Why silver is a bad investment 2019?

9 Simple Techniques For Silver Could Hit Triple Digits - Seeking Alpha

Is Silver heavily shorted? First Majestic Silver shares remain amongst the most greatly shorted among the mining sector despite recent brief covering. This Is Cool will go higher with silver, requiring shorts to cover and raising its share cost. First Majestic reported strong Q4 2020 production results and has actually launched strong assistance for 2021.

Nonetheless, widely known figure Keith Neumeyer, CEO of First Majestic Silver (TSX:FR, NYSE: AG), has often said he believes the white metal might climb up even greater, reaching into the triple digits. "Silver is the only product that is not reaching its (historical) highs, and it has actually reached (those highs) on two separate occasions, back in 1980 and 2011.

Once it breaks through the US$ 50 level, I believe that it's going to get up to the US$ 100 level quite quickly," stated Neumeyer in a Might 2021 interview with Kitco. Neumeyer has voiced this viewpoint often, setting up a US$ 130 cost 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.

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In order to much better understand where Neumeyer's viewpoint originates from, it is very important to take an appearance at the aspects that impact the metal's motions, where rates have actually remained in the past and where other industry insiders think silver might be headed. First, let's dive a little much deeper into Neumeyer's forecast that the white metal could break the apparently remote US$ 130 level.

In truth, in order for the precious metal to leap to US$ 130, its rate would need to increase from its current worth by 500 percent. Neumeyer sees triple digit silver prices in the cards in part since he believes the present market compares to the year 2000, when financiers were sailing high on the dot-com bubble and the mining sector was down.

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It was during this time that Neumeyer himself invested greatly in mining stocks and came out on top. "I have actually been calling for triple digit silver for a few years now and I'm more enthused now," said Neumeyer at an event in January 2020. "But I'm carefully enthused due to the fact that, you understand, I believed it would have taken place sooner than it presently is taking place." The silver CEO's enthusiasm is based on the reality that governments in the western world continue to print money and take on massive financial obligation loads.