The silver price reached a high of just over $20 per ounce in 2016, but has not made significant gains so far this year. Nonetheless, Keith Neumeyer believes the white metal could reach $130 per ounce.

This isn’t the first time Neumeyer has made a bold silver price prediction. Last year, Neumeyer, who’s president and CEO of  First Majestic Silver (TSX:FR,NYSE:AG), raised eyebrows when he predicted that silver could reach a high of $1,000. In a November 19 interview with Palisade Research, he gave a more modest prediction of $130, saying the precious metal is being bolstered by technology and impending cash flow.

Neumeyer said that market needs to return to some “sane-ness,” and that institutions need to “start to recognize the valuations of some of the mining companies and stocks.” Read on to find out why he thinks that needs to happen and what he thinks it will take to bring the silver price up to $130.

Silver in the future: $130 per ounce?

There’s still a significant distance to go for silver to go before it reaches the success Neumeyer has boldly predicted. In fact, in order for the silver price to jump to $130 an ounce its value would have to increase over seven times what it is currently.

Neumeyer sees $130 silver in the cards in part because he believes the current market compares to the year 2000, when investors were sailing high on the dot-com bubble and the mining sector was down. He thinks it’s only a matter of time before the market corrects, like in 2001 and 2002, and mining sees a big rebound in pricing. It was during this time that Neumeyer himself invested heavily in mining and came out on top.

He pointed to repeated gains in the NASDAQ Composite (INDEXNASDAQ:.IXIC) and S&P 500 (INDEXSP:.INX), and noted, “billions and billions of dollars are being thrown into these markets, and if the mining sector even got a small percentage of that money it would light up quite dramatically … I think that’s exactly what’s going to happen.”

The CEO also stated that while times have been tough in the mining sector since 2012, many companies have since recovered. He believes investors will see increasing production as cash flow increases and technology infuses the mining sector. Neumeyer also anticipates a steady increase in mining efficiency over the next 10 years, which will be reflected in the value of silver.

Speaking about the current price of silver, Neumyer said it is “a bit of a joke.” He mentioned various other metals that have doubled in price, such as lead, while silver has seen little moveme