Huge Upside for Silver Prices?
Silver prices had a solid bull run in the beginning of this year. From January to the end of April, the spot price of silver shot up nearly 30% from $13.82 to $17.89 an ounce. But according to the latest silver price forecast from one industry insider, this could just be the beginning for silver prices.
Keith Neumeyer is the founder, president, and chief executive officer of First Majestic Silver Corp (NYSE:AG). In an interview with Future Money Trends, Neumeyer explained why he believes the silver price is about to shoot through the roof. (Source: “If Gold Hits $10,000, Silver to be $1,000! – Keith Neumeyer, CEO of First Majestic Silver Interview,” YouTube, May 30, 2016.)
It starts with gold.
“I’m a big bull on gold. I think we’re going to see a major reset of the world,” said the CEO. (Source: Ibid.)
He added, “In some of the upper circles, I think it’s pretty well understood that the debt in the world is never going to be paid off. We have to have some kind of a major reset that’s likely going to include gold.” (Source: Ibid.)
The U.S. has the largest amount of gold reserves in the world. Neumeyer believes that for the U.S. to pay off its debt with gold, the yellow metal will need to command at least a $10,000-per-ounce price tag.
Then came the shockingly high price target on silver:
“I’ve been quoted many times saying I expect to see triple digit silver, and that’s assuming gold doesn’t move. If gold goes to $10,000, then silver will be some ridiculous number… could even be $1,000 silver.” (Source: Ibid.)
Neumeyer also said that the current prices of gold and silver do not reflect the rate at which these metals are being mined.
“Right now, for one ounce of gold, we are only mining nine ounces of silver. So that would suggest we should be trading at nine to one, which will put—at $1,200 gold—$130.00, $140.00 silver. If you look at what we are mining today, that’s where silver should be trading at. We are trading at 73 or 75-to-one, and I just don’t think that ratio can last,” argued Neumeyer. (Source: Ibid.)
Note that $1,000 silver means the price of the gray metal would go up by 6,154%. That’s quite a bullish silver price forecast.