Silver price will rise from $23 to $100? See What the Experts Say

In 2020, the price of $Silver - main 2307(SImain)$ rose above $20 per ounce for the first time in 4 years, and has basically remained above this level since then, even breaking through $26 in May 2023.

However, according to Keith Neumeyer, CEO of $First Majestic Silver(AG)$ silver prices can continue to rise and even touch $100.

It’s not the first time that Neumeyer has been bullish on silver. In the past, he frequently announced a three-digit target price for silver, with the highest prediction that the price of silver would rise to $1,000. Is this an idiot's dream or is there a real basis?

Today we try to analyze it from three angles: factors affecting silver prices, historical trends, and industry insiders' opinions.

1. Why does Neumeyer dare to see the price of silver as high as $100?

First of all, according to the target price of $100, the price of silver will rise by more than 350% from the current level.

• The first reason why Neumeyer is so optimistic is that he believes that the current market cycle can be compared to year of 2000, that is, the large-scale market when the Internet bubble burst and commodity prices rebounded strongly.

• The second reason is a fundamental factor in the silver market, namely the supply gap. He questioned the Silver Institute's supply-side data and bluntly stated that these data-the largest supply glut in the history of the silver market-are fabricated and completely untrustworthy.

Of course, triple-digit silver price expectations are long-term. As far as 2023 is concerned, he expects the price of $Gold - main 2306(GCmain)$ to break through $3,000 an ounce in a few years, while the price of $Silver - main 2307(SImain)$ can only rise to $30. However, given the severe imbalance in the gold-silver ratio, Neumeyer believes silver prices only need a catalyst to take off.

2. Influencing factors of silver price

The drivers of $Silver - main 2307(SImain)$ prices are similar to $Gold - main 2306(GCmain)$ , such as the movement of the $USD Index(USDindex.FOREX)$ and the interest rate policy of the Federal Reserve, as well as geopolitical issues and supply and demand.

• At present, global central banks are still in the cycle of raising interest rates, but voices of pausing or even cutting interest rates have begun to appear, which is positive for silver.

• As for geopolitical factors, even if the Russia-Ukraine conflict ends, many sanctions are expected to remain in place, and silver will continue to benefit from rising safe-haven demand.

• Finally, industrial demand for the precious metal will also be strong in the coming years, especially from new demand created by the transition to renewable energy.

3. Has the price of silver ever rose to $100 in history?

Silver's all-time high was near $50 in the 1970s, and it approached that level again in 2011.

In February 2022, the price of silver rose to a yearly high of $26.46, and in May 2023 it rose above $26 again.

4. What do other experts think about the expected price of silver?

Many experts also believe that silver will have a strong performance in the next few years, but not many expect the price to rise to $100.

• In February 2022, David Morgan of Morgan Report said that he expected the price of $Silver - main 2307(SImain)$ to touch $50 in the short term, but last year's market did not follow this expectation, so he lowered his silver forecast for 2023.

• Matt Watson, founder of Precious Metals Commodity Management, also believes that $Silver - main 2307(SImain)$ silver prices have the ability to rise to $50, but this is a longer-term forecast, and the premise is that silver is more inclined to industrial metals, especially from electric vehicles, solar photovoltaics and electronics industries. Rising industrial demand.

• Lobo Tiggre, founder and editor of IndependentSpeculator.com, also took a similar view, saying that the biggest driver of future silver price increases is not safe-haven demand, but industrial demand.