“Silver prices are trading almost 25% below the values predicted by our price model,” according to Stefan Wieler, Director at Goldmoney.

“This is the largest downside deviation we have seen in over 25 years.”

Wieler believes this is the result of massive short selling in the futures market. In order to maintain this downward pressure on silver, speculators would have to continue to sell over 500 million ounces of paper silver per year.

He explains to Daryl Jones, Hedgeye Director of Research why a reversal of this positioning could lead to a 30% or greater rally in silver prices.

*For deeper insight click here to read Wieler’s recent article on silver prices.


You're Leaving Hedgeye Risk Management...

By selecting this link, you are now leaving the Hedgeye Risk Management (“HRM”) website. The following website contains information concerning investment products managed by Hedgeye Asset Management (“HAM”), an affiliate of HRM, or a firm partnering with HAM, and is subject to HAM’s Privacy Policy. As a separate legal entity, all HAM asset management services are made independently by portfolio managers at HAM and, as such, funds may vary from HRM research.

HRM is not responsible for the accuracy or completeness of information on external websites. HRM does not make any representation regarding the advisability of investing in any investment product or any particular investment advisory. Any opinions or recommendations from linked websites are solely those of our affiliate and are not the opinions or recommendations of HRM.

HRM DOES NOT PROVIDE PERSONALIZED INVESTMENT ADVICE OR ENGAGE IN ANY ASSET MANAGEMENT SERVICE. LASTLY, THIS LINK IS NOT AN OFFER TO BUY OR A SOLICITATION TO SELL ANY SECURITY OR INVESTMENT PRODUCT, OR THE SOLICITATION OF ANY ADVISORY SERVICES.