Must Watch Video

Thu, Oct 23, 2014 - 9:01pm

By now, most have seen last week's announcement from First Majestic Silver regarding their decision to withhold some silver from the market at these price levels. In this remarkably candid interview, the CEO of First Majestic proposes a new "Silver Producer Cartel" to counter the price manipulations so prevalent in today's paper markets.

This video is posted at Dan Ameduri's FutureMoneyTrends site. You can find it here:

In this 15-minute interview, Dan and his guest Keith Neumeyer, the CEO of First Majestic Silver, discuss a number of very important topics, including:

  • First Majestic's recent quarter
  • The rationale for holding back silver from the market
  • How to operate a mining company at these price levels
  • The idea of forming a "Silver Producer Cartel" to counter the manipulative effect of the Comex

Remember, as you listen, that First Majestic is world's largest primary silver producer.

This is fabulous and extraordinarily timely. Please be sure to give this interview a thorough listen.


About the Author

turd [at] tfmetalsreport [dot] com ()


Gamble · Oct 23, 2014 - 9:05pm

Working late turd?

Good on ya!

gamble gamble

FutureMoneyTrends · Oct 23, 2014 - 9:12pm
Gamble · Oct 23, 2014 - 9:13pm

This was too important to wait until morning

Plus, with the NYC Ebola stuff...No sleep for Turd.

NYC mayor Deblasio presser LIVE FEED below:

Dr. P. Metals · Oct 23, 2014 - 9:16pm

I've been quiet For all of 4 hrs :)

now this could be very significant. This is worth discussion and monitoring yes timely for sure. Thx turd.

Gamble · Oct 23, 2014 - 9:25pm

Did that audio seem weird and

Maybe edited and cut together with two different interviews?

whatever he said what he said, I would suggest the CEOs and presidents of gold companies have the same discussion !

gamble gamble

boomer sooner · Oct 23, 2014 - 9:27pm

I take it that there are no

I take it that there are no Big bankers on the board of First Majestic.

Dr. P. Metals · Oct 23, 2014 - 9:27pm

Dr. P

We're all friends here and definitely all in the same boat.

Hang in there and thanks for being a part of the site.

DayStar · Oct 23, 2014 - 9:39pm

Harvey's Up! (TFMR)

Harvey's Up!

  • Mark O'Bryne (GoldCore): Microchips embedded in the arms of citizens to track their activities, the total destruction of the middle classes and a cashless economy where an authoritarian state can freeze the accounts of dissenting citizens excluding them from all economic activity... These are all part of the cheery scenario painted by the highly respected author and IMF-insider with connections to the Pentagon, Jim Rickards in his most recent article for Agora Financial. "In the year 2024" as the article is called, capitalism and markets will have been abolished in favour of a marxist dystopia managed by the "New World Order." The savings and assets of the middle classes will have been annihilated. This unfolds through a series of panics and shocks to the markets and hyper-inflation. As the hyperinflation takes hold there is a mass exodus out of paper currency and into gold. The G-20 arrange for the mass confiscation of gold, to be stored in an enormous vault in the Swiss Alps, in order to force the public back onto newly created digital currency. To ensure that the public cannot protect themselves from the profligacy of governments gold is taken out of circulation forever. "Shock doctrine is simple. Political leaders use crises to ramrod policies into place no one would accept in normal times." Using this model the elites simply wait for the next crisis to unfold and then use the fear and confusion ("people begin to value order over liberty") as cover for implementing anti-democratic agendas. Rickards cites the USA Patriot Act which was passed by congress following the 9-11 attacks. In that highly charged atmosphere, reams of legislation - which had obviously been drafted before the attacks just waiting for the appropriate crisis - were rushed through congress. Privacy in the face of the state is now a thing of the past in the U.S. The private communication of all citizens are collected and stored on a database to be monitored at will by intelligence agencies who are not accountable to the public in any real way.
  • David Schectman: According to an industry insider I know, JPMorgan was the largest physical buyer of silver heading into the summer, but then they stepped away, sold the crap out of the metal on the paper market, knocking the price down $3/oz. and then came back in and bought up the silver (physical) at a huge discount. What a scam!
  • Jamil Anderlini: China will officially launch a new $50 billion Asia Infrastructure Investment Bank on Friday as it steps up its challenge to global financial institutions like the World Bank that it feels are dominated by America and its allies. But only 20 mostly small economies, many of them effectively client states of China, will become founding members of the bank at Friday's ceremony in Beijing after Washington lobbied furiously to stop other countries from signing up. When it first unveiled its plan to establish the bank last year, Beijing extended a broad invitation and several European states, as well as Australia, Indonesia, and South Korea initially showed interest. But thanks to pressure from the US -- conveyed by US diplomats in Beijing, Washington, and other capitals -- none of these countries will join the bank at this stage, although some are hoping to be involved later. India will be the only large economy to sign up to the Chinese initiative at the ceremony in the Great Hall of the People in Beijing on Friday morning, according to people familiar with the matter. It will be joined by Mongolia, Uzbekistan, Kazakhstan, Sri Lanka, Pakistan, Nepal, Bangladesh, Oman, Kuwait, Qatar, and all of the Association of Southeast Asian Nations except Indonesia.
  • James Wilson and Michael Hunter: Demand from China and other parts of Asia will support the price of gold, the chief executive of one of its largest miners said, as the precious metal traded near its strongest level in six weeks. Chuck Jeannes of Goldcorp said he saw "as much clarity in the market as there has ever been," with a "floor" created by strong demand whenever gold reached or fell below about $1,200 per ounce. "The anecdotal evidence is that gold goes down and physical demand goes up," Mr. Jeannes said in an interview with the Financial Times. "A huge number of physical buyers in the world see gold as a bargain below $1,200."
  • Ted Butler (Butler Research): As I mentioned previously, JPMorgan's concentrated short position in Comex silver is now lower than it has been since acquiring Bear Stearns in early 2008. If anything, JPM's Comex silver short may even be lower than I have calculated, simply because it is no longer that large relative to the holdings of the three other big shorts. With just over 34,000 contracts held short by the big 4, once you subtract JPM's 10,000 short contracts, the remaining three shorts average 8,000 contracts each. This is a far cry from years earlier when JPMorgan singlehandedly held as many as 40,000 contracts of Comex silver net short and represented close to 70% of the big 4's total silver shorts. Both the longer term and recent trends seem to indicate JPMorgan may not wish to remain the prime silver manipulator as it clearly had been in the past. Throw in my previous speculation that JPMorgan has been buying physical silver over the past three and a half years with a reckless abandon and may, in fact, be Mr. Big when it comes to buying in SLV and in Silver Eagles; it is easy to conclude that JPM may hold an extreme net long position in silver despite holding 10,000 Comex contracts (50 million oz) short. 
  • Smaulgld: In September 2013 we began tracking the silver to gold sales ratio as reported by the U.S. Mint comparing the number of one ounce American Silver Eagles sold to the number of American Gold Eagles sold. In September 2013, the U.S. Mint sold 364 times more Amerian Silver Eagles than American Gold Eagles. From October 1, 2013 through October 21, 2013 the U.S. Mint has sold 476,500 American Gold Eagles and 42,653,000 American Silver Eagles or 100 X more Silver Eagles than Gold Eagles, far exceeding the 2013-2014 gold silver ratio of about 62:1. Indeed, 2013 was a record year for American Silver Eagles sales, and a record year for over all silver demand. Sales of American Silver Eagles in 2014 are on pace to surpass last year’s record sales. Admist this surging demand, the price of silver has fallen from a high of $32.23 in January 2013 an ounce to $17.50 in late October 2014. The price of silver is lower today than its 1979-80 average prices. In September 2013, we surmised that the supply demand imbalance was a temporary market anomaly that would soon adjust. It hasn’t. The price of silver continues to fall as demand increases. The reverse dynamic of declining sales and rising prices has taken place in the real estate market.* What is causing these imbalances? Quantitative Easing (drives real estate and stock prices higher) and manipulation (drives silver prices lower) – two names for the same thing. It’s the Fed’s stated policy to keep interest rates low in order to boost the stock and real estate markets. It seems that they have achieved these price increases without a corresponding increase in demand or nominal exchange listed company profits. It appears to be an unstated policy of the Fed and central banks to suppress the price of precious metals. 
  • Andrew Hoffman: Volatility, by definition, means the odds of a large move in either direction are equal. However, as noted above, gold and silver NEVER have significant upward movements - and even when sharply rising, they ONLY occur at the same time of day (the Comex open) ALWAYS capped by the aforementioned "Cartel Herald" algorithm. Conversely, there are no limits to the amount, depth or viciousness of PM price declines. As for stocks, the polar opposite is true - as they are NEVER allowed to materially decline; are constantly "goosed" higher, and have a constant backstop of both PPT buying and relentless propaganda. So please, let's stop kidding ourselves with the "volatility" fallacy - particularly as relates to silver, which has been so brutal attacked for so long, it has become "common knowledge" that the commodity with perhaps the most bullish (and stable) supply/demand pictures is "wildly volatile." My friends, the only reason this is so is because TPTB are so terribly fearful of it - knowing full well it is the "financial world's Achilles Heel." Thus, we cannot be more vehement in our view that its risk/reward trade-off has never in history been more favorable - particularly as at any time, on any day, history's most maniacal suppression scheme could abruptly end permanently.
  • Zero Hedge: Just when you thought it was safe to assume that Ebola-in-America was fixed (one day into Ron Klain's tenure as Ebola Czar), NYPost reports some rather disquieting news. A New York City doctor - who returned from treating Ebola patients in Guinea 10 days ago - has been rushed under police escort to Bellevue Hospital... He is being tested for Ebola. Market liquidity has dried up instantly! *PATIENT BEING TESTED AT BELLEVUE FOR POSSIBLE EBOLA, NYC SAYS. *NYC HEALTH DEPARTMENT TO ISSUE STATEMENT SOON, SPOKESMAN SAYS. *NYC: PATIENT WITH FEVER, GASTROINTESTINAL SYMPTOMS AT BELLEVUE. *NYC SAYS PATIENT EBOLA TEST RESULTS EXPECTED WITHIN 12 HOURS. *NYC TRACING ALL OF PATIENT'S CONTACTS. *NYC HEALTH DEPARTMENT ALSO WORKING CLOSELY WITH HHC. Update #2: POSSIBLE NYC EBOLA PATIENT DID NOT SELF-QUARANTINE: CNN. POSSIBLE Zero Hedge: Just when you thought it was safe to assume that Ebola-in-America was fixed (one day into Ron Klain's tenure as Ebola Czar), NYPost reports some rather disquieting news. A New York City doctor - who returned from treating Ebola patients in Guinea 10 days ago - has been rushed under police escort to Bellevue Hospital... He is being tested for Ebola. Market liquidity has dried up instantly! *PATIENT BEING TESTED AT BELLEVUE FOR POSSIBLE EBOLA, NYC SAYS. *NYC HEALTH DEPARTMENT TO ISSUE STATEMENT SOON, SPOKESMAN SAYS. *NYC: PATIENT WITH FEVER, GASTROINTESTINAL SYMPTOMS AT BELLEVUE. *NYC SAYS PATIENT EBOLA TEST RESULTS EXPECTED WITHIN 12 HOURS. *NYC TRACING ALL OF PATIENT'S CONTACTS. *NYC HEALTH DEPARTMENT ALSO WORKING CLOSELY WITH HHC. Update #2: POSSIBLE NYC EBOLA PATIENT DID NOT SELF-QUARANTINE: CNN. POSSIBLE NYC EBOLA PATIENT TOOK UBER TO BOWLING ALLEY YDAY: CNN.


G-Rod · Oct 23, 2014 - 9:48pm

I hope

That there are no nail guns in his garage.

DeaconBenjamin · Oct 23, 2014 - 10:24pm

New oil field found in British North Sea

LONDON, Oct. 23 (Xinhua) -- Oil firms GDF SUEZ E&P UK Ltd and British Petroleum (BP) Thursday announced a new exploration discovery in the British Central North Sea.

The discovery, which spans the two companies' operated blocks, was flow tested at a maximum rate of 5,350 barrels of oil equivalent per day.

Had to hold the information until after the Scottish independence vote.

Mr. Fix · Oct 23, 2014 - 10:29pm
· Oct 23, 2014 - 10:43pm

In case Mr. Neumeyer or First Magestic staff

Are reading this site, let me make one more humble suggestion (since you clearly are forward-thinking people and not interested in following the herd):

Offer an option to pay dividends in physical metal. Watch your stock become the stackers and hedge fund darling and explode- Cut out the middle man.

Colonel Angus · Oct 23, 2014 - 10:47pm

I've suggested often...

...that some of these miners consider saving in their own product rather than converting it all to fiat. If they start writing that they have 100,000 ounces of silver banked rather than US$2 million or so, some of us would buy more stock. And if they did start paying dividends in metal, even more would. The company can save sme transaction costs, though they have to add vaulting costs. Anyway, it would be a way to show the world the company believes in its own product.

Further, they could do share buybacks in PMs, offering to convert shares for silver or gold. Many would take this more seriously than either the GLD or the SLV...

boomer sooner · Oct 23, 2014 - 11:12pm

Management member.  Worked

Management member. Worked for DeBeers! Bet he can bring some ideas into the company about holding back inventory and making prices rise.

Robert McCallum, B.Sc., P.Eng.

Position: Director

Mr. McCallum was most recently the president of Kensington Resources Ltd., a Canadian public mining company, prior to its merger with Shore Gold Inc. (SGF:TSX). During Mr. McCallum's tenure at Kensington, he successfully advanced Kensington from a junior exploration company to an advanced stage development company, dramatically increasing the company's profile and eventually orchestrating a merger with Shore Gold. Mr. McCallum graduated in 1959 from the University of Witwatersrand, South Africa, with a Bachelor of Engineering (Mining) followed in 1971 by a PMD (Program for Management Development) at Harvard Graduate School of Business, Boston, Massachusetts. He has a wealth of experience in mining having worked with DeBeers Consolidated Mines and Anglo American Corp. Ltd. in South Africa followed by Denison Mines Limited, Cyprus Anvil Mining Corp., Potash Corporation of Saskatchewan in Canada and Philex Mining in the Philippines.

Went to check investing.businessweek about insiders, good to go! Interesting to not see in the list of company news anything about witholding silver from market.

So It Goes · Oct 23, 2014 - 11:12pm

@ Spartacus - 2014 1 oz Bullion Platinum Eagle

I believe that the (introduced this year after a many year absence) US Mint has stopped producing the 2014 Platinum bullion Eagle because of lack of demand. Apparently at current Pt price it was costing the mint too much money to lease the rights to buy the precious metal in the future. As the mint can no longer make a profit, they stopped manufacture. I just looked at the Production figures today and the mint says they sold a total of 16,700.

This coin is available at Spot + $75. This is a slightly higher percentage premium than an equivalent 1 0z gold eagle.

Nevertheless, I have never held a platinum coin in my hand. Looks intriguing.

Safety Dan · Oct 24, 2014 - 12:19am

Andrew McQuire's Appearance in Video

If you want to see and hear him publicly disclose his thoughts and presentation, start at 25 min of this video.. He shows exactly what happens in the Comex gold market. Andy goes to Washington.. It ends about 31 min. 

Video unavailable

​But there is much more:

12 min: See how the US Government treats Odessy, a treasure hunter, for a picture.

31 min: See Eric Sprott's hired investigation on the gold market - Where's the gold?

36 min: US Government nationalized gold

37 min: Jeffery Christian's thoughts

38 min: Gold repatriation problems & successes

43 min: John Embry's thoughts on Gold

* this video was posted earlier.. Thank you..

Spartacus Rex · Oct 24, 2014 - 12:19am

@ So It Goes

Back in March the U.S. Mint abruptly halted sales of the 2013 Platinum Eagle Proofs @ mintage of 5763 leaving those unsuspecting collectors who were holding off waiting for prices to drop back to Dec 2013 levels S.O.L. and missing out on the lowest mintage since 2007.

When opportunity knocks...wink

Cheers, S. Rex

Spartacus Rex · Oct 24, 2014 - 12:21am

Lars Schall -Keith Barron - I believe we’ve seen Peak Gold*

Keith Barron - I believe we’ve seen Peak Gold*
Spartacus Rex · Oct 24, 2014 - 12:28am
Safety Dan · Oct 24, 2014 - 12:43am

Inflation vs. Deflation –

Inflation vs. Deflation – Part 3
How the banking industry is stealing America’s wealth with the ultimate ‘buy high, sell low’ scam

Buy high, Sell Low

Chart of Growth in U.S.Gross Domestic Product (GDP)

Chart of U.S. Unemployment

Worldwide, GDP is deflating because the values of the assets in the global economy are diminishing as people, and even governments, are forced to either default on their loans or sell their assets for less than they paid for them (this process is called “liquidation”). British economist, Fred Harrison, has conservatively estimated that the eventual devaluation of real estate globally will amount to over $45 trillion dollars. Harrison’s figure looks like this: $45,000,000,000,000. To put all those zeros in perspective, Harrison claims that that amount is equivalent to the annual GDP of 21 of the largest nations in the world (UK, South Africa, Portugal, Norway, Russia, Spain, U.S.A, Denmark, China, Australia, Canada, France, Germany, India, Netherlands, Mexico, South Korea, Ireland, Japan, Italy, New Zealand ) and describes it this way:

“If you can imagine these 21 countries closing down their economies for one whole year without anyone earning a single penny, that gives you some idea of the scale of the loss.”

Actually, it’s probably going to get worse than that.

In the final installment we will look briefly at several corroborating examples of the deflationary behavior of our economy and then discuss the differences between the way Austrian School free-market economists would be handling the problems of this crisis compared to the way the Keynesian-minded Federal Reserve and the U.S. government have chosen to deal with them.

This is a 4 part article that was posted earlier this year.. Great article. 

Safety Dan · Oct 24, 2014 - 12:50am

Ebola Is Bad, This Is Worse: 100% Fatal

A lot of people may not have heard of this.

100% fatal & man made... 

Safety Dan · Oct 24, 2014 - 1:18am

Court Dismisses Lawsuit

 Court Dismisses Lawsuit Against IRS Over Targeting

WASHINGTON -- A federal court dismissed two lawsuits against the Internal Revenue Service Thursday, ruling that the tax agency is no longer targeting conservative tax-exempt groups for greater scrutiny.

"Unless an actual, ongoing controversy exists in this case, this court is without power to decide it," U.S. District Court Judge Reggie Walton ruled, dismissing one lawsuit brought by True the Vote, a conservative vote-monitoring organization.

Source: USA Today. Read full article. (link)

SRSrocco · Oct 24, 2014 - 2:25am


First.... I have to applaud Keith Neumeyer for suspending sales of nearly 1 million oz of First Majestic's silver production. They are the only primary silver miner that has held back production. First Majestic also held back 700,000 oz in Q2 2013 due to the huge take-down in price from $35 in Oct 2012 to $18 in June 2013.

Unfortunately, when First Majestic sold their 700,000 oz in Q3 2012... they received 61 cents less than their realized price in Q2 2013.

Second.... Keith states that First Majestic's cost of production is at the lower end compared to other miners. While this is true, my break-even for First Majestic in Q2 2014 was $18.97. This is why they can't continue to hold onto unsold silver for more than a quarter or two at the most. As Neumeyer stated, "Our margins are thin."

Third... the average price of silver (according to Kitco) was $19.74 in Q3 2014. If First Majestic sold all their silver throughout the quarter, their average realized price would have been closer to that $19.74. 

However, the current price of silver is now $17.20 an ounce. First Majestic needs $2.50 more for silver in Q4 2014 then the current price today to make that suspension of sales pay off. And to reach an average of $19.74... the price would have to be above it in the $20-$21 range for several weeks.

If First Majestic has to sell their 934,000 oz of held back silver in Q4 2014 at $17-$18.. this will be a loss of $1.50-$2.50 an ounce.

CONCLUSION... we have to applaud Neumeyer and First Majestic for holding back silver sales. However, it's more important that they get a GROUP of Primary Silver Miners to go along... so their combined sacrifice could be a good PR Statement, instead of a single primary silver miner going at it alone... with the chance of losing money if silver prices don't head higher.


Blackshook · Oct 24, 2014 - 2:35am

Watch the share price

As a holder of First Majestic it appears to me that they have been hit harder by the shorts than most other stocks (I may be biast !). Is this the response to KM opening his mouth? what is there to really stop the powers that be from driving this stock down by naked shorting as a warning to all? Watch this stock carefully.

Gamble Blackshook · Oct 24, 2014 - 2:39am

Unfortunately that's what I was thinking

But fortunately that's what I was thinking , I'm a buyer if this stock starts to really starts to fall to the downside !

gamble gamble

Karankawa · Oct 24, 2014 - 3:27am


Thanks Steve.

I follow your site daily. It's as important to me as my garden and livestock.

I thank Turd for allowing the conversation here. I know where this is going and don't need a helping hand to do the right thing for Independence. 

Owning silver and gold isn't about a trade, it's about your future.

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