David Morgan: Gold Stocks are Extremely Undervalued
Tom welcomes back experienced silver investor David Morgan to the show. David gives us an overview of the markets, including copper, gold, silver, miners, and the overall equities markets. Copper appears to have peaked, having broken down thru the fifty-day moving average. Gold and the miners aren’t looking good, and he expects silver to continue trading sideways between $26 and $28.
He believes we are in the distribution phase for equities and that many big players are selling, but this process will take some time to play out. A further leg up and a blow-off top in equities seem likely.
At some point, dollar weakness will cause those in charge to institute a new system. It’s going to be essential to hold some physical metal throughout this period. This next resource cycle will be one for the record books.
Silver during this final phase of the coming market will bring real value to investors. Fifty percent of silver is now utilized by industry, but investment demand is the true driver of this market. He believes gold to silver will at least reach its historic monetary ratio and may surpass it. He’s also watching the ratio of gold to the miners and thinks this will be a valuable metric for determining the top of the resource cycle.
David details the numerous uses for silver in electronics, switches, photovoltaics and discusses why silver is essential. More physical will become available once the price of silver breaks out since globally, some retail investors will decide to sell.
Investors need to have a solid constitution to get involved in the resource markets due to the volatility. There are several ways you can reduce risk, and he discusses the importance of evaluating companies as many are mediocre at best.
Time Stamp References:
0:00 – Introduction
1:03 – Premium Charts
3:45 – HUI & Silver
5:10 – Equities Price Action
8:55 – Melt-Up Phase?
10:48 – US Dollar & Gold Equities
13:22 – Profits & Metals
16:00 – Industry Silver Usage
19:37 – Physical Shortages?
21:19 – Comex Paper & Futures
24:42 – Basel III & Silver
27:33 – Physical Silver Supply
29:45 – Dollar Diversification
33:20 – Managing Risk
36:12 – Fed & Rates
39:30 – Market Power Curve
42:00 – Fed & Transitory Inflation
44:57 – Personal Liberty
47:58 – Concluding Thoughts
Talking Points From This Week’s Episode
- Market overview with charts.
- Smart money is gradually exiting the broad equity markets.
- Expectations for gold and silver in the coming cycle.
- Federal Reserve and Transitory Inflation.
David is a precious metals enthusiast with degrees in finance and engineering, and he originated The Morgan Report. This monthly report covers economic news, the global economy, and substantial capital gains by investing in the Resource Sector. The Model Portfolio includes top-tier, mid-tier, speculative, and special situations.
David considers himself a big-picture macroeconomist whose main job is education — educating people about honest money and the benefits of a sound financial system.
A dynamic, much-in-demand speaker worldwide, he has appeared on CNBC, Fox Business, and BNN in Canada. He has interviewed- The Wall Street Journal, Futures Magazine, Investing Rules, and numerous other publications.
As publisher of The Morgan Report, he has appeared on CNBC, Fox Business, and BNN in Canada. He has been interviewed by The Wall Street Journal, Futures Magazine, The Gold Report, and numerous other publications.