‘Fantastic Opportunity’ in Silver: Gold Mining CEO

Australian gold miner, Kingsgate Consolidated, reported an almost 200 percent jump in profits for the second half of 2011 on Wednesday, boosted by robust sales of the precious metal. But, the company is planning a bigger push into silver in the coming years, according to the CEO Gavin Thomas.

“Silver is a fantastic opportunity…I see there’s a lot of upward price (for the metal), because of the lack of supply,” Thomas told CNBC on Wednesday, adding that silver could rise to $50 per ounce over the next 24 months.

Supply of sliver is under pressure because, lead and zinc mining, which silver is a bi-product of, is becoming less prolific, Thomas said. At the same time, he notes that demand for silver is increasing as medical and industrial uses for the metal are discovered and investment interest from India and China rise....more