David Morgan: Gold Stocks are Extremely Undervalued
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.
Time Stamp References:0:00 - Introduction1:03 - Premium Charts3:45 - HUI & Silver5:10 - Equities Price Action8:55 - Melt-Up Phase?10:48 - US Dollar & Gold Equities13:22 - Profits & Metals16:00 - Industry Silver Usage19:37 - Physical Shortages?21:19 - Comex Paper & Futures24:42 - Basel III & Silver27:33 - Physical Silver Supply29:45 - Dollar Diversification33:20 - Managing Risk36:12 - Fed & Rates39:30 - Market Power Curve42:00 - Fed & Transitory Inflation44:57 - Personal Liberty47:58 - Concluding Thoughts
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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.
David Morgan is a world-renown precious metals aficionado. He is the creator of the Silver-Investor.com website and The Morgan Report, a monthly report that covers economic news, overall financial health of the global economy, currency problems and the key reasons for investing in precious metals. A dynamic, much-in-demand speaker all over the globe, David's educational mission also makes him a prolific author, having penned Get the Skinny on Silver Investing
