David Morgan on Silver’s Future
Al chats with the Silver Guru, David Morgan, on the turbulent markets and what it all means for the future of the white metal, Silver.
I believe that we are suffering in a very nasty and cruel correction manufactured by bankers’ lenders. It makes sense that they had to sell their PMs because there other investments are doing very bad. They liquidated what is most liquid.
The metals will rise, without a QE3 or QE,,, Just allow things to play out naturally: The French Banks, The Greek Banks, the US Banks are tied together and one will collapse and create havoc and I hope a mad stampede to metals.
This is what we are hoping in a sick way. So I hope that silver stays at $30 for two months to allow us to load up.
Hi James B,
Your potential scenario of events is logical to me. Let’s see if it, in fact, happens. I think that the odds are favoring this to be the case.
Best,
Big Al
HI JAMES,
What concerns me about your comment is ” I Hope a mad stampede to metals” I thought we were invested in metals because of fundementals. If fundementals do not work we have SPECULATION I did not invest because of speculation People are saying if it goes through this level then this level is next and so on. When it breaks through a lower level it is to late then we hope and pray it does not break through the next level. Isn’t there anybody out there that we can subscribe to that knows what is going on?
Joe
The longer your time horizon, the more you can relax and let the fundamentals assert themselves. Of course, if you are leveraged and/or in juniors, you should never be too far from the action. If you expect to make (and keep!) short term gains, you MUST be technically savvy AND willing to speculate on the actions of governments and central bankers. There is no way around it. To be totally honest with ourselves, we have to also realize that we are speculating any time we “invest” seeking a capital gain. No matter how good and profitable a company is, a gain beyond the dividend is inherently speculative. Juniors without cash flow are therefore, speculations. Those who play the entire sector tend to position themselves for the volatility caused by changes in market psychology, which, itself has other causes. Others position themselves based on the perceived merit of individual projects. Both approaches are speculative. Remember, not all specs are created equal. Gold bullion held for the long term is very low risk. Especially for those who understand the difference between price and value.
Hi Joe,
Maybe I am being too simplistic, but I am pretty convinced that folks are just not sure what to do at this point.
There is are so many unsettling things going on right now in the world that it isn’t even funny.
Maybe in the past the same scenario was going on, but with the speed that information is disseminated today the repercussions of events occur much more quickly.
I think that the uncertainty is what is causing the, for lack of better terms, emotional turmoil that we are experiencing. What I mean by emotional turmoil is the anger that we are seeing in both the U.S.and Europe. (Interestingly enough, I don’t find this to be the case at all in Canada. Kind of interesting, isn’t it!)
You know the human brain can only deal with so many things. If it is consumed by not only the day to day issues of work, family, household responsibilities and also anger towards or at least questioning political issues it approaches overload.
I believe that at that point little ability is left to deal with financial/investment issues. I mean, stop and think about it, probably 80 to 90 percent of U.S. investors don’t even know about precious metals and the associated resource stocks. Those folks are more concerned with paying their debt, keeping their houses, etc. If there are any efforts towards savings at this point they are still focusing on conventional methods because they simply don’t know any better. (Interestingly enough, this is definitely not the case in the Far East where people know about the value of precious metals and they are buying them hand over fist!)
My theory is that when folks start to look at the bigger picture, and they most certainly will, the markets that you and I are interested in will shift from being categorized as being unconventional to being conventional.
Obviously anything can happen, but I give this scenario a good chance.
Best,
Big Al
I echo your thoughts completely. To more than most, gold and silver are regarded as trinkets. Something to wear around a lady’s finger or dangle from a bracelet or another investment competing with Google or TD.
This is not the attitude with the Asian peoples. They know better than to buy Bank of America or Morgan Stanley.
These are precious things placed by a power and intelligence greater than ourselves. It is an exit to this crazy paper system backed by nothing tangible except our belief that it has value.
What the Fed did, long bonds from short bonds could not have, in and of itself, caused this crash. And this was a crash, at least in silver.
I can only hope that it is only temporary.
The banksters of Wall Street have hurt us big time but over the years they have ruined lives in countries dependent on the business activity that precious metals can create, by suppressing the metals so it cannot compete with the US dollar and to make people think that these papers we work so hard for, mean something.
In the end, they must lose .
HI James B,
I just went to the World Gold Council’s site. It is amazing just how much bullion the Chinese, Koreans, etc. purchased during 2010.
Big Al
Great interview and, as always,my thanks for providing a reliable ,quality service.
HI Matt B,
Our pleasure. Remember, we are all in this thing together.
Big Al
AL. I’m with you 100%.
This was a good interview, and a nice follow-up to David’s opinion given on the September 3 KER Weekend Report. Not everyone agreed with David in the comments that day, but he absolutely called it — silver peaking in what was then, just the next couple of days a couple dollars more, and then dropping due to margin calls, and the “seasonal peaking not happening this year”. For what it’s worth, I also sort of like David’s delivery…and that bit about taking physical delivery of 3000 oz from the COMEX at $9/oz…I’d sure like to buy some metal directly from the exchange one day…
HI John W,
Yep, it was a great interview. David is a principled individual who is not in the business necessarily for simple monetary gain. He enjoys his role as a teacher.
Best,
Big Al
Big Al,
I didnt sell anything – I am with IrishTony – in 100%.
HI MARC. Dont rely too much on what i say, remember what they say about the stupid IRISH. hahaha
Hi Al,
Now you’re looking much better and probably taken more seriously. The other two first videos looked like a scene from the Godfather when gangsters bunker down for family wars.
As for investing some other commentaros that you respect say that because there is no QE3 that is the reason for the sell off. It took time for the end of QE2 to have effect. There could be some more downward momentum. I have been asking this several times do we need QE3 for metals to rally? Do not believe that the Asians buy blindly. They might be holding off as well
I believe at this moment we are walking on egg shells. I believe we are at a turning point. Which way it is hard to say. But this volitaly will continue.
Thank you Joe