With gold and silver hammered again Friday and gold briefly breaking below $1100, Silver Expert David Morgan joined the show, discussing:
1. 5 MILLION oz Retail Silver BACKLOG Morgan Breaks Down Physical Market: Shortage in the Wholesale Market, or Just in Retail? 2. At What Point Does the Retail Market Put Stress on the 1000 oz Bar Market? 3. Funds Attempting to Trigger $1070 Stops, Send Gold Towards 3 Figures 4. Closer to the Edge of the Cliff- "At Some Point, Something's Going to Give!" 5. Shemitah Week is HERE: Is the BIG ONE on the doorstep? Eric and David weigh in
David Morgan provides a silver market update, plus the main problem America and the world has is what Morgan calls “the debt bomb.” He says the debt is at the center of the black hole of our problems. Morgan explains, “We are reaching a limit. All systems reach a limit. No tree grows to the sky.”
In March, Morgan predicted September as a time of increasing turmoil in financial markets and thinks it’s downhill from here. On the continuing turmoil, Morgan says, “It will be ebb and flow, but the trend is increasing, increasing and increasing. It will, unfortunately, in my strong opinion, it will get worse before it gets better.”
The current gold-silver ratio implies to David Morgan is that silver is presently undervalued relative to gold.
According to Morgan the Gold-Silver Ratio is telling us something else that is important.
"If you have a real economy with sound money you get a deflationary trend. This means your money is worth more over time. It is beneficial to almost everybody. Silver is the best inflation edge and not the best deflation hedge. Gold is the best deflation hedge. Silver anticipated this huge inflationary environment back when QE2 was announced and moved from $26/OZ to $48/OZ. What happened was all that anticipated inflation didn't get into the market place because all the increased debt only resulted in re-liquifying the banks. They forced the money into the banking system and not out into the public sector."
David believes silver is currently a better buy than gold. He still believes silver will outperform gold.
"We are not out of the woods. There is a place for precious metals in your portfolio. 20% for "metal bugs" and 10% for the average public."
Many believe that rising interest rates will hurt gold. David fully expects the Fed to increase rates but sees it as being nothing more that "showmanship". David suggests that:
"his experience shows that it is when REAL RATES get positive that you COULD see gold impacted from an increase in interest rates"
"What you really need to know is what are the real rates versus nominal rates which you see iin the newspapers."
Keeping interest rates low is central to debt ridden governments surviving. Acording to David Morgan the government must keep rates low as long as possible but believes a reset of some sore is inevitable. David sees the mechanics and policies of keep rates repressed as fundamentally defining Financial Repression.
Financial Repression is like a big coffee press, pressing everything down and has suppressed the ability for us to have a free market and thereby enjoy the fruits of our intellect, labor, creativity and purpose as humans."
Jeff Berwick interviews silver market expert and veteran David Morgan, topics include: the equity markets are very topped, Sept/Oct could well be a major break...
Listen to this tremendous and fascinating interview with David Smith of The Morgan Report, and regular contributor to MoneyMetals.com. David recently joined Money Metals president Stefan Gleason to talk about investment psychology, how you can discipline yourself to be a successful investor and what he sees ahead for the precious metals.
David Morgan studies, history and how it relates to the unfolding Greek drama that is causing so much turmoil throughout the financial world today. This is not going to end well.
David Morgan of Silver-Investor.com joins me to talk about the possibilities of capitol controls, bank runs and hoarding of resources happening in the US to the same degree that we are seeing it in Greece. We discuss why Greece is collapsing and what you can do to prepare for the coming chaos, here in America.
Get ready for the most level-headed approach to everything silver! Is there silver manipulation? Well kind of. Does the Gold-to-Silver ratio matter? Yes, but no. Will the stock market crash in September? David certainly thinks so!
Earlier this year, economic expert David Morgan said he thought there could be another economic meltdown this fall, and he’s not backing off. Morgan explains, “Part of it is the seven year cycle in the stock market, and seasonality plays strongly in both the metals and stock market. September/October is the time frame where you get a falloff. The stock market is so overvalued it has no relationship with physical reality.
The physical economy does not match what stock prices are at all--not even close. . . . The mainstream media keeps saying things are good and all people have to do is look out their window. There is a trigger mechanism and it’s what I call financial survival instinct. . . . You cannot stop reality.
The reality is we are in a debt based economic system in a scenario that has never happened before. . . . When this thing busts, it will make the 1930’s look like a warmup parade because it will not be centered in Europe and the United States. It will be China. It will be India. It will be Australia, Europe, the United States, Canada, Mexico and South America. It is going to be everybody.” Morgan goes on to point out, “It’s all about trust, and now these big banks don’t trust each other, and that was the same problem in 2008. They did not want to accept each other’s paper because they didn’t trust it.”
“Part of it is the seven year cycle in the stock market, and seasonality plays strongly in both the metals and stock market. September/October is the time frame where you get a falloff.”
“The stock market is so overvalued it has no relationship with physical reality. The physical economy does not match what stock prices are at all–not even close.”
“The mainstream media keeps saying things are good, and all people have to do is look out their window. There is a trigger mechanism and it’s what I call financial survival instinct.”
“You cannot stop reality. The reality is we are in a debt based economic system in a scenario that has never happened before.”
“When this thing busts, it will make the 1930’s look like a warm-up parade because it will not be centered in Europe and the United States. It will be China. It will be India.”
