As gold and silver are consolidating, the mining sector is going into an interesting change. Young people are coming into the mining sector and new technologies are being brought in. Neumeyer does not believe central banks can afford to take rates much higher. Over the next couple years, he expects the Fed to cut rates which will be bullish for gold. The gold/silver price ratio is about 85/1. Neumeyer explains why he sees the ratio collapsing to 9/1. Silver is still under the cost of production for many mining companies. High oil prices are affecting the mining sector negatively. Lastly, Neumeyer shares First Majestic Silver's recent growth in production.
Keith Neumeyer is the president and CEO of First Majestic Silver, one of the largest primary silver mining companies in the world. He's also the founder and chairman of First Mining Finance. Both companies are traded on the Canadian and U.S. stock exchanges.