Silver price reaches “high ranges” in the three-digit range; Not enough on the planet to meet demand – Neumeyer
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(Kitco News) – Keith Neumeyer, CEO of First Majestic Silver, previously called for a three-digit silver price. Now he’s improving that prognosis.
“We have two new driving forces, namely electric cars and solar modules. These technologies, these businesses, did not even exist ten years ago. Today I am even more committed. I think three digits. “Silver… I always thought at the lower end of that three digit range. But now I think it’s possible to get into the high end of that range, “Neumeyer told Michell Makori, editor-in-chief of Kitco News at the Denver Gold Forum.
Monetary stimulus, along with the depreciation of the US dollar, should help gold, which in turn would provide tailwind for silver, but Neumeyer noted that silver has a solid future regardless of monetary policy given its demand and supply fundamentals.
What is important is that silver production is simply not enough to meet long-term growth in demand.
“As a mining industry, miners produce about 800 million ounces of silver annually. If you look at electric vehicles, the world is going to consume about 100 million ounces this year. If you look at solar panels, another 100 million ounces. So you have two industries that are more Consume than 10% or almost 20% of world production. Above-ground supplies are running out very quickly. The deficit continues. Where does the silver come from? ” he said.
Neumeyer’s comments come because governments around the world including the UK, New York State and California have set deadlines for stopping sales of internal combustion engine vehicles.
“The automotive industry produces 19 million cars a year worldwide, including 5 million electric cars,” he said. “So if you want to replace every internal combustion engine car in the world, let’s call it 2030, 2035, let’s call it 2040, then how are you going to replace a billion cars at the rate of 5 million cars a year? Where does all that silver come from? Do the math. For every 5 million cars you need 100 million ounces of silver, so it’s easy. There isn’t enough silver on the planet to meet government requirements, “he said.
Check out the video above to see Neumeyer’s thoughts on Bitcoin, as well as updates on First Majestic Silver’s latest projects. Follow Michelle Makori on Twitter: @Michelle Makori
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure the accuracy of the information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is for informational purposes only. It is not an invitation to exchange goods, securities or other financial instruments. Kitco Metals Inc. and the author of this article assume no responsibility for any loss and / or damage that might arise from the use of this publication.
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