As silver prices continue to reach successive record highs, some Wall Street hedge fund managers privately acknowledge that the current price is overvalued by more than 30% compared to its fair valuation, yet they are reluctant to exit their positions easily.
A recent article from a Singapore-based media outlet stated that both silver and platinum are expected to outperform gold in 2025, with silver rising 147% and platinum increasing by 127%. The factors driving the silver rally include its inclusion on the US critical minerals list, supply shortages, and robust industrial investment demand coupled with low inventories.
The article also cited a Reuters report quoting Bart Melek, Global Head of Commodity Strategy at TD Securities, who said, "We continue to see market discussions about potential Fed rate cuts possibly occurring in March, and another one later this year. These discussions, combined with concerns over potential tariffs and US debt risks, are driving gold, silver, platinum, and palladium higher."
Some analysts even believe that as US banking institutions shift from short to long positions and incremental funds pour into the market to squeeze short sellers, there remains a high probability that the price of silver could break through $100 per ounce in the short term.
On the other hand, against the backdrop of the Federal Reserve's inclination towards interest rate cuts, whether the CME Group's successive increases in silver futures margins can curb the intensifying short squeeze in the silver market remains to be seen.
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