Silver hasn’t been trading below the $20 mark for a long time now. After surpassing $50 an ounce a few years ago, the precious metal cratered to where it’s at today: $16 an ounce.
But could silver’s misfortunes change? They very well could, says Keith Neumeyer, the founder, president and CEO of First Majestic Silver Corp (NYSE:AG) in a recent interview with Future Money Trends. In fact, according to Neumeyer, he sees silver skyrocketing to $1,000 per ounce in the event that gold reaches $10,000 an ounce.
Even if silver doesn’t soar to that level, he presently thinks that silver should actually be trading at around $130 per ounce. He notes that since he’s mining nine ounces of silver for each ounce of gold, silver should be much higher than it is today.
“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 gold at $1,200 and silver at $130, $140. 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…”
What about gold? Neumeyer is bullish on the yellow metal and thinks it still has time to significantly increase in the coming years.
“I’m a big bull on gold, I think we’re going to see a major reset of the world… 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… 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.”
At the time of this writing, gold is trading at $1,238.80 an ounce, while silver is trading at $16.36 per ounce. The precious metal family has taken a beating this past month, with gold declining seven percent in the month of May. Due to the Federal Reserve likely raising interest rates this month, investors have been fleeing dollar-priced bullion for yield-producing investments.
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