Could the Silver Price Really Hit $130 per Ounce?

- July 25th, 2018

What’s in store for silver in the future? Keith Neumeyer of First Majestic Silver has said he sees the white metal reaching $130 per ounce.

Silver has made significant gains in the past, but has not risen past $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 the $130 level.

Neumeyer has voiced this opinion many times, recently giving the $130 number in a November 2017 interview with Palisade Research, and again in March 2018 with Kitco. In the past he’s been even more bold, suggesting the white metal could reach $1,000.

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In Neumeyer’s opinion, the precious metal is being bolstered by technology, along with other factors. He believes the market needs to return to some “sane-ness,” and that institutions need to “start to recognize the valuations of some of the mining companies and stocks.”

Here’s why he thinks that needs to happen and what he thinks it will take to bring silver up to $130.

Silver in the future: $130 per ounce?

There’s a significant distance 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 $130, its value would have to increase by over eight times its current value.

Neumeyer sees $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 and came out on top.

He has pointed to repeated gains in the NASDAQ Composite (INDEXNASDAQ:.IXIC) and S&P 500 (INDEXSP:.INX), noting, “billions and billions of dollars are being thrown into these markets, and if the mining sector even got a small percentage of that money it would light up quite dramatically … I think that’s exactly what’s going to happen.”

The First Majestic Silver CEO has also stated that while times have been tough in the mining sector since 2012, many companies have since recovered. He believes investors will see increasing production as cashflow increases and technology infuses the mining sector. Neumeyer also anticipates a steady increase in mining efficiency over the next 10 years, which will be reflected in the value of silver.

Speaking about the current price of silver, Neumyer said it is “a bit of a joke.” He mentioned various other metals that have doubled in price, such as lead, while silver has seen little movement.

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Neumeyer believes the white metal should be uncoupled from gold, and should be seen as a strategic metal due to its necessity in many everyday appliances, from computers to electronics to solar panels. He has also stated that silver production has gone down in recent years, meaning that contrary to popular belief the metal is actually a rare commodity.

According to Neumeyer, “we’re consuming, as a human race, over 1 billion ounces of silver annually, and miners are only producing about 800 million ounces a year, and that’s been dropping for three consecutive years.” He has also pointed to declining grades, making the case for a deficit.

Silver in the future: What others say

While the CEO of First Majestic Silver is one of just a few saying silver is poised to reach a triple-digit price, there is support for Neumeyer’s belief that the metal is undervalued and that “ideal conditions are present for silver prices to rise.” These conditions include low interest rates, overvalued markets and a monetary system overcome with indebtedness. And many are on board with Neumeyer in the idea that mining has entered a bull market.

So, if the silver price does rise, how high will it go? Let’s look at silver’s recent history. The highest price for silver was just under $50 in the 1970s; it came close to that level again in 2011, but has been much lower lately. In 2018, the highest silver has gone is just under $17.60.

In a recent FocusEconomics report, analysts surveyed said they see the white metal averaging $17.80 in 2018, and by Q3 2019, the last quarter for which statistics are given, they believe the average silver price could be as high as $19.20. Overall, it appears as though the general consensus is that silver will increase, but will do so much more marginally than Neumeyer believes unless there is a major catalyst.

Will the price of silver really reach $130? What do you think? Tell us your predictions in the comments.

Don’t forget to follow us @INN_Resource for real-time news updates!

This is an updated version of an article originally published by the Investing News Network in 2016.

Securities Disclosure: I, Amanda Kay, hold no direct investment interest in any company mentioned in this article.

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58 responses to “Could the Silver Price Really Hit $130 per Ounce?

  1. Most definitely silver will hit $1,000/oz. maybe more when the USD collapses; and the US dollar will collapse. The only question is “When?”

    1. It is a joke, silver to be value as it is. Ratio its 11 to 1 with gold.silver should be at less $100.oo and its people rich with power. Who makes people on foot like us to paid the price will they keep on making millions with just paper. Lets stand up. Lets at less make comments that we disagree with this joke of a price for silver.????

  2. Most definitely silver will hit $1,000/oz. maybe more when the USD collapses; and the US dollar will collapse. The only question is “When?”

    1. It is a joke, silver to be value as it is. Ratio its 11 to 1 with gold.silver should be at less $100.oo and its people rich with power. Who makes people on foot like us to paid the price will they keep on making millions with just paper. Lets stand up. Lets at less make comments that we disagree with this joke of a price for silver.????

  3. We could get to $1000 now if every one requested to hold the physical product. When the markets realise the metal is not there price would jump. Even the people who only have certificates could then get the higher monetary cash value. A win win for every one in precious metals except those who have sold metals they don’t physically have. Just got to get the show ball rolling. Its not to late to buy in now and reap the same reward. Just imagine it could be a self fulfilling prophesy

  4. We could get to $1000 now if every one requested to hold the physical product. When the markets realise the metal is not there price would jump. Even the people who only have certificates could then get the higher monetary cash value. A win win for every one in precious metals except those who have sold metals they don’t physically have. Just got to get the show ball rolling. Its not to late to buy in now and reap the same reward. Just imagine it could be a self fulfilling prophesy

    1. Silver prices are controlled by something else. There has got to be a fake market . just like fake News
      Nothing staus at the same value for this long. I make way more money on fishing lures on ebay than silver I’ve had for years. Silver prices are a joke! People say the price will skyrocket when the dollar falls apart. Really who’s going to want it.
      Food, sure! Gas, heck yea. Guns oh yea!
      Even toliet paper. Try wiping your butt with silver eagles. Lol

  5. No chance until the 8 central banks who are all short decide to let the price rise, but why would they ?They have NEVER lost a trade shorting silver ;if that does not prove manipulation I do not know what does

  6. No chance until the 8 central banks who are all short decide to let the price rise, but why would they ?They have NEVER lost a trade shorting silver ;if that does not prove manipulation I do not know what does

  7. Bitcoin tells it all. It has no intrinsic value yet it’s trading above 15k. Who would believe? Once the Bankers are found to be guilty of manipulation and are constrained Silver can follow Bitcoin in its exponential growth. Just sit tight and hold on!

  8. Bitcoin tells it all. It has no intrinsic value yet it’s trading above 15k. Who would believe? Once the Bankers are found to be guilty of manipulation and are constrained Silver can follow Bitcoin in its exponential growth. Just sit tight and hold on!

  9. Yes ,it does depend o the central banks . The only positive sign is the huge physical stack JPM are holding . But what do they intend to do with it ? There is also the question of whether we are in physical surplus ot defecit . There appears to be no reliable statistics about this .

  10. Yes ,it does depend o the central banks . The only positive sign is the huge physical stack JPM are holding . But what do they intend to do with it ? There is also the question of whether we are in physical surplus ot defecit . There appears to be no reliable statistics about this .

  11. JP Morgan has been the main crook batting 1,000 with naked paper shorts, but they have over 600 million ounces in physical. The moment they stop shorting, is the moment silver will skyrocket. Personally, I think silver will reach $1,000 an ounce, and it will happen in the next 12 months. Regardless, silver is the best investment bargain in the world today. If you’re smart, you will start buying some at these ridiculously low prices. No doubt triple digit is around the corner.

  12. JP Morgan has been the main crook batting 1,000 with naked paper shorts, but they have over 600 million ounces in physical. The moment they stop shorting, is the moment silver will skyrocket. Personally, I think silver will reach $1,000 an ounce, and it will happen in the next 12 months. Regardless, silver is the best investment bargain in the world today. If you’re smart, you will start buying some at these ridiculously low prices. No doubt triple digit is around the corner.

    1. We are almost at 12 months you note in your post? What is going to happen JPM appears to have not stopped I wish they would but not happening.

  13. Since the bronze age, gold and silver have been the kingpin of currency in almost every culture, with their value tied not to scarcity but to the politics of their respective era. Look at the 19th and 20th centuries…because of steam and oil power, more gold and silver were available for use and were now available even to the poorest of people and poorest of countries. Biblically, we are told “all nations shall come together” and this holds true even more today as our ability to communicate through the WWW and cellular technology has shrunk our borders. All it will take is a bad twitter comment to come to fruition and silver will see triple digits. But the quality of life will be forever changed for your children and grandchildren. So, yes invest in gold and silver but remember that it is Caeser’s currency and not God’s abundance.

  14. Since the bronze age, gold and silver have been the kingpin of currency in almost every culture, with their value tied not to scarcity but to the politics of their respective era. Look at the 19th and 20th centuries…because of steam and oil power, more gold and silver were available for use and were now available even to the poorest of people and poorest of countries. Biblically, we are told “all nations shall come together” and this holds true even more today as our ability to communicate through the WWW and cellular technology has shrunk our borders. All it will take is a bad twitter comment to come to fruition and silver will see triple digits. But the quality of life will be forever changed for your children and grandchildren. So, yes invest in gold and silver but remember that it is Caeser’s currency and not God’s abundance.

  15. No Way! I don’t ever see silver going anywhere near $100.00 an ounce. I think our recent history of silver — over the last few years — tells the story of how this “precious” metal will continue to perform. If it does go above this price, I’ll be well into my dirt nap…unfortunately for us, we bought silver when it was at it’s peak in 2011, an “investment” I’ve regretted ever since. I’d love nothing more than to dump this worthless “precious” metal…the only thing holding me back from dumping it and moving on is my husband, who has bought into the idea that it will go up and will be worth over $100 an ounce…someday. The concern I have is, if and when “someday” happens, we will no longer be here to finally get our money back! 🙁

    1. I truly do feel bad for you that you bought it at such a high price. But I have a question for you did you by rounds and bars or did you buy coins barbers Etc. If you bought the coins then there is a market that you would be able to get your money back I believe. Just food for thought and I hope that one day you get your money back that you invested.

  16. No Way! I don’t ever see silver going anywhere near $100.00 an ounce. I think our recent history of silver — over the last few years — tells the story of how this “precious” metal will continue to perform. If it does go above this price, I’ll be well into my dirt nap…unfortunately for us, we bought silver when it was at it’s peak in 2011, an “investment” I’ve regretted ever since. I’d love nothing more than to dump this worthless “precious” metal…the only thing holding me back from dumping it and moving on is my husband, who has bought into the idea that it will go up and will be worth over $100 an ounce…someday. The concern I have is, if and when “someday” happens, we will no longer be here to finally get our money back! 🙁

    1. I truly do feel bad for you that you bought it at such a high price. But I have a question for you did you by rounds and bars or did you buy coins barbers Etc. If you bought the coins then there is a market that you would be able to get your money back I believe. Just food for thought and I hope that one day you get your money back that you invested.

    2. There is a second option, but I doubt you would approve, and that is cost averaging. In other words buy even more silver at prices lower than your original purchase price. What this does is brings your average price-per-ounce closer to the current actual price and allows you to reach your break-even price sooner. I for one use this method of buying more as the price falls and stop as the price rises, that my actual cost per once is lower than the current price, and I can get out at any time without loss, but I expect to make money. I think your husband was wise to invest but he got in at the wrong time. That’s OK because silver always has and always will have value, and I think the two of you should seriously consider buying more.

  17. Silver is being hoarded by J.P. Morgan and manipulated as they fill their vaults. Who is to say when they will release their illegal control to make billions.

  18. Silver is being hoarded by J.P. Morgan and manipulated as they fill their vaults. Who is to say when they will release their illegal control to make billions.

  19. Silver is going down due to technological reasons:
    1. In ancient and medieval history Silver was found in proximity to Gold and because of that it was pegged about 10 to 1 because that is what the mining technology of the ancients until medieval times has produce. However today we can produce way more silver than before and we can find it where gold is not and because of that Silver is not pegged to Gold 10 to 1 but 80 to 1 today. We find more and more that silver is not only abundant on Earth but it is not “very” precious since technologically there are “other” very precious metals that we use in our technology and we do not find as much of them as silver.
    2. Gold will always be scarce and identified with wealth so people will need to choose between gold and Silver. They will chose Gold. because of higher value vs. weight = more mobile.
    3. Today there is little money to invest but a lot of choices from digital currencies to stocks to the next “device” craze. The market is stuffed with investment propositions and if you want to get stuck in precious metal you will probably get stuck on Gold or Platinum and such.
    Silver coins, bars is already abundant in the investments vaults so why will anybody buy more and more of this metal? Banks and little people already have a lot of it. Time to sell and buy Gold or other opportunities. Too much silver in the vaults already and not very valuable for too long time now.

  20. Silver is going down due to technological reasons:
    1. In ancient and medieval history Silver was found in proximity to Gold and because of that it was pegged about 10 to 1 because that is what the mining technology of the ancients until medieval times has produce. However today we can produce way more silver than before and we can find it where gold is not and because of that Silver is not pegged to Gold 10 to 1 but 80 to 1 today. We find more and more that silver is not only abundant on Earth but it is not “very” precious since technologically there are “other” very precious metals that we use in our technology and we do not find as much of them as silver.
    2. Gold will always be scarce and identified with wealth so people will need to choose between gold and Silver. They will chose Gold. because of higher value vs. weight = more mobile.
    3. Today there is little money to invest but a lot of choices from digital currencies to stocks to the next “device” craze. The market is stuffed with investment propositions and if you want to get stuck in precious metal you will probably get stuck on Gold or Platinum and such.
    Silver coins, bars is already abundant in the investments vaults so why will anybody buy more and more of this metal? Banks and little people already have a lot of it. Time to sell and buy Gold or other opportunities. Too much silver in the vaults already and not very valuable for too long time now.

  21. So who will sell at $100.00?Would rather have 10 pounds of silver than 1 ounce of gold anyway…never sell below 1000.00 silver is stable though and its gradual increase is less susceptible to wild swings like the Bitcoin fraud,once people wake up than silvers real value will be realized arrr matey fill the chest while it still under-valued.

  22. So who will sell at $100.00?Would rather have 10 pounds of silver than 1 ounce of gold anyway…never sell below 1000.00 silver is stable though and its gradual increase is less susceptible to wild swings like the Bitcoin fraud,once people wake up than silvers real value will be realized arrr matey fill the chest while it still under-valued.

  23. As long as central and private banks short silver and gold on the COMEX, their prices wil move within a narrow price band well below their true market value prices. The only thing that can stop this unlkawful manipulation is war or a global stock market crash. There will be both: such is human nature.

  24. As long as central and private banks short silver and gold on the COMEX, their prices wil move within a narrow price band well below their true market value prices. The only thing that can stop this unlkawful manipulation is war or a global stock market crash. There will be both: such is human nature.

  25. With nearly 80% of silver produced for about 15 cents an ounce as a byproduct of lead, zinc and copper mining why would it ever hit $100? Silver is now just a monkey metal of little value.

  26. I for one can’t see too many ways it stays below $20 for much longer. It’s manipulated and held down from paper trading and shorting… wait for the big bucks to go long and tell me how bearish you feel then.

  27. As paper money becomes more worthless day by day,especially third world countries that are so indebted that they will never will recover,and the western world is running in the same direction.In the coming 2 years there will be so much conflict of war and political up evil that world will be in commotion.The next best thing to silver and gold will be food storage,water and essential items that even gold and silver wont be worth talking about.The world is slowly going into inflation and deflation to the point of no return.Gold and silver will save us to a point and but not in the medium to long term.That was proven in the gold rush days when miners couldn’t get the essentials of life.You can’t eat metal !.

  28. It’s only the *when* question that bothers me. It’s seriously undervalued but has just been going on far far too long! This can only be put down to serious manipulation.

  29. Many here are making a mistake of valuing silver in petrol dollars. The US dollar is an inflationary currency. Silver is deflationary. Compare silver to the amount of goods or other commodities it will buy with its purchasing power. The us dollar continues to lose value while the purchasing power of silver remains constant. The manipulation will end soon. The elites are shaking out the weak hands by suppressing the value and causing frustration, then scooping it up at rock bottom prices. When their coffers are full, they will manipulate the prices in the other direction to maximize their profits. The prices can hardly go any lower. You cant price a metal lower than the cost to mine the physical bullion. The miners would simply shut down causing a shortage until the prices move back up. The same thing is happening in cryptos. The smart money realize the dollar is on its way out. the only way for them to preserve the value of money they have stolen is to convert to cryptos or precious metals. So they tell us that gold and silver are outdated relics and cryptos are going to fail. They say, keep investing in stocks. meanwhile they are suppressing the prices and scooping up digital currency and metals, while waiting for the inevitable greatest transfer of wealth this planet has ever seen. do what the smart money does. Be on the right side of this wealth transfer. Be patient for your loved ones. It will be life changing!

  30. Is this the right time to sell my silver….or should I wait for a few months…. because I can’t wait much longer…..I badly need some cash….what do the experts suggest

  31. when gold $10,000 ounce on reset & headed upwards towards $20,000 ounce, silver will be at least 20/1 ration & more like 10/1 making it EASILY $ 1,000 & eventually headed for PAR with gold since silver in short supply & has far more industrial uses/ applications. Just need patience & children awaiting inheritance. Not brain surg nor rocket sci. relax, stress kills.

  32. It continues to boggle the mind that I’m buying .999 troy ounces at <$15.
    Do people not notice the shift from US per capita income represented as a bell curve prior to 1971 and since then has steadily shifted towards a direct downward linear trend. A "middle class" life in 2018 requires at least $120,000 per year…. and yet some 70% of Americans can't come up with $2,000 within a 30 day time frame…. its sad. Abandoning the gold standard entirely set up this slow motion train wreck.

  33. I keep out of the money call options for approx 12 to 18 month. The cost to control
    100,000 oz at 30$ is 3000$ which currently expires on nov 25 2019. Look into it an educate urself as I think when silver pops it will be a quick upward shit an then settle back when JP Morgan dumps there 750 mil oz. as of today 3k buys 20 30$ calls for dec 2019 A pop up to 50 is very easily done in silver an would profit u 2 mil $ if u hold till 50. A run to 100 makes u 7 mil

  34. The jump up will happen basically overnight when the Chinese and Russian Financial Institutions dump the USD completely. This will crash the US Stock Exchange along with many other western platforms that have tied their currency to the USD, and the biggest western recession ever will force gold & silver through the roof. Check Agora Inc on YouTube and see for yourself.

  35. I am an ex-banker, I know Silver & Gold prices are manipulated, but as with any scam it will eventually fall apart. The price of Silver has been manipulated for past 10 years as JP Morgan took over Bear Stearns huge Silver short position in 2008. It took them 10 year to wind down this huge loss position and turn it into a profit. Hence they have been short selling paper silver while in the meantime buying huge amounts of physical silver. For the first time in history all the commercial banks are now net long in silver, the only shorts are hedge funds (dumb money). Since May of this year (2018) I have been buying physical silver on a monthly basis (Cost-Price Averaging) This is a much beeter strategy than simply buying all at once. Since August I have been buying Silver/Gold mining stocks (Which are at all time lows) as this is the equivalent of buying silver on a margin. When silver increase by 20% these stocks increase by 30% to 100%.

    Buy Silver & Gold now, while prices are at their lows “Be fearful when others are greedy, and greedy when others are fearful”.
    I expect $25 to $30 silver and $1500 gold prices by end of 2019.
    If the big collapse comes then silver should exceed €50 and gold should exceed €2500.

    Don’t say I didn’t tell you.

    “A Banker is a fellow who will lend you his umbrella when the sun shines, but ask for it back when it starts raining”

  36. I’m with dennisc7 I believe the economy has to be bad.Look at cryptocurrency the stock market is generally stable low.There is a crash predicted.But someone has said none of the medals won’t move until 2023.

  37. Yes, Santa Claus is real, and he has a giant sack of worthless paper US dollers to dump. When he does you better have something real like gold; silver, tobacco, alcohol, drugs, food, clean water, and a band of brothers with arms to protect it not only from bandits, but mainly from government confiscation.

  38. Most of you value silver by the dollar?????? The dollar is a volatile fiat currency produced out of this air.
    Its really the other way around. You should be valuing the dollar by silver and as a by product goods and services. When the dollar collapses silver will be used as money again. Monetary systems are for trading labor for goods and services. When the economy restarts you will trade your labor for money and not chickens or bread. Silver is money. Wake up people.

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