Thursday, January 30, 2014

The Fundamentals for Gold and Silver Have NEVER Been Better

The reality is, look, silver is volatile. Silver is much more volatile than gold. And, I think the correct approach to any market is to understand that market. I feel I have a pretty good feel for the silver market, and I’m sure several would agree and probably some that would disagree.

Regardless, I said look, the best way to do well in this market is, and this is from my personal take, to know ahead of time what’s going to take place and never miss a trade. That’s impossible. That’s not realistic. Is to look at when it’s overvalued and that type of thing to sell a portion of it and hedge your bets kind of thing.

So, that’s the approach that I’ve taken all the way through this market. The only regret I might say is when I did get out at the top in the end of April 2011 I didn’t keep rolling that over again and again and again as I probably could have. But, what’s done is done. Reality is fundamentally it’s actually never been better to get into the gold and silver market as it is right now.

- Source, Sprott Money:

Tuesday, January 28, 2014

You Can't Eat Your iPad

Food doesn't become unpopular. It’s a requirement. Clothing can be superficial, obviously, but the root basics are that you need food, shelter, water, et cetera. So, that means generally the commodities sector is a place where we need to have things.

Whereas the greater iPhone or greater iPad… I own them both. I don’t want to be a hypocrite here. But, the stuff that we don’t necessarily need to survive is things that are going to have a problem. I want to be a little more succinct on that. I think the idea was really that anything that’s based on leveraging borrowed money is something to be very leery of. Housing, I think, is a perfect example.

Basically my big push was, in the early 2000′s, to not only get into hard assets and the commodities sector generally speaking and out of things that were debt based. So, if you had mortgages that were debt based of course this was counterintuitive. Because almost everyone said David if you’re saying there’s going to be money printed inflation, inflation will bail me out.

Yes, that was, was in the past, true during the inflationary 1970′s and up to 1980′s, and I lived through it. But, at that time we didn’t have China as a competitor. We didn’t have people that were willing to work for $2 per day. As we’ve seen, the labor force has basically been decimated in North America and moved into the east.

That means that this what we used to call incorrectly cost push inflation that gave everybody a cost of living adjustment and allowed them to let inflation bail them out, borrow money, and invest it, and then inflation would make you smart, that was gone. People had a really tough time getting that message out. I probably didn’t do as good a job as I would’ve liked to.

This is not about being right and wrong. This is about thinking about the reality of the world that we’re living in. My take was to go ahead and just be like a cash only investor. Not that I don’t use leverage and derivatives, because I do. I want to be clear. But, I do it in a rather conservative way, and I always have stops on.

In other words, I protect myself. And, a lot of times at this point it’s, like, covered. In other words, I can sell or rent my silver, or gold, or whatever for a certain length of time, and if I’m wrong it’s already covered because I own the physical reality of that.

So, it’s not like I’m playing with something that doesn’t exist. I’m “playing” with a portion of something that does exist. A lot of times in this market of being down for the last few years, it’s been a prudent thing to do actually, because unfortunately this market still looks like it’s struggling to find an exact bottom.

- Source, Sprott Money:

Sunday, January 26, 2014

The United States is Living a Lie!

David Morgan from The Morgan Report chats with Cambridge House Live's Bridgitte Anderson at Vancouver Resource Investment Conference 2014 about his take on where America is going and why. He believes the country is living a fiscal lie (ie: quantitative easing) and will eventually pay for it's sins by 2016. A must-watch!

- Source, Cambridge House:

Monday, January 20, 2014

2014 Will Be a Good Year, But Not a Great Year

"I am anticipating a good year (2014), but not a great year. I think we have seen the bottom — probably bottoming as we are doing this interview in December. I actually think that the bottom was hit in silver at the end of June 2013, perhaps gold at the $1179 mark. But as far as I am concerned done with that but it's not going to just rock it up in 2014 in my studied opinion, but we will see the base built and start moving up. Barring a black swan event, which I am certainly not ruling out — I am looking for gold in the $1700 range, maybe that high and silver in the $30 range or maybe be a bit higher sometime during the year..."

- Source, Investor Intel:

Saturday, January 18, 2014

David Morgan's 2014 Forecast

David Morgan, Founder and Editor of and bi-monthly feature Editor on InvestorIntel was just ranked #3 in the Newsletter Writers of the Year is interviewed by the Publisher and Editor-in-Chief of InvestorIntel Tracy Weslosky. Tracy asks David what he thinks we should expect in 2014 after his reply to his favorite highlight of 2013 being a tough question as it was overall a 'miserable year' for investors. This said, he does point out that the most eventful incident occurred when Germany asked for their gold back from the Federal Reserve and being told that this would take 7 years was indeed, a highlight.

- Source, Investor Intel:

Thursday, January 16, 2014

Tuesday, January 14, 2014

Has the Economy Already Gone Over the Cliff?

Do I believe that we’ve gone over the cliff or not, and is there turning back? Really a tough one, so opinion only. I’ll preface it one more time, opinion. But, you asked my opinion.

I think we did go over the cliff. I think we went over the cliff in 2008. I think that everything that’s happened since then has been a backing and filling and, as you call it, MOPE, where the perception of reality is being managed as carefully as possible by the mainstream media that we’re back on track and everything’s going to be okay.

But, the reality is, the factual truth is that these banks have been reliquified but at the expense of the population. Because when the federal government borrows money in any country it’s only based on the productive capacity of the citizens to pay back what they borrowed. I mean they don’t come to you and ask you if they have the right to borrow more money and if it’s okay if you have to lower your living standard to pay it back in the future, do they? No. They just go ahead and do it. So, that’s the reality. The banks are being brought back to life, so to speak, at the expense of the populace regardless of the nation state we’re talking about.

And that derivatives problem that took down the 2008 financial crisis… It really is 2007. But, I don’t want to get too technical here. It manifested in 2008 and has only gotten bigger.

The banks have gotten fewer. So, the problem has gotten actually worse rather than better. Not to say that if there was another 2008 that these banks aren’t liquid now, because a lot of them are. They’ve got more fiat to buffer the situation.

But, no, the reality is that nothing has really changed. It is over the cliff. And, it’s sort of like the cartoon. I might lose some people here. I forget the name of it. I think it’s called the Road Runner or something. There was this Wile E Coyote, and he’d run over the cliff with this anvil or something. Then, it would be suspended in mid-air. Then, he’d look down and realize there’s nothing below him, and that suspended animation would break away to reality. He’d fall a mile down or whatever and crash into the ground.

That’s sort of my take on it. We are at a situation where we are over the cliff, yet we’re in this sort of suspended animation managed perception that everything’s okay, we’re back on track, look at this, and look at that. Not to say that there aren’t areas that are doing better than they were. Certainly, there are. But, not in such a significant way that we’re really coming out of this.

- Source, Sprott Money:

Sunday, January 12, 2014

David Morgan - Silver vs Gold

Silver bug David Morgan advises to buy both silver and gold, but thinks that silver is the underdog with more upside as well as volatility.

Friday, January 10, 2014

David Morgan's Belief on Bitcoin

I’m free market. I think if you want to do the Bitcoin situation, do it. I mean I’m not going to tell anyone how to run their lives.

There are a lot of advantages to Bitcoin as a fiat system over the current one. But, the only truth that concerns me somewhat is that it is not a specie currency. In other words, it’s not a tangible money, just like gold and silver are.

If you take a worst case scenario as a thought experiment and you look at everything that takes place in the financial world, it’s basically a bunch of digits moving around. When I sell a stock on the Internet it’s basically a code that goes to the ebroker that sells the stock and puts the digital money into my account, and I get a statement at the end of the month.

So, if anything were to happen to that process either electronically… In other words, if there were some kind of electrical failure in one part of the country or whatever, or there were some natural CME event, or whatever, if something like that happened there’s no way to escape out of the system.

Whereas physical gold and silver are about as basic as you can get and historically for thousands of years. So, that is a wealth, as long as you can go touch it, that really is preserved forever and ever until you either spend it or pass it on to a family member, or trust, or whatever.

I am an advocate of fund freedom. If you want to do the Bitcoin thing, great. I kind of like Jeff Berwick, The Dollar Vigilante’s take. I think he’s an advocate of doing both. I’m okay with that.

I thought about getting into it to be able to take subscriptions in Bitcoin, because I have something that I can market and then take those Bitcoins and deploy them into something that I need for the business or whatever. But I think it’s a little overdone. I know it’s limited.

I think the market will decide. The markets usually decide these things. It looks to me as if it’s in a bit of a bubble. I’m usually pretty good at calling tops, although I’m usually a bit early, and I learned that the hard way. I’d rather sell early into a bubble than late, because once it has peaked it’s really hard to get out at a decent price.

I love to sell into strength, and that comes from a very strong commodities background. If you look at my trades in the silver market, I’ve caught every top on the way up. I caught the $8.50 or $8.60, I forget the exact number, top which was just way, way back in the beginning, then the $21 top and the $48 top. I sold into strength in every one of those.

I don’t really look at Bitcoin that much, but buyer beware. That’s what I would say. Buyer beware. Do your own research. Make up your own mind.

I think there will be some kind of hybrid system at some point. There probably will be some kind of electronic currency.

And, there’s one now, really, that’s kind of similar to that, and that’s a silver and gold backed debit card that a friend of mine has started here in Spokane, Washington where I am. That is certainly not going up like Bitcoin. It’s based on the price of precious metals. But, it’s precious metals backed and it’s also electronic, because you can go into a merchant with this card and it’s transparent to the merchant. They just swipe the card and get the information off of it, and you’re debited either on the cash side of your account or the precious metals side of your account.

I think that’s a little bit more practical than the Bitcoin. But, I don’t want to speak too much about it. I’ve already probably said more than enough, because I’m not that familiar with the internal workings of the Bitcoin system.

- David Morgan via a recent Sprott Money interview:

Wednesday, January 8, 2014

Are Precious Metals Being Manipulated Lower?

I do believe they are. If you take a hypothetical example, you could go into the futures market and sell short for, let’s say, several million dollars and move the price down $20, $30, $40. Then, turn around and go into the physical market and buy it and save yourself maybe ten times as much real money or cash that you used to move the market down.

As interesting as that sounds, think about it. Where has the flow of gold been going? It’s been going where? It’s going from west to east. It’s going from the Anglo-American access to the new big kid on the block, and that’s Chindia as Frank Holmes says, China and India primarily. Russia’s involved, so are the BRICS (Brazil, Russia, India, China, South Africa). That is the obvious truth.

The manipulation thing is very difficult to prove. Nonetheless, I think it’s very interesting that if you look back at Adrian Douglas’ work from GATA, he showed the LBMA and what the open and closing prices of gold was historically over years and years and years. And, it’s fundamentally impossible to have that kind of delta year over year, day after day, and not be manipulated.

There’s no random walk that could ever account for what’s taking place in reality. I think that’s strong enough proof. That would be one of the most important arguments to bring into a court of law.

You could get a bunch of mathematicians that don’t have anything to do with the precious metals market and ask them what the probability of that kind of a spread between the open and the close in one market, and gold is, and to verify that the probability is so astronomically impossible that that proves beyond a shadow of a doubt or beyond a reasonable doubt that it’s manipulated.

But, I think we should move on. I don’t mind talking abut the manipulation. Let me add one more thing, and that is the idea that a lot of people have, or my perception that a lot of people have are, “I’m staying away from the market, it’s manipulated”.

Number one, almost all markets are manipulated. So, get over that. Number two, that the one market that will probably blow up before any others would be the gold or silver market, and it looks like it’s gold. I mean the idea that Germany wants its gold back from the Federal Reserve of New York and it cannot get it for seven years, is right in your face. Something is drastically wrong with the physical gold market.

- Source, Sprott Money:

Monday, January 6, 2014

Silver is Now Under the Cost of Production

In his latest interview, silver guru David Morgan discusses why the current price of silver (sub $20) is not sustainable for primary silver mines as we are UNDER the cost of PRODUCTION!

- Source:

Saturday, January 4, 2014

Do Your Own Homework and Verify for Yourself

You’re at risk in everything in life. Let’s be adults here. Things happen in life. But, when we’re talking about your life’s savings, or part of your savings, or whatever, it’s something to consider. It’s something that I think that you, the listener or the reader of this, should pay attention to.

Educate yourself. I like the idea of listening to others and verifying for yourself. Verify these things. Just because I write it and I have high integrity doesn’t mean, 1) I don’t make a mistake or, 2) oh it sounds Dave’s too far out there or whatever. No. Investigate. Research. Do your own homework and verify for yourself. After all, it is your money.

- David Morgan via a recent Sprott Money interview, read more here:

Thursday, January 2, 2014

Ask The Expert - Gold, Silver, Bitcoins and Manipulation

In the latest episode of Ask the Expert. We delve into the thoughts of the legendary silver guru, David Morgan.

David Morgan is a widely recognized analyst in the precious metals industry and consults for hedge funds, high net worth investors, mining companies, depositories and bullion dealers. He is the publisher of The Morgan Report on precious metals, author of Get the Skinny On Silver Investing, and featured speaker at investment conferences in North America, Europe and Asia.

Throughout the course of this interview David covers some incredibly serious topics that investors in the precious metals community are currently facing. Also we get David’s thoughts on the latest phenomenon, Bitcoins. Below are some of the major topics that we discuss throughout this lengthy interview:

  1. The nomination of Janet Yellen as new FED Chairman
  2. Quanititive Easing to infinity
  3. Ongoing manipulation in the precious metals markets
  4. David Morgan’s personal views on the rise of Bitcoin
  5. The rise of China’s Yuan
  6. His predictions on gold and silver going into 2014 and onward

The above mentioned topics are just a few of the many covered. As always David gives a powerful interview and covers many topics you aren’t likely to hear on the main stream media. Enjoy!

- Source, Sprott Money Blog: