The Coin Analyst: How Might $100 Silver Impact - CoinWeek Can Be Fun For Anyone

Is Silver greatly shorted? First Majestic Silver shares remain amongst the most heavily shorted amongst the mining sector regardless of current brief covering. The stock will go higher with silver, requiring shorts to cover and lifting its share cost. First Majestic reported strong Q4 2020 production outcomes and has launched strong guidance for 2021.

However, widely known figure Keith Neumeyer, CEO of First Majestic Silver (TSX:FR, NYSE: AG), has regularly stated he thinks the white metal might climb up even greater, reaching into the triple digits. "Silver is the only commodity that is not reaching its (historic) highs, and it has reached (those highs) on two different celebrations, back in 1980 and 2011.

Once it breaks through the US$ 50 level, I think that it's going to get approximately the US$ 100 level pretty rapidly," stated Neumeyer in a Might 2021 interview with Kitco. Neumeyer has actually voiced this opinion typically, putting up a US$ 130 price target in a November 2017 interview with Palisade Radio; he did so once again in March 2018 with Kitco and in another Kitco interview at the top of 2020.

In order to much better understand where Neumeyer's viewpoint comes from, it is essential to take a look at the elements that impact the metal's motions, where prices have remained in the past and where other market experts believe silver might be headed. First, let's dive a little much deeper into Neumeyer's forecast that the white metal might break the relatively remote US$ 130 level.

In truth, in order for the rare-earth element to leap to US$ 130, its cost would have to increase from its existing value by 500 percent. Neumeyer sees triple digit silver rates in the cards in part because he thinks the present market compares to the year 2000, when investors were cruising high on the dot-com bubble and the mining sector was down.

It was during this time that Neumeyer himself invested heavily in mining stocks and came out on top. "I've been calling for triple digit silver for a few years now and I'm more enthused now," said Neumeyer at an occasion in January 2020. "But I'm meticulously enthused due to the fact that, you know, I thought it would have taken place sooner than it currently is taking place." The silver CEO's enthusiasm is based upon the reality that governments in the western world continue to print cash and take on enormous financial obligation loads.