Silver has made some significant gains in the not-too-distant past, though it has not gone past the mark of $20 per ounce since 2016. Still, investing experts are keen on the potential for silver to see some significant gains. In fact, the CEO of First Majestic Silver, Keith Neumeyer (who is respected in his field) believes silver could eventually reach $130 per ounce.
This might seem a little unbelievable considering the value of the metal is still hovering below $20, meaning it would take the metal expanding by more than eight times its current value, but he believes the precious metal is being helped by the use of various technologies that make silver more accessible and valuable.
Part of Neumeyer’s belief here is that he sees the current market as being very similar to when investors were riding the dot-com bubble while the mining sector was not in a good way. He believes the market will soon correct itself as it did in 2001 and 2002, with mining getting a big boost in pricing. This was when Neumeyer himself made some significant gains in investing in mining.
Times haven’t been great for the mining sector over the last five or six years, but many companies have recovered well since the recession, and production could very well see some big boosts as cashflow continues to increase and the mining sector continues to update and upgrade its technologies. As mining becomes more efficient, precious metals like silver will become more valuable.
What others are saying
Neumeyer isn’t the only expert with some strong opinions about the future of silver and its current and potential market values. Many people do believe silver is undervalued currently, even if it’s not going to reach triple digits any time soon, and that there are currently some ideal conditions in the market for the prices of silver to soar. Just a few examples of these conditions include low interest rates, the presence of a significant amount of debt and some generally overvalued markets. Many also agree with Neumeyer’s assertion that mining is entering a bull market, which could very much help the price of silver and other precious metals.
As for how high the price of silver can reasonably go, it’s hard to say for certain. The highest silver has ever gone was slightly under $50 in the 1970s, a price it nearly met again in 2011. This year, the highest silver has gone was about $17.60. That doesn’t make matters especially promising for a triple-digit silver price, but it does give an idea of historical context.
Projections indicate the price of silver will probably get close to $20 by Q3 2019, so other experts tend to believe that while the price of silver will increase, it will do so to a much more marginal degree than Neumeyer’s lofty expectations.
For more information about what you can expect out of the price of silver moving forward and how you can plan for the future with precious metal investing, contact Gold Wealth Financial today.
- by Steve Hunt
Categorised in: Precious Metal Investing