David Morgan: The Coming Great Depression Will Make the Last Look Like a Small Technical Correction
Tom welcomes back David Morgan, who is always an enlightening guest when it comes to the precious metals sector and silver in particular.
David discusses the aviation problem of being “behind the power curve” (aka coffin corner), which occurs when an aircraft is doomed to stall, fall, and certainly crash. This is an excellent analogy for today’s markets, and David says, “all of this money printing will only exacerbate the problem.”
Holding stocks in a currency panic is preferable to being in cash. However, that will only reduce some of the effects of high inflation. Today, interest rates are supposed to factor in risk, but rates are no longer in line with reality.
He hazards a guess that Fed Chair Powell may be considering negative interest rates in an announcement coming later today.
There is a lot of money out there, and when it gets scared, most of that capital will be looking for a safe haven.
The recent large moves in silver price indicate the small size of the market and suggest that investors are waking up. Given inflation, the historic fifty dollar price level for silver is only psychological. Very little silver mining is occurring this year, but physical demand is up dramatically. Some industrial users are unable to acquire silver from the recycling side of the market.
David discusses how today humanity is in a state of disarray, and both the people and the system need redemption.
Time Stamp References:
0:50 – Analogy to describe the market.
3:15 – Stocks during hyperinflation.
7:10 – Fed announcement August 27.
12:10 – Historic portfolio weightings in PM’s.
17:25 – Industrial silver supply scenario.
21:25 – Big moves in silver.
25:40 – Fifty dollar support level and psychology.
29:45 – Diversification in a portfolio.
32:10 – Thoughts on Junk Silver.
40:20 – Focus on which juniors.
42:30 – World needs an awakening.
Talking Points From This Week’s Episode
- Markets, money printing, and the power curve.
- Silver’s price inelasticity, supply, and demand.
- Commercial real estate and defaults.
- Industrial demand shortfall scenario.
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.