Wednesday, April 30, 2014
Some "Miners" Go to Pot, David Morgan on Ellis Martin Report
Wednesday, April 16, 2014
Dollar Value Could Suffer Instant Change
By Greg Hunter’s USAWatchdog.com
Silver expert David Morgan is warning of coming financial changes that may be forced on the U.S. during the next G20 meeting. Morgan says, “The impetus here is the U.S. has had too much financial power backed by the military for far too long, and they (G20) are going to implement change one way or the other. The IMF is basically an extension of the United States. Even though it’s called the International Monetary Fund, it is really U.S. based. With what’s been proposed here, the IMF is not going to have the clout that it once did because the G-20 is going to be able to overrule the IMF vote. This is a point in history, monetary history and global economic politics that could set a precedent . . . where it’s official that the U.S. dollar has lost its primary status as world reserve currency.”
Morgan goes on to say, “For years and years, decades, the United States has exported their inflation because it’s a reserve currency, and we have the ability to just print at will. We have pushed the U.S. dollar overseas, into Japan, into China, into Europe, all over the world, and now these dollars could be repatriated. . . . It is a very simple concept in economics, and the supply of dollars is huge. The reason we haven’t seen inflation is those dollars have not been spent. This would portend ‘I need to get out of the dollar and buy tangible assets. . . . Real estate, gold, silver, businesses, any tangible asset. This would be an impetus for these countries that don’t need dollars anymore. If I don’t need these dollars and I don’t settle oil in dollars, it’s not the supreme currency. I need to get out of it.’ If that mindset takes hold widespread, you could see the dollar dive in value against other currencies. There are so many dollars sitting out there doing nothing that could change like a flock of birds. They are all flying in one direction, and then for no reason we could understand, they go the other direction instantly. We could have an instant change where nation states say I need to get out of dollars. If that were to take place, you could see a huge change virtually overnight.”
Morgan thinks the world knows the dollar is in trouble. He contends, “Everyone wants to pretend that everything is OK, but everyone also knows the emperor has no clothes. . . . People might say I’m out. The dollar is toast. I want out at any price. Once that mindset takes place, it could catch fire. It’s unlikely, but you cannot rule it out. . . . 19 out of the G20 are saying we are mad as hell and we are not going to take anymore. You get it together or we are going to get it together for you. . . . Something is going to take place this year that will have such an impact. Perhaps what will be announced will go over the heads of many, but those who are awake will say, ‘that’s it.’ Might not happen initially, but the earthquake will have started, and the U.S. dollar will have lost its status on the international markets.”
On silver, Morgan says, “The rush into gold is basically nation states, but the rush into silver is basically ‘the people,’ and it’s not just ‘the people’ of the U.S., it is ‘the people’ of the world. Silver has been mined in more places in the history of the world than gold ever has. Gold has always been nation state to nation state settlement. . . . What will happen in my view, and this happened in late 1979 and 1980, is that people will catch on quickly. They will see what’s happening in gold and they will say ‘I can’t afford gold at $2,500 an ounce or $3,000,’ and they’ll say ‘I’m going to buy silver.’ Since there are many more people that are middle-class or lower that have a financial survival instinct, they’re going to get whatever they can. The top tiers of all the commodities are gold and silver. Why? Because they’re money, they last, they don’t rot and store forever. There will be a rush into gold and then silver like you have never seen before. This will be a global phenomenon. It wasn’t in 1979, this time it will be. You will either have it or you don’t.” What are Morgan’s price targets? Morgan says, “I am on the record that it will hit $100 an ounce, and that may be conservative. If you look back in history . . . an ounce of silver is basically a day’s wage in very, very good times. The minimum wage in some states is $9 an hour, and that equates to $72 a day. That means an ounce would be $72 at the minimum, just to be fair value today. . . . I don’t think we need to focus on the paper price but the value of silver relative to the market. . . . Two things to consider here: Silver is very undervalued where it is currently, and its value has a lot of upside. You really have to focus on what it purchased relative to what it purchased in the past, and we have not ever gotten to par.”
Silver expert David Morgan is warning of coming financial changes that may be forced on the U.S. during the next G20 meeting. Morgan says, “The impetus here is the U.S. has had too much financial power backed by the military for far too long, and they (G20) are going to implement change one way or the other. The IMF is basically an extension of the United States. Even though it’s called the International Monetary Fund, it is really U.S. based. With what’s been proposed here, the IMF is not going to have the clout that it once did because the G-20 is going to be able to overrule the IMF vote. This is a point in history, monetary history and global economic politics that could set a precedent . . . where it’s official that the U.S. dollar has lost its primary status as world reserve currency.”
Morgan goes on to say, “For years and years, decades, the United States has exported their inflation because it’s a reserve currency, and we have the ability to just print at will. We have pushed the U.S. dollar overseas, into Japan, into China, into Europe, all over the world, and now these dollars could be repatriated. . . . It is a very simple concept in economics, and the supply of dollars is huge. The reason we haven’t seen inflation is those dollars have not been spent. This would portend ‘I need to get out of the dollar and buy tangible assets. . . . Real estate, gold, silver, businesses, any tangible asset. This would be an impetus for these countries that don’t need dollars anymore. If I don’t need these dollars and I don’t settle oil in dollars, it’s not the supreme currency. I need to get out of it.’ If that mindset takes hold widespread, you could see the dollar dive in value against other currencies. There are so many dollars sitting out there doing nothing that could change like a flock of birds. They are all flying in one direction, and then for no reason we could understand, they go the other direction instantly. We could have an instant change where nation states say I need to get out of dollars. If that were to take place, you could see a huge change virtually overnight.”
Morgan thinks the world knows the dollar is in trouble. He contends, “Everyone wants to pretend that everything is OK, but everyone also knows the emperor has no clothes. . . . People might say I’m out. The dollar is toast. I want out at any price. Once that mindset takes place, it could catch fire. It’s unlikely, but you cannot rule it out. . . . 19 out of the G20 are saying we are mad as hell and we are not going to take anymore. You get it together or we are going to get it together for you. . . . Something is going to take place this year that will have such an impact. Perhaps what will be announced will go over the heads of many, but those who are awake will say, ‘that’s it.’ Might not happen initially, but the earthquake will have started, and the U.S. dollar will have lost its status on the international markets.”
On silver, Morgan says, “The rush into gold is basically nation states, but the rush into silver is basically ‘the people,’ and it’s not just ‘the people’ of the U.S., it is ‘the people’ of the world. Silver has been mined in more places in the history of the world than gold ever has. Gold has always been nation state to nation state settlement. . . . What will happen in my view, and this happened in late 1979 and 1980, is that people will catch on quickly. They will see what’s happening in gold and they will say ‘I can’t afford gold at $2,500 an ounce or $3,000,’ and they’ll say ‘I’m going to buy silver.’ Since there are many more people that are middle-class or lower that have a financial survival instinct, they’re going to get whatever they can. The top tiers of all the commodities are gold and silver. Why? Because they’re money, they last, they don’t rot and store forever. There will be a rush into gold and then silver like you have never seen before. This will be a global phenomenon. It wasn’t in 1979, this time it will be. You will either have it or you don’t.” What are Morgan’s price targets? Morgan says, “I am on the record that it will hit $100 an ounce, and that may be conservative. If you look back in history . . . an ounce of silver is basically a day’s wage in very, very good times. The minimum wage in some states is $9 an hour, and that equates to $72 a day. That means an ounce would be $72 at the minimum, just to be fair value today. . . . I don’t think we need to focus on the paper price but the value of silver relative to the market. . . . Two things to consider here: Silver is very undervalued where it is currently, and its value has a lot of upside. You really have to focus on what it purchased relative to what it purchased in the past, and we have not ever gotten to par.”
- Source, USA Watchdog:
Monday, April 14, 2014
Gold And Silver Will Be Global Phenomenon
- Source, USA Watchdog:
Monday, March 31, 2014
Silver Prices and Fundamentals
This short interview will serve as an excellent perspective for understanding how silver supply and demand CAN actually act in these markets. We discussed the US Mint Silver eagle coin program, retail jewelry demand, and the impact of silver supply
Friday, March 28, 2014
Silver to Hit $30 to $34 Range in 2014
- Source, The Morgan Report:
Wednesday, March 26, 2014
David Morgan Interviews Shelly Kraft about Growth Capital Expo 2014
Monday, March 24, 2014
SILVER STACKERS: MEASURE YOUR STASH LIKE A MINER
by David Morgan, The Morgan Report
When attempting to quantify the amount and quality of a possible mineralized deposit on their property, exploration companies and producers generally follow a process which seeks to state, in reasonably accurate and concise terms, just what they have…or might have. Following the Bre-X fiasco, wherein ‘highly inaccurate’ reserves of a supposed deposit in Borneo were publicized and acted upon by a tidal wave of investors, sophisticated and neophyte alike, a new set of reporting rules was enacted.
Canadian National Instrument 43-101, is a rule developed by the Canadian Securities Administrators governing the process of disclosing to the public, scientific and technical information about mining projects. The NI 43-101 report is presented (usually within the context of a company News Release) by a “Qualified Person” — by a (presumably) competent, licensed Geoscientist, who often works for the company in question and is assumed to be skilled in analyzing the mineralization under review.
Reduced to its essence, the continuum of terms, expressed from highest to lowest confidence levels is as follows:
Reserves (Proven/Probable): Proven reserves are those that can be mined using current technology at current prices. Probable reserves may become economic if they ‘pan out’ by being confirmed as expected.
Resources (Measured, Indicated, Inferred): This part of the equation is derived primarily from ‘sampling’ efforts — drill hole programs, trenching, and even ‘grab sampling’. These resources, in all three subcategories might be of economic interest and with the passage of time and more research, turn out to be economic.
Brent Cook, an independent geological consultant, Editor of Exploration Insights, conference presenter, and active private investor, sums it up nicely when he says:
“An investor needs to bear in mind that not all resources or reserves are of the same quality. One company’s two million ounces measured, indicated and inferred resource may ultimately convert to proven and probable reserves whilst the next company’s two million ounce resource may end up as no more than an interesting anomaly to be revived during each successive minerals boom. Likewise, Qualified Persons are not all equally qualified and the quality and veracity of any resource estimate is no better than the integrity of the data supplied and person reporting.”
So how would you ‘measure’ this deposit?
In July, 2012, Pan American Silver made an announcement regarding the proposed future of its Navidad deposit, rumored to hold 700 million ounces of silver, located in Chubut Province, Argentina, as influenced by proposed provincial tax draft legislation. They said in part:
“These increased royalties and the net carried interest are in addition to the 10% export duty payable on the sale of concentrates and the 35% income tax rate, which are payable to the federal government.
“This level of government participation and tax burden is unprecedented relative to any of the other jurisdictions where Pan American operates, including the province of Santa Cruz in Argentina, where the Company’s Manantial Espejo mine is located. The Company’s initial review of the effects of the proposed legislation, when coupled with the current inflationary environment in Argentina, indicates that the increased provincial participation will render the Navidad project uneconomic at any reasonable estimate of long-term silver prices.
“While the proposed law remains subject to revision within the legislative sub-committee and during the debate process in the provincial legislature, in the event that the law is approved as proposed without any meaningful modifications, Pan American will have no other reasonable option but to suspend further investment in Navidad. Without clear potential for positive economic returns, further investment and project expenditures cannot be justified.”
Keep Brent Cook’s comments in mind as we move to use these mining terms in an analogy about the future availability of physical silver supplies and how this might apply to you.
For our purpose today,
Reserves:
Proven – “silver in hand” — in a safety deposit box, a hole in the ground in your back yard — someplace where YOU know that it definitely resides.
Probable — from an “allocated” account, in one of the very few Exchange Traded Products (ETPs) which states that you can — if you so desire — take delivery of your silver or gold. (Trust on your part is a factor here, no?) From an “allocated” bank or trust account which claims to be storing silver in your name, in case you would like at some point to retrieve it.
Should you be without a bit of cynicism on this matter, consider looking up the sad story (as reported in 2010 in The Globe and Mail, entitled “An unkind complicatedness”) of Canadian Amar Patel, 73 years old, suffering from chemotherapy, dealing with breast cancer, and simply trying to retrieve silver from the bank who was ‘holding’ it for her in the form of certificates she had purchased decades before.
After undergoing a series of stressful and humiliating detours, including at one point having the bank responding that it could still deny her request if the transaction was deemed not to be in her “best interest”, she finally was able to take delivery of her silver.
Resources:
Measured: The reported yearly global supply, (new and recycled) totals as collated and reported by an established organization like the Silver Institute.
Indicated: A collation of the expected production totals of primary and secondary silver miners, based in part upon the previous year’s output, AND upon what the companies themselves project that they will be able to produce during the coming year(s).
Inferred: Presumptive silver potential in the earth’s crust as concluded via studies of the U.S. Geophysical Survey, along with such statements from analysts like “Over one billion ounces of silver has been mined from Idaho’s Silver Valley. It is estimated that another billion ounces remain to be found.”
Or, “Silver can be found in the earth’s crust in a ratio of 9:1 (or 8:1), therefore we conclude that another “x” million ounces remain to be located.”
So, silver stackers, if you don’t actually have that silver in hand — or close by — as Dirty Harry would say, “Do you feel lucky today?”
When attempting to quantify the amount and quality of a possible mineralized deposit on their property, exploration companies and producers generally follow a process which seeks to state, in reasonably accurate and concise terms, just what they have…or might have. Following the Bre-X fiasco, wherein ‘highly inaccurate’ reserves of a supposed deposit in Borneo were publicized and acted upon by a tidal wave of investors, sophisticated and neophyte alike, a new set of reporting rules was enacted.
Canadian National Instrument 43-101, is a rule developed by the Canadian Securities Administrators governing the process of disclosing to the public, scientific and technical information about mining projects. The NI 43-101 report is presented (usually within the context of a company News Release) by a “Qualified Person” — by a (presumably) competent, licensed Geoscientist, who often works for the company in question and is assumed to be skilled in analyzing the mineralization under review.
Reduced to its essence, the continuum of terms, expressed from highest to lowest confidence levels is as follows:
Reserves (Proven/Probable): Proven reserves are those that can be mined using current technology at current prices. Probable reserves may become economic if they ‘pan out’ by being confirmed as expected.
Resources (Measured, Indicated, Inferred): This part of the equation is derived primarily from ‘sampling’ efforts — drill hole programs, trenching, and even ‘grab sampling’. These resources, in all three subcategories might be of economic interest and with the passage of time and more research, turn out to be economic.
Brent Cook, an independent geological consultant, Editor of Exploration Insights, conference presenter, and active private investor, sums it up nicely when he says:
“An investor needs to bear in mind that not all resources or reserves are of the same quality. One company’s two million ounces measured, indicated and inferred resource may ultimately convert to proven and probable reserves whilst the next company’s two million ounce resource may end up as no more than an interesting anomaly to be revived during each successive minerals boom. Likewise, Qualified Persons are not all equally qualified and the quality and veracity of any resource estimate is no better than the integrity of the data supplied and person reporting.”
So how would you ‘measure’ this deposit?
In July, 2012, Pan American Silver made an announcement regarding the proposed future of its Navidad deposit, rumored to hold 700 million ounces of silver, located in Chubut Province, Argentina, as influenced by proposed provincial tax draft legislation. They said in part:
“These increased royalties and the net carried interest are in addition to the 10% export duty payable on the sale of concentrates and the 35% income tax rate, which are payable to the federal government.
“This level of government participation and tax burden is unprecedented relative to any of the other jurisdictions where Pan American operates, including the province of Santa Cruz in Argentina, where the Company’s Manantial Espejo mine is located. The Company’s initial review of the effects of the proposed legislation, when coupled with the current inflationary environment in Argentina, indicates that the increased provincial participation will render the Navidad project uneconomic at any reasonable estimate of long-term silver prices.
“While the proposed law remains subject to revision within the legislative sub-committee and during the debate process in the provincial legislature, in the event that the law is approved as proposed without any meaningful modifications, Pan American will have no other reasonable option but to suspend further investment in Navidad. Without clear potential for positive economic returns, further investment and project expenditures cannot be justified.”
Keep Brent Cook’s comments in mind as we move to use these mining terms in an analogy about the future availability of physical silver supplies and how this might apply to you.
For our purpose today,
Reserves:
Proven – “silver in hand” — in a safety deposit box, a hole in the ground in your back yard — someplace where YOU know that it definitely resides.
Probable — from an “allocated” account, in one of the very few Exchange Traded Products (ETPs) which states that you can — if you so desire — take delivery of your silver or gold. (Trust on your part is a factor here, no?) From an “allocated” bank or trust account which claims to be storing silver in your name, in case you would like at some point to retrieve it.
Should you be without a bit of cynicism on this matter, consider looking up the sad story (as reported in 2010 in The Globe and Mail, entitled “An unkind complicatedness”) of Canadian Amar Patel, 73 years old, suffering from chemotherapy, dealing with breast cancer, and simply trying to retrieve silver from the bank who was ‘holding’ it for her in the form of certificates she had purchased decades before.
After undergoing a series of stressful and humiliating detours, including at one point having the bank responding that it could still deny her request if the transaction was deemed not to be in her “best interest”, she finally was able to take delivery of her silver.
Resources:
Measured: The reported yearly global supply, (new and recycled) totals as collated and reported by an established organization like the Silver Institute.
Indicated: A collation of the expected production totals of primary and secondary silver miners, based in part upon the previous year’s output, AND upon what the companies themselves project that they will be able to produce during the coming year(s).
Inferred: Presumptive silver potential in the earth’s crust as concluded via studies of the U.S. Geophysical Survey, along with such statements from analysts like “Over one billion ounces of silver has been mined from Idaho’s Silver Valley. It is estimated that another billion ounces remain to be found.”
Or, “Silver can be found in the earth’s crust in a ratio of 9:1 (or 8:1), therefore we conclude that another “x” million ounces remain to be located.”
So, silver stackers, if you don’t actually have that silver in hand — or close by — as Dirty Harry would say, “Do you feel lucky today?”
- Source, David Morgan of The Morgan Report:
Saturday, March 22, 2014
Silver Outflows From The SLV ETF
Thursday, March 20, 2014
Argentina Today - the U.S. Tomorrow: Got gold and silver?
Tuesday, March 18, 2014
How Does One Buy Canadian Mining Stocks
Sunday, March 16, 2014
Silver in 2014, Still a Bull Market
- Source, Future Money Trends:
Friday, March 14, 2014
Gold And Silver Correction Appears To Be Over
- Source, Financial Survival Network:
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