In this PDAC interview, Darren Blasutti, CEO of Americas Silver, shares his thoughts on where the silver market is headed.
The Investing News Network (INN) sat down with Darren Blasutti, CEO of Americas Silver (TSX:USA,NYSEAMERICAN:USAS) at this year’s Prospectors & Developers Association of Canada (PDAC) convention.
Blasutti told INN how silver’s rally is directly correlated to how long gold has been rebounding for, his price prediction for the white metal this year and why he doesn’t think that the silver space will see any merger and acquisition (M&A) activity anytime soon.
“Silver generally follows gold, and it’s usually delayed by six months or three months […] You saw gold start to move, you see silver start to move,” he said, adding, “I think that most people are predicting a good year for gold, which means that the second half of the year, or maybe early next year, you’ll really start to see [silver] moving.”
When prices do start to move, Blasutti believes that the metal will finally be able to break the current psychological level of US$16 per ounce.
“I think we are going to see US$17 or US$18 for silver, and I think as we get towards the end of 2020, I think our view is that it is going to be closer to US$20.”
Switching gears, Blasutti addressed the current theme of M&A activity within the gold space, stating that he does not see the same thing happening for silver in the near future.
“[The silver industry] is very small, and right now, where silver prices are, there are probably only four or five companies that actually make money. So, the problem with consolidation of the silver companies is you are going to buy something smaller that loses money,” he noted.
Blasutti added, “you are not going to see as much consolidation until you see a real price move.”
Watch the interview above for more from Blasutti. You can also click here to view our full PDAC 2019 interview playlist on YouTube.
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Securities Disclosure: I, Nicole Rashotte, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.