If you've been watching silver, the news you're seeing revolving around the commodity today is quite interesting. Earlier today, Keith Neumeyer of First Majestic Silver Corp was in an interview where he said that silver should be trading between $130 and $140 per ounce and that it could climb as high as $1,000 per ounce. Today, we'll talk about why Neumeyer believes that silver will climb so high, what I'm expecting to see from the precious metal, and how binary options traders can take advantage of the trends.
Keith Neumeyer Sees Big Upside Potential In Silver
As mentioned above, Keith Neumeyer was in an interview today where he explained that he is expecting for silver to grow in value dramatically. In the interview, Neumeyer said that the difference between the gold and silver prices is incredibly unrealistic. For every one ounce of silver, nine ounces of gold are being produced. So, silver should trade at a value that is one ninth of gold's value… This would put silver in the range between $130 and $140 per ounce.
He also mentioned that there is a major financial disconnect around the world. Simply put, the world's leaders know that the world will never be able to pay its debts back. As a result, we will likely see a paradigm shift that sends gold and silver skyrocketing… with silver possibly climbing as high as $1,000 per ounce. Here's what he had to say…
“Right now, for one ounce of gold, we are only mining nine ounces of silver. So that would suggest we should be trading at nine to one, which will put gold at $1,200 and silver at $140. If you look at what we are mining today, that's where silver should be trading at. We are trading at 73 or 75-to-one, and I just don't think that ratio can last… In some of the upper circles, I think it's pretty well understood that the debt in the world is never going to be paid off. We have to have some kind of major reset that's likely going to include gold… I've been quoted many times saying I expect to see triple digit silver, and that's assuming gold doesn't move. If gold goes to $10,000, then silver will be some ridiculous number… could even be $1,000 silver.”
Is This A Realistic View?
While I do believe that silver is going to grow from here, I simply don't see Neumeyer's view as realistic. The reality is that production isn't the end all be all in price. Obviously, demand for gold is higher than demand for silver or there wouldn't be such a disconnect in price. If the world does go through some kind of financial reset, which is entirely possible, silver will climb in value, but it's not likely to climb to $1,000 per ounce.
How Binary Options Traders Can Take Advantage Of The Trends.
As binary options traders, it's our job to spot trends in the market and make trades to take advantage of those trends. With that said, there's a big opportunity surrounding silver at the moment. The reality is that the precious metal is incredibly undervalued, and likely to climb from here. So, binary options traders should be watching the precious metal closely for strong call option opportunities. Any time the value of silver nears support, it's time to act!
What Do You Think?
Where do you think silver is headed moving forward? Let us know your opinion in the comments below!
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