Once again gold bears tried to force the yellow metal down, and it appears they have failed. Going into the Fed testimony, gold was under pressure and looked like it might violate support, clearing the way for a breakdown. Surprise – gold held and rallied hard.
Since this latest rally in gold started, every time the sellers showed up, buyers defended their positions and overpowered the shorts.
In this episode of the Keiser Report, Max and Stacy discuss what central bankers have wrought by printing fresh money for the assets rich as demonstrated by Donald Trump’s Beverly Hills property increasing in value by 1.2% per month and doubling in about a decade.
While the elite make off with the asset price gains, governments are driven into bankruptcy by the same financial collapse which enriched these elites and they are now shaking down ordinary citizens who are looking for pennies stashed in safe deposit boxes, as is the case in Italy.
In the second half, Max interviews David Morgan of TheMorganReport.com about the gold/silver ratio and whether it matters in a day and age when silver has been largely demonetized.
Although gold has seen historically high gains this week, silver’s potential shouldn’t be overlooked, according to David Morgan, editor of the Morgan Report.
“Silver is the only place to go at this level,” Morgan said. “If you get 92 silver rounds for what you get one ounce for, it pays to just buy the silver, wait, and swap it into gold when the ratio drops lower.”
With the gold-silver ratio currently around the 92 mark, Morgan said silver is currently languishing; however, gold’s ongoing rally will push the silver price higher.
“Gold is doing well, it will drag silver up,” he said.
“Silver has become a bit of a different market since the advent of the cryptocurrencies… once monetary demand comes back, you’ll see silver accelerate because it’s a small market."
It's no secret that silver has been in the dumps for 8 years now. But David Morgan and myself are undeterred. The fiscal irresponsibility, profligate spending, dire world economics and so much more, leads one to the conclusion that an insurance policy is necessary.
And precious metals always have been exactly that. And select miners are truly killing it. But it's going to take a catalyst to send prices forward. Or as David says, "Two black swans crashing into each other."
Despite silver and gold have a tough year, David Morgan, editor of The Morgan Report, is not giving up on the precious metals markets yet.
“I don’t give up, and not because I’m stubborn. I’m seeing positive things in the gold market, once you get through $1,300 and level off and get through $1,350, I’m absolutely convinced the bull market is finally back and silver will follow,” Morgan told Kitco News on the sidelines of the Vancouver Resource Investment Conference.
Morgan noted that competitors such as bitcoin and cannabis stocks have contributed to investor capital flowing away from silver.
Precious metals analyst and financial writer David Morgan says precious metals won’t go much lower but are going much, much higher in price.
Morgan explains, “If we see the equity market start to fall off in a major correction, I’m talking more than 20%, I think you will see a run to gold and a confirmation in the silver market. In my analysis, I’d say we are on our way up to the largest move in the precious metals market I have probably ever seen in my lifetime.
There will be a run into gold because the bond market is really not a safe haven as it is touted to be. How safe is something that there is $43 trillion ($22 trillion official federal debt and $21 trillion ‘missing’) in debt that cannot be repaid in any way, shape or form?
You’re going to pay it off in dollars, and you will just print the money up and you will have it worth less, and worth less, and worth less, and then it’s worthless. Or, you are going to have to see these bonds default where you are going to get 60 cents on the dollar, or 50 cents on the dollar or 20 cents on the dollar. That’s more unlikely.
The most likely case is that they will just print their way out of it, which means you are defaulting on the currency itself. Once that psychology hits the market, there will be a run to gold that will be unbelievable.
There will be no place else to go.” Morgan warns, “I think you have three to five years at the most where you see this blow off, where you see things go back to the mother nature of finance. These things will get reset.
What does that mean? It means everything will get repriced: the stock market, bond market, housing market, commodities market, money itself, interest rates, everything.
Everything that has to do with the way we operate in the financial sector gets repriced.” Rapid inflation will come at some point, and Morgan says, “That is what the banking establishment fears the most. Once that happens, it means they have lost control.”
