Why Silver Will Reach $130 And Gold $8,000 Per Troy Ounce

Above: Why Silver Will Reach $130 And Gold $8,000 Per Troy Ounce.

Is 2018 the year of the silver rally? Keith Neumeyer, CEO of First Majestic Silver Corp., thinks so and expects the metal to climb eightfold over the next 3-5 years. He says silver is a story of supply and demand: β€œto go green, to do all the things we want to do as the human race gets off oil and gas, we need a ton of silver.” He says that unlike gold, silver is a strategic, rather than precious metal, and should trade closer to its mine ratio. β€œ[First Majestic] is currently operating at a mine ratio of 9 ounces of gold for every ounce of silver, so silver should be trading at around 9:1.” Currently, the gold-to-silver ratio stands at around 76 and that is why Neumeyer says he sees silver prices headed for $130 an ounce.