipulation and the potential negative impact on the mining industry and communities.

πŸ’‘Mining Industry

The mining industry involves the extraction of minerals from the earth. The script emphasizes the importance of the mining industry to local economies, providing education, infrastructure, and essential services. However, it also highlights the challenges faced by the industry due to market manipulation and the need for regulatory changes to protect communities that depend on mining.

πŸ’‘Volatility

Volatility refers to the degree of variation of a trading price series over time. The video predicts continued volatility in the silver market if issues surrounding unregulated short selling persist, which could impact investors and communities dependent on the mining industry.

Highlights

The amount of silver in automobiles and devices is a closely guarded secret.

Silver prices are relatively insignificant compared to the cost of an automobile.

Banks are short on hundreds of millions of ounces of silver, experiencing financial strain.

Silver prices reached a 12-year high of $32.32 per ounce on May 20th but have since declined.

Major financial institutions are using short selling to manipulate market sentiment against investing in silver.

Industrial demand for silver, especially in the automotive sector, is steadily rising.

The photovoltaic industry has seen a 64% increase in silver demand from 2022 to 2023.

Supply of silver is struggling to keep up with demand for the fourth consecutive year.

Banks are facing challenges in financing the gap between selling and delivering silver.

Some companies are establishing their own mints to gain control over the silver supply chain.

Unregulated short selling by banks could be detrimental to the mining industry and local communities.

Mines contribute significantly to local economies, including education and infrastructure.

Artificially suppressed metal prices hurt communities that rely on mining for their livelihood.

There is a need for regulation to prevent banks from shorting more silver than is available in the market.

The lack of new supply and potential decrease in existing supply could lead to further market volatility.

Permitting issues are a significant barrier to increasing mining operations and metal production.

Governments are not producing enough metals to meet the demands of their own green initiatives.

Continued unregulated short selling could lead to market manipulation and instability.

Transcripts

play00:00

it's a highly held secret of exactly how

play00:03

much silver is in any kind of automobile

play00:05

or any kind of uh device that we consume

play00:08

as a human race because all these

play00:09

numbers are kept you know very close to

play00:11

the chest but uh nevertheless it it's

play00:14

quite irrelevant if silver is $100 or

play00:16

$200 or $300 you know compared to the

play00:19

price of an A Automobile so but yet the

play00:22

banks are short uh uh hundreds of

play00:25

millions of ounces and and they're

play00:27

they're feeling the pain today over the

play00:29

past year Sil prices have fluctuated

play00:31

significantly reaching a 12year high of

play00:34

$32.32 per ounce on May 20th however

play00:38

recent Trends indicate a decline with

play00:41

prices struggling to surpass the $

play00:43

30.06 level this suggests the potential

play00:47

for further losses and bearish

play00:48

correction in upcoming sessions

play00:51

according to Keith newer one significant

play00:54

factor influencing silver prices is the

play00:56

ongoing battle between major financial

play00:58

institutions and individual investors

play01:01

these institutions have been using Short

play01:03

Selling tactics to dissuade people from

play01:05

investing in silver thereby manipulating

play01:08

Market sentiment however this

play01:10

maneuvering doesn't seem to impact the

play01:12

Industrial demand for silver especially

play01:14

in critical sectors like Automotive

play01:16

manufacturing demand for silver across

play01:19

various Industries including

play01:21

photovoltaic electronics and Automotive

play01:24

is steadily Rising demand has outpaced

play01:26

supply for the fourth consecutive year

play01:28

creating an attractive investment

play01:30

opportunity the photovoltaic industry in

play01:33

particular has seen a remarkable 64%

play01:36

increase in Silvera demand from 118.1

play01:39

million oun in 2022 to

play01:42

193.5 million oun in 2023 this upward

play01:46

trend is expected to continue with a

play01:48

projected 20% increase in

play01:52

2024 however the silver market is facing

play01:55

challenges on the supply side banks are

play01:57

currently short hundreds of millions of

play01:59

ounces of silver traditionally Banks

play02:01

provide financing to cover the gap

play02:03

between selling and delivering silver

play02:05

but recent pressures have pushed these

play02:07

credit limits to their breaking points

play02:09

this situation poses significant

play02:11

challenges for gold and silver producers

play02:13

struggling to sell metal at prevailing

play02:15

market prices due to these constraints

play02:18

to address these challenges some

play02:19

companies including Keith's company are

play02:22

taking Innovative approaches one such

play02:24

initiative involves pulling silver from

play02:26

the traditional banking system by

play02:28

establishing its mint

play02:30

this move aims to gain greater control

play02:32

over the supply chain and reduce

play02:34

dependence on external financial

play02:36

institutions by doing so these companies

play02:39

hope to stabilize the market and ensure

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a more consistent flow of silver we will

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present clips from Keith new me's

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interview with liberty and finance but

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before we do if you want more videos

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like this please hit the Subscribe

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button and turn on the notification Bell

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for more updates thank you and enjoy the

play02:56

video shorts are trying to dissuade

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individual like ourselves to you know

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put uh money into this um as an

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investment into silver you know it

play03:06

doesn't affect the industry because it

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doesn't cost you know for a BMW you know

play03:11

whether it's 30 grams or 40 grams of

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silver you know in electric car whatever

play03:16

the number is and it's a it's a highly

play03:18

held secret of exactly how much silver

play03:21

is in any kind of automobile or any kind

play03:23

of uh device that we consume as a human

play03:26

race because all these numbers are kept

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you know very close to the chess but uh

play03:30

nevertheless it it's quite irrelevant if

play03:33

silver is $100 or $200 or $300 you know

play03:36

compared to the price of an A Automobile

play03:39

so but yet the banks are short uh

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hundreds of millions of ounces and then

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and they're they're feeling the pain

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today and I know that for a fact um you

play03:49

know we deal with the physical market

play03:52

and yet as a minor you know we we sell

play03:55

our ounces and uh um uh we have to sell

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our ounces because we're not in the

play04:00

business of hoarding our own ounces uh

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our institutional investors expect us to

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take advantage of the current metal

play04:07

prices and they want to see those

play04:09

revenues and those those profits and

play04:11

that affects the analysts and that

play04:13

affects the target prices they put on

play04:15

our stock and that affects the

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shareholders who own we have 80,000

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shareholders worldwide if all of a

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sudden we have no revenues then um

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that's not going to be very good for our

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share price um so we have to take

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advantage of the current metal prices

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which we do and are doing uh but it's

play04:31

interesting because the B Bank limits

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that a lot of these Traders have are

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have have hit their limits which which I

play04:40

remember going back to 2011 the same

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phenomenon occurred and but it was so

play04:45

long ago that I kind of forgot about it

play04:47

but now as a minor the gold producers

play04:49

and silver producers out there you know

play04:52

they're having issues uh selling metal

play04:55

at current metal prices because all the

play04:57

credit limits are all at their limits

play04:59

the entire banking system because there

play05:02

is a delay from the time we sell our

play05:04

ounces to the time we actually deliver

play05:06

the ounces and that could be a 30-day

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delay it could be 60 days it could be 90

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days and that that difference is

play05:12

financed and the banks finance that on

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behalf of the mining sector and that's a

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relationship that's been going on for

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decades and decades and decades and

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that's just the simple the way it works

play05:24

yet now those limits have ex have come

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to uh numbers that uh have reached a a

play05:30

Breaking Point and uh and I and I'm

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going to spend some time on this topic

play05:35

over the next couple of months and see

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what can be done from a mining uh uh

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business perspective to see how we can

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avoid such things in the future one of

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the things we have done is open our our

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own mint so we can pull silver out of

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the banking system we can talk further

play05:51

about that uh but dunan your question

play05:54

was also on the supply side you know I

play05:56

think you had about 10 uh topics of in

play05:59

your Preamble which uh I should had a

play06:01

piece of paper in front of me and wrote

play06:03

them all down but you on the supply side

play06:05

you know we haven't seen any new Supply

play06:08

and I don't see any new Supply I see

play06:09

less Supply while JP Morgan no longer

play06:12

holds a short position having mostly

play06:14

exited the paper silver markets after

play06:17

acquiring a massive stockpile of metals

play06:19

and maintaining a neutral stance Keith

play06:21

highlights a concerning issue currently

play06:24

there are no such limits allowing Banks

play06:26

like JP Morgan and HSBC to sell large

play06:30

amounts of silver easily this lack of

play06:32

Regulation raises concerns emphasizing

play06:35

the need for a system to prevent Banks

play06:37

from shorting more silver than is

play06:39

reasonably available in the market just

play06:41

as traditional banks have limits on

play06:43

lending compared to deposits similar

play06:46

constraints should be imposed on Short

play06:48

Selling in the silver market despite a

play06:50

decline in the commercial net short

play06:52

position by 781 comic contracts there

play06:55

were no significant shifts in the

play06:57

disaggregated coot report man managed

play06:59

Money traders increased their net long

play07:01

position by 308 comx contracts the

play07:05

consequences of unregulated Short

play07:06

Selling extend far beyond financial

play07:09

markets impacting entire communities

play07:11

supported by the mining industry mines

play07:13

are vital in local economies

play07:15

contributing to education infrastructure

play07:18

and essential Services yet when metal

play07:20

prices are artificially suppressed these

play07:22

communities suffer unable to realize the

play07:25

full value of their resources you would

play07:27

have to get the regulars to put a limit

play07:28

on the banks

play07:30

um so so right now there's no limit um

play07:34

the banks have no limit on what they can

play07:36

short so so if if you know J Morgan HSBC

play07:40

or whoever whoever it is wants to short

play07:43

a couple hundred million ounces of

play07:45

silver tomorrow no no big deal they can

play07:47

do it on a on a a click of a mouse um

play07:52

there should be a system in place

play07:54

whereby you know we know the world

play07:56

supply of of silver is it's about 820

play07:59

million ounces um last year

play08:02

approximately so you know the bank

play08:04

should be just just like a regular Bank

play08:07

you're you're you're allowed to go 10

play08:09

times above your deposits so you can't

play08:12

expose your bank you know more than 10

play08:15

times um um than what you currently have

play08:19

from your um um

play08:21

clients on deposit today so that's a

play08:24

number 10 times is is what the banking

play08:26

system uses uh uh to manage their books

play08:30

so if if uh if you limit uh you got 820

play08:34

million ounces of production you limit

play08:36

the banks to to 8.2 billion ounces at

play08:39

any given time that that at least limits

play08:41

them and they can they can go beyond

play08:43

that number and that gives the producers

play08:46

uh at least a a you know a little bit of

play08:50

room to to make a little bit of extra

play08:52

money and what what what is a producer

play08:54

do and this is really what drives me

play08:56

crazy is a producers um uh Supply

play09:00

communities with wealth you know we

play09:04

educate uh thousands of children the

play09:07

schools in the communities that were

play09:08

active in were built by us in many cases

play09:11

we we Supply the water infrastructure

play09:13

the electrical infrastructure the

play09:15

internet uh we we Supply computers you

play09:18

know pencils papers garbage collection

play09:21

uh waste collection um uh we do

play09:24

everything if it wasn't for a mine in a

play09:27

small town in the middle of nowhere

play09:29

these communities wouldn't exist and

play09:31

these children would not get educated

play09:32

and they would not go into universities

play09:34

and would not have a sustainable life

play09:36

they'd be to be living in poverty and uh

play09:40

and and yet the banks don't want the

play09:42

metal prices to go higher so who are

play09:44

they actually hurting they're actually

play09:46

hurting these small little Compu

play09:48

communities around the world who can't

play09:51

get proper price for the Commodities

play09:54

that that that these communities are

play09:56

producing and and it's quite shocking

play09:58

and uh that more politicians don't come

play10:01

to to to the Forefront and argue this

play10:03

point and I'm always out there saying

play10:06

hey look who are you hurting you know uh

play10:08

really you know you drive through these

play10:10

small towns and I've been through many

play10:12

of them and uh from the early days in

play10:14

Africa uh you know to my current uh

play10:16

position you know uh in Mexico it's uh

play10:20

the amount of wealth that that the

play10:22

mining sector creates is is phenomenal

play10:24

yet you know we don't get the support

play10:26

from the governments because they don't

play10:27

want to you know walk away away from

play10:29

their desks and Anda travel to these

play10:32

communities and see these you know young

play10:34

kids walk around school uniforms with

play10:36

computers in their hands and you know

play10:38

wonder where all this money came from

play10:40

right it didn't come from the government

play10:42

I can tell you that so any it's going to

play10:45

supply you know I don't see any reason

play10:48

why Supply is going to increase um you

play10:51

know I don't know of a large mind that's

play10:53

going to be coming online anytime soon

play10:55

um there's a lot of

play10:57

unpermitted um min around the world that

play11:00

could be permitted but they're not

play11:02

permitted um so that's you know up to

play11:04

the individual company you should

play11:05

probably talk to them and get details on

play11:08

on what's the issue because every issues

play11:10

you know every jurisdiction every

play11:12

project has its own unique um uh you

play11:16

know issues with them and uh reasons why

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some permits take longer than others but

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that's really what it comes down to is

play11:22

really permitting if governments want to

play11:24

see the Green Revolution continue on the

play11:27

efforts or on the direction that they

play11:29

want want or at least suggesting they

play11:30

want um the mining sector does not

play11:33

produce enough copper does not produce

play11:35

enough silver you know zinc uh you go

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across the board uh to to basically all

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metals uh we're simply not producing

play11:43

enough metals to to meet the demands

play11:46

that the governments are suggesting that

play11:47

we try to accomplish over the next 20 30

play11:50

years and they're they're just you know

play11:52

they're they're oblivious to to you know

play11:55

what what's actually going on in the

play11:56

industry metal supplies are dropping in

play11:58

front of our PR and the politicians

play12:00

aren't doing anything looking forward we

play12:03

could see continued volatility and

play12:05

manipulation if the issues surrounding

play12:07

unregulated Short Selling in the silver

play12:09

market persist with constraints on

play12:11

bank's ability to short sell large

play12:13

amounts of silver the market May remain

play12:15

stable impacting investors and

play12:17

communities dependent on the mining

play12:19

industry share your thoughts on Keith's

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prediction in the comment section below

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Related Tags
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