The Markets Are Not Responding Correctly to Potential Repo Disaster Brewing

This repo thing is scarier than it looks and yet, the stock market continues to make new highs. I'm just repeating back what you said, but fundamentally all those facts should lead to higher precious metals' prices and they don't. And why is that? And the reason being, as almost anyone that's ever listened to me or any most people on your show would say, look, it's the paper paradigm that runs the futures markets. And that's how the prices determined. And until that is broken enough for the market to settle based upon the physical market, you have the ability to basically control the price more or less.

And that's unfortunate. People hear that and they get discouraged and he said, well, you know, why fight the Fed? I'm just going to be in the stock market. I don't want to be the metals. But as we said in the last segment, it's important to be prepared for what the eventuality is because nothing grows to the moon. The Fed Is not all mighty, even though it might seem that way at times, and we're getting near the end. I do believe, I know that's really tough to time, but I can't see it going on much longer. Our debt is so high relative with the interest payments are, and this is with low interest rates. If interest rates get pushed higher as I outlined a moment ago that it's more and more difficult to service the debt. So, no, the fundamental facts have probably never been more important for owning some precious metals.

And yet the market is just worn out. I mean it was a six year trading range for gold. It finally broke above it. It went up rather significantly. $200 on a $1,350 is a pretty good move given up half of it and it's taken awhile, and people say, “Ah, that's it.” And it would comment, and of course you could comment on my comment because as you know Mike I talk to many of the wholesalers and retailers in this marketplace and most of the bigger ones as well… and I was told by one rather significantly sized retail dealer that they were getting a four to one ratio, meaning they were buying back from retail, not on the wholesale side, about four times as much gold as they were actually putting through the door. So, most of this move has been based on the bigger money, in other words the ETF's, hedge funds, banks, you know China, that type of thing.

- Source, David Morgan via FX Street

David Morgan: The Silver Chart Tells Me That Silver Will Push Much Higher

David remains convinced that we remain in a bull market for precious metals that began back in 2015. 

Gold remains well above its breakout level of $1350, but silver is struggling below $17. In addition, there is further resistance to overcome between $19 and $21.

- Source, Palisade Radio

David Morgan: Here’s Why You Must Protect Yourself Outside the Financial System

I think there's probably more so on the head. I mean, it's possible that we get a lift here to do a fake out from the longs, but I don't like the structure of the Commitment of Traders. Silver hit about a three-and-a-half year high, which hit $19.65 which I believe was the top of this spot market. And we've had several instances over the last six, seven, eight years where the last day of trading was the low pick for the year in the metals. Traditionally they start moving up the end of the year, but that's not been the seasonality for many years now. So, I think we're going to drift off lower. It's possible that the bottom is in, I called the four about a $1,450 on gold, about a 50% retracement from the $200 move that went from $1,350 to $1,550 when it finally broke that six year trading range and it's done that. But yet in looking at the CoT, I think we probably going to see lower before we see higher.

I mean we're facing something that's really never been, taken place in monetary history at least what we know of recorded history, and we're seeing the demise of the age of empire. I mean basically everything was built on this system, on money and the money system is actually designed to fail from the start. You cannot have infinite interest rates. And what it mean by that is the, the exponential function, the compounding of interest over and over and over again. They'll go to infinity eventually. So, we've had adjustments and certainly some very big problems throughout monetary history. I mean there's several that we can name. The point is, I don't think it's ever been one of this breadth and scope where basically you know that 7 billion people on the planet and very few will come out unscathed. It's certainly not the end of the world, but there will be an adjustment and how big how hard and how long that adjustment is, no one really knows.

I think the main thing to do is to one, not panic and to realize that all the wealth stays in place. I mean all the agriculture, all of the oil fields, all the buildings, they're all still there. But what takes place in a financial adjustment, a currency reset, any words that you want to use, is that the ownership changes basically. So, you have a lot of people that might be over leveraged, and the over leverage will take them out of the game so-to-speak. So, real estate investor that's on the margin, that's very leveraged, waiting for, let's say hyperinflation to bail them out may have made the wrong bet. There will be deflationary forces. It's inevitable because of the way capital markets are set up. So, when the bond market starts to fail, interest rates will start to be pushed up and that will decrease the value of the bonds.

And since they're so massive and so widely spread out among the financial capital markets, they basically touch everything… pension plans, retirement savings, savings, even money markets, everything is basically touched by the debt markets. There's nothing that really could escape it. So, this is something that had my eye on for years and I've always stated that, watch the bond market that holds the keys to the kingdom and the bond market really starts to be questioned for its ability to not just pay the interest, but what is the real value something that can never be paid off, i.e. the national debt? Then at some point you'll probably start to see some movement in the bond market. I think of what happened in my lifetime. I don't think we've got another five years, but people such as myself and others before me have made statements similar to that and then they're wrong in their timing, and it's very difficult to say when.

In fact, I was listening to a podcast this morning because I try best to stay up on all of this and his forecast was like 2047 and I forget how it came up with that number, but it never hurts to be early. And as the markets twist and turn the least valued assets right now, particularly silver and gold, somewhat relative to the S&P, the DOW, the real estate market or anything else. So, both metals are undervalued, particularly silver. So, when you buy something undervalued and add it to your portfolio or balance or rebalance your portfolio is something we really should consider.

- Source, David Morgan via FX Street

Russia And China Are Buying Gold, Not Bitcoin

David Morgan: Globalization Isn’t Dying, It’s Just Evolving

Globalization is a force both more powerful and ancient than Trump. Too often we think of it of economic integration and the exchange of ideas, people and goods that comes with it as a recent phenomenon. 

The reality is it has been with us since the dawn of time. But we are entering a new era in which data is the new shipping container and there are far more disruptive forces at work in the world economy than Trump’s tariffs.

- Source, David Morgan