Hideo Nakamura It’s no secret that silver prices have been volatile over the past few years. After reaching highs of almost $50 per troy ounce in 2011, silver prices have slowly declined to just under $21 per ounce. But Keith Neumey, CEO of First Majestic Silver, is predicting a much sunnier future for silver. He believes that thanks to the booming automobile industry, silver prices could reach an impressive $125 per ounce in the medium to long-term. In this article, we’ll explore how this could be possible and explain why now could be the best time to invest in silver.
A Silver Lining
The silver market has been surging lately, with prices potentially set to climb further in the medium-to-long term. Keith Neumeyer, a silver proponent and founder and chairman of First Majestic Silver, is one of the more bullish forecasters, predicting silver prices of $125 to $150 per ounce in the medium-to-long term. He believes that silver’s price will be driven by its increasing use in the renewable energy and electric vehicle (EV) industries.
Silver is a vital component in producing solar panels, as it is able to absorb sunlight to generate power. A single medium-sized solar panel requires 11 grams of silver, while a large solar panel needs 33 grams. With the growing demand for renewable energy, the global solar panel industry consumes an estimated 160 million ounces of silver each year, according to Neumeyer. The EV industry is also growing exponentially, and Neumeyer estimates that it will consume just under 100 million ounces of silver yearly.
Not only are these industries likely to drive up demand for silver but the supply is also decreasing, due to falling deposits and inefficient mining rates. This means that, eventually, the limited supply of silver could cause prices to rise significantly as demand continues to increase rapidly. The shortage of silver could easily be exacerbated by any number of unforeseen events, such as political unrest or economic downturn.
Neumeyer believes that all these factors are aligning for his predictions to become a reality. If this happens, it would make today’s $22 price tag look like a bargain compared to what we could see down the line. However, there is still much uncertainty in the market and any prediction should be taken with a grain of salt. Nonetheless, Neumeyer’s forecast remains an interesting perspective on where silver prices may head in the future.
Keith Neumeyer’s predictions for silver prices of $125 per ounce, largely due to the auto industry, are nothing short of revolutionary. His insights speak to the potential of the precious metal, in terms of both its investment and industrial applications. As investors and industry watchers continue to follow Neumeyer’s lead, we can expect to see the silver industry thrive and reach its full potential in the medium-to-long-term.
