“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.