The silver price will reach triple-digit figures in the long term buoyed by supply and demand, Mexico-focused miner First Majestic Silver (TSX: FR, Amex: AG) CEO Keith Neumeyer said in a call to discuss Q2 financials.
While it seems "ridiculous" to predict US$100/oz-plus prices when the current figure is close to US$21/oz, "I honestly believe that it's going to occur," Neumeyer said, with silver set to resume its upward trend.
All commodities "will revert to a supply and demand trend," he told the call, and for silver the supply and demand outlook is "extremely good" with new uses continually being discovered.
"[Silver] is a strategic metal and it's one of the most important that we use as a human race," Neumeyer said.
Silver closed at US$21.46/oz on the London Bullion Market on Tuesday (Aug 13), up from the previous day''s US$20.835/oz, but down from the 2012 average of US$31.15/oz.