Silver Has “Too Many Industrial Uses” for Prices Not to Improve

The silver price has struggled in 2018, but like many market participants, Peter Megaw of MAG Silver (TSX:MAG,NYSEAMERICAN:MAG) sees improvement in the white metal’s future.

Speaking at the Denver Gold Forum, Megaw, the company’s chief exploration officer, said silver’s industrial applications are likely to spur a price rise in the next two years. “I suspect and I feel that silver will improve over that time,” he said. “There’s just too many industrial uses to silver that are coming on.”

Even so, Megaw isn’t hoping for silver to rocket skyward. “I’m not interested in having extremely high silver prices because the world’s economy collapses,” he explained. “But I do believe that over time the silver price will go back up — it would be nice to see it in the $20+ range.”

MAG Silver is developing the Mexico-based Juanicipio property in partnership with Fresnillo (LSE:FRES), and Megaw said that the goal is to bring it into production in mid-2020. “We’re basically building the third copy of the same mine that [Fresnillo has] built in the Fresnillo district in the last 10 years,” he noted.

In closing, Megaw touched on the current state of the resource space, saying that “infatuation” with blockchain and cannabis has been difficult for the sector over the last few years.

“The Millennials have not seen a major downturn in their investing life yet, and it may take a hard event like that to hit them so that they pay attention again to the historic safety that’s represented by precious metals,” he said.

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Securities Disclosure: I, Charlotte McLeod, 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.