Is Silver on Track to Reach $100 An Ounce? (2024 Update)
The comments below are an edited and abridged synopsis of an article by Melissa Pistilli, Investing News Network
The silver market is poised for an intriguing future, with many speculating on its potential to reach significant highs. One of the most prominent voices in this debate is Keith Neumeyer, CEO of First Majestic Silver, who has consistently predicted that silver could hit $100 per ounce or even higher. Neumeyer’s belief stems from a variety of factors, including supply deficits, increased industrial demand, and silver’s historical undervaluation relative to gold.
Silver’s recent price history has added weight to these predictions. In 2020, the metal surpassed $20 per ounce for the first time in four years, and since then, it has tested the $30-mark multiple times. Most notably, silver reached a nearly 12-year high of $32.33 per ounce in May 2024. These price movements have rekindled discussions about whether silver could reach the $100 threshold, as Neumeyer predicts.
Neumeyer has held this view for several years, frequently discussing his bullish outlook in interviews. He bases his forecast on several key factors, including silver’s industrial demand, which has grown due to its use in emerging technologies like electric vehicles, solar panels, and renewable energy infrastructure. He also emphasizes the metal’s supply deficit, noting that mining production has not kept pace with demand. In his view, this supply-demand imbalance makes silver a potentially undervalued asset with significant growth potential.
Neumeyer has also suggested that silver could become “uncoupled” from gold, meaning that its price could move independently of the yellow metal. Traditionally, silver has traded in relative tandem with gold, with both metals affected by similar macroeconomic factors, such as interest rates and the strength of the U.S. dollar. However, Neumeyer believes that silver’s industrial importance could eventually lead it to break free from gold’s influence and be viewed as a strategic asset in its own right.
Other industry experts share Neumeyer’s optimism, though few are as bullish. Peter Krauth of Silver Stock Investor has suggested that silver could experience the “greatest bull market of our generation” and has even floated the possibility of silver reaching $300 by 2030. Chen Lin of Lin Asset Management is also optimistic, seeing $50 silver as a near-term possibility due to rising industrial demand and a growing supply-demand gap.
Despite these optimistic projections, there are challenges. The silver market remains volatile, and its price is influenced by numerous external factors, including Federal Reserve interest rate decisions, geopolitical instability, and overall market sentiment. While many agree that silver has strong growth potential, reaching $100 per ounce will require a significant market shift, potentially driven by a combination of industrial demand, supply constraints, and macroeconomic factors.
In summary, while it’s uncertain whether silver will hit $100 per ounce in the near future, the conditions for a substantial price increase appear to be in place. As Neumeyer and other industry insiders continue to point out, silver’s undervaluation, industrial importance, and supply deficits all make it a metal worth watching in the coming years.
