Silver has made significant gains in the past, but has not risen past US$20 per ounce since 2016.
Nonetheless, well-known figure Keith Neumeyer, CEO of First Majestic Silver (TSX:FR,NYSE:AG), believes the white metal could reach into the triple digits, an idea he reiterated in an interview at the top of 2020.
Neumeyer has voiced this opinion many times, giving the US$130 number in a November 2017 interview with Palisade Radio and again in March 2018 with Kitco. In the past, he’s been even more bold, suggesting the white metal could reach US$1,000.
In order to better understand where Neumeyer’s opinion comes from, it’s important to take a look at the factors that affect the metal’s movements, where prices have been in the past and where other industry insiders believe silver could be headed. First, let’s dive a little deeper into Neumeyer’s prediction that the white metal can break the seemingly distant US$130 level.
Silver in the future: Why US$130?
There’s a significant length for the silver price to go before it reaches the success Neumeyer has boldly predicted. In fact, in order for the precious metal to jump to US$130, its price would have to increase by close to eight times its current value.
Neumeyer sees US$130 silver in the cards in part because he believes the current market compares to the year 2000, when investors were sailing high on the dot-com bubble and the mining sector was down. The First Majestic Silver CEO thinks it’s only a matter of time before the market corrects, like it did in 2001 and 2002, and mining sees a big rebound in pricing. It was during this time that Neumeyer himself invested heavily in mining stocks and came out on top.
“I’ve been calling for triple digit silver for a few years now and I’m more enthused now,” said Neumeyer at an event in January of this year. “But I’m cautiously enthused because, you know, I thought it would have happened sooner than it currently is happening.”