Could the Silver Price Really Hit $130 per Ounce?

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

silver in the future

The silver price reached a high of just over $20 per ounce in 2016, but has not made significant gains so far this year. Nonetheless, Keith Neumeyer believes the white metal could reach $130 per ounce.

This isn’t the first time Neumeyer has made a bold silver price prediction. Last year, Neumeyer, who’s president and CEO of First Majestic Silver (TSX:FR,NYSE:AG), raised eyebrows when he predicted that silver could reach a high of $1,000. In a November 19 interview with Palisade Research, he gave a more modest prediction of $130, saying the precious metal is being bolstered by technology along with other factors.

Neumeyer said that 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 the silver price up to $130.

Silver in the future: $130 per ounce?

There’s still 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 seven times what it is currently.

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. He 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 pointed to repeated gains in the NASDAQ Composite (INDEXNASDAQ:.IXIC) and S&P 500 (INDEXSP:.INX), and noted, “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 CEO 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 cash flow 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. He believes the metal should be uncoupled from gold, and should be seen as a strategic metal due to its necessity in many everyday appliances. He also stated that silver production has gone down in recent years, meaning that contrary to popular belief the metal is actually a rare commodity.

Silver in the future: What others say

While Neumeyer is one of just a few saying silver is poised to reach a triple-digit price, there is support for his 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 2017, the highest silver has gone is just under $18.50.

In a recent FocusEconomics report, analysts surveyed said they see the white metal averaging $17.30 in 2017 and $17.80 in 2018; 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 the silver price will increase moving forward, 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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  • 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?”

    • 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.????

  • 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

  • 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

  • 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!

  • 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 .

  • the greatest transfer of wealth is waiting in the wings. Its just a matter of time.

  • 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.

  • 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.

  • 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! 🙁

    • 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.

  • 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.

  • 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.

  • 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.

  • 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.


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