Keith Neumeyer, CEO of First Majestic Silver, has previously called for the silver price to eventually hit triple digits. Now, he’s upgrading that forecast. The price he believes is heavily manipulated as are all markets, he says.
“We have two new driving forces which are electric cars and solar panels. These technologies, these businesses, really didn’t exist for the most part a decade ago. Today, I’m even more committed. I’m thinking triple-digit silver…I was always thinking in the low end of that triple digit. But now, I’m thinking it’s possible to get into the higher end of that range,” Neumeyer told Michell Makori, editor-in-chief of Kitco News at the Denver Gold Forum.
He’s buying mines in the USA, bringing silver mining home due to problems in Mexico and Canada. Silver price fluctuates a lot so he’s diversifying into gold. He sees $3000 an ounce as a fair gold price. Silver forecast $100, currently $16.50. He thinks crypto currencies are a bubble.
There are 1.4 billion cars on the surface of planet earth, he says. 90 million cars are sold every year, of which 5 million are electric cars requiring 100 million ounces of silver. In ten years cars will be mostly electric thanks to governments, potentially requiring 2 billion tonnes of silver. Worldwide output is currently 800 million ounces. Then there’s solar panels…and investors. Silver output will not be rising at current prices.
Hydrogen could replace diesel, he says. If it does, hydrogen vehicles are electric vehicles. Silver might be driven much higher in price in the next ten years.