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Inside the Mind of a Silver Market Master: Exclusive Interview Reveals Decades of Insights · SILVER / GOLD / $UFD: Surviving Global Economic Shifts | RONS BASEMENT

0:00
Usually in an economic collapse, the only thing that saves you in
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the past has been precious metals.
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It may not be the same way this next time, I don't know, but it
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certainly won't hurt having some precious metals.
0:16
Are you frustrated with the current state of the silver
0:20
market? Are you ready for true price
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discovery? Today we have a special guest,
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David Morgan from the Morgan Report.
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He's a respected voice in the precious metal sector.
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David, welcome to Ron's Basement.
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Ron, it's great to be here. Thank you.
0:36
Well, you've you've been studying the silver market and I
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imagine you look at the gold market as well for for many
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years. Are you frustrated right now
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with the silver price in particular?
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Yes. Oh yeah, It's, you know, it's
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unusual to see gold breaking out to new highs.
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I would say it's unusual, but it's frustrating to see gold
1:00
breaking out to new highs and silver not doing very much.
1:03
Although if you go back and say the markets, it's not that
1:05
unusual for this to take place. I used to think when I was
1:09
trading futures and not as much experience as I have now, that
1:13
silver leads gold, and it does sometimes, but there are times
1:18
when gold leads. So, and this is definitely one
1:21
of those times, they one of the biggest drawbacks for silver as
1:25
far as getting recognition is that it's really a retail market
1:31
only, whereas gold is an establishment metal.
1:34
Now the establishment will not tell you it's an establishment
1:37
metal, but you and I both know central banks have been buying
1:40
gold hand over fist for the last couple years and all the major
1:44
central banks hold gold on the balance sheet.
1:46
And after Basil 3, it's considered a tier one asset,
1:50
which means it's as good as cash.
1:51
Well, I got a news for you folks.
1:52
It's a lot better than cash. Cash will burn, the fucking gold
1:56
doesn't. But regardless of you know where
1:59
gold stands, it's really is a mainstream investment.
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Although it's sort of a pseudo mainstream investment because
2:07
Wall Street never promotes gold, they promote stocks and bonds.
2:12
Silver on the other hand has no monetary value to the banking
2:17
system. It does of course to people in
2:21
general worldwide, but it's been pushed into, it's an industrial
2:25
commodity only mean for a very, very long time.
2:29
It's not true. It's both money and industrial
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commodity. And if you let me go on here,
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I'll just explain something that most people don't really
2:40
understand. I mean, I remember I was at a
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gold show or a investment conference years ago and one of
2:47
the more well followed gentleman was speaking and he said silver
2:53
is not money. And some of my fans came running
2:56
over to me and so and so said silver isn't money.
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You know, I don't care what he says, you know, just because you
3:02
say you know white isn't white or yellow, is it yellow or you
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know, water isn't water Doesn't make it so.
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Anyway, I digress. So silver is money, but you got
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to look at it. I think the best way to look at
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Silver's money is to look at it from this perspective.
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Legally, it's money which is more important than emotional or
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economic at law. I could take 4 Silver quarters
3:30
into Walmart or into Safeway or into the gas station or the
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convenience store, lay it down, and they must give me whatever
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I'm buying for that four quarters.
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So it's money. It's still money.
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It will probably end as money. So that's the legal part of it.
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And if they don't accept it, it'd be like not accepting cash.
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You know, I won't set Federal Reserve note, and that's the
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prerogative of a private business.
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So I don't want to go down that revenue.
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Now let's look at it economically.
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Am I going to put four quarters that in Fiat are worth about 10
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times face am I going to take that dollar that's you know in
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four quarters that's worth 10 Fiat to buy a dollars worth of
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gum? No.
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Economically it's not money at face value.
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Now economically it can be money if you and I do a deal and I
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give you 419 sixty 3/4 and buy your you know your panda bear
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back. It's not Panda but your bear
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back there And we agree you want the you want the silver and I
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want the bear. And I made a better deal than
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you did and you made a better deal than I did.
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That's usually a fair exchange. So but that's the point so no
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one can that has a brain that really works.
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And say silver isn't money from a legal aspect.
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It is. It is and there's no but is it
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used? Course not.
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Why not? Because economically, he's going
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to screw themselves and pay 10 times more than they should for
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an item. Because at the store they've got
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to use the face value of the of the coin, of the coin.
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Does that make sense? I mean to make, Yeah.
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Yeah. Yeah.
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And and and I want to throw in as well, it's it's my
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understanding that silver and gold both are in the US
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Constitution and and and specifically mentioned as money
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and that we are seeing and it's hard to keep track, but
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somewhere between 20 and 25 states that have some form of
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either a legislation that's already passed or they're in the
5:47
process of passing legislation. Do you follow that at all?
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Do you find that interesting that the states?
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Yeah, I just did an interview with the guy that invented gold
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backs on this same topic. I was in Utah with a number of
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other people when the governor signed into law that you could
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use gold and silver and any transaction as long as both
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parties agreed. So if the owner of the Walmart
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or manage the Walmart said I'll take your four quarters for $10,
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you know, But the problem is it's cumbersome because the
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price changes on a daily basis, on a minute to minute basis.
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And so where do you lock in the price?
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And there's a lot of factors that make it cumbersome.
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But with a gold or silver, gold and or silverback debit card, it
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can make the transaction pretty easy.
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And that's what my friend here in Spokane did.
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He logged in a gold and silver debit card so you could spend it
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so the vendor is transparent. When I come to your shop and I
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put the debit card in the machine, it debits out, you
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know, $22.87 and the agreement is with the bank is they'll
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debit out 2287 in the close of the London fix that evening.
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No ambiguity. I'm not oh, I didn't get, you
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know, the midday quota. And in the long run it doesn't
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matter really because it all averages out pretty well over a
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long you know over a few months a week a couple days.
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But so there's that and there's these gold bad.
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There's other ways to do it, but it's just using like we used to
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with, you know, coins. You can do that.
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I mean, it's legal, it's outlaw, but it's pretty difficult
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because what do you get Change in Fiat.
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OK, you know, I would accept Fiat in change.
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I would try to make it as easy on the other party as I possibly
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could, right. So I'm going to give you 12 or
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whatever 2 Silver Eagles. So that's whatever 50 bucks and
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it's a $47 item. So 3 back give me 3 in Fiat.
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I'm out of here you know kind of right.
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But it not everyone's that easy going you know whatever.
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So so it's a wonderful thing and and the one more step and I'll
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give it back to you but I can't get.
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Along with. It's the with the cryptocurrency
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that's the beauty of it because you could get down like the
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Satoshi, you get down to like 6 decimal points.
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So I can do it with crypto, that's gold or silver backed and
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give you digits to whatever you want.
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There is no change due. I pay you $47.22 silver and it's
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done and that's the beauty of it.
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So I think that's the direction we're going to go with the
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future money. When I say future money, that's
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what I mean, gold and silver. And then you could broaden it
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to, you know, other cryptos or whatever.
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I think the ABDC's are where we're going to go in the future
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as in fact digital currencies, not necessarily just gold and
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silver, but cobalt, oil, real estate.
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But I really have a bit of a heartache with the general
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crypto market that it's just Fiat on a digit, right, really
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there. And well, what good does that do
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us? I mean, that's the battle we've
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been trying to fight is you give your labor, be it physical
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labour or mental labour or combination thereof, or
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something that's created out of nothing that has no true value.
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That's what I've been fighting my whole life.
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Why should I do that? Just because it's digitized and
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it's got a cute name on it, you know?
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I mean, that's the problem. That's not the solution.
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But we can make the digital currency the solution if we put
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something of substance behind it, just like a piece of paper
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doesn't necessarily have value, but if it's a silver certificate
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and it's a warehouse receipt for something of value, it
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represents value. So would I take a silver
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certificate? Can't change them in anymore, as
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you know. But excuse me, what time it was.
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You know, I made a big deal out of it.
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Excuse me. At one of the conferences and I
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held up a silver certificate, said this is not money and it's
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not, but it is a receipt for money.
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And at one time, you know, you could go in and I didn't think I
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have one of my desks go handy, but I've got it pretty much
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memorized. Says this is a silver
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certificate on deposit in the US Treasury there is $1.00, you
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know, and $1.00 of silver is not one ounce.
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The Treasury doesn't know that anymore because when they mint
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the Silver Eagle, it says $1.00 on it.
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But it's actually 30% more than a dollar.
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It's a dollar is 371.25 grains and 999 fine silver that comes
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out to about 0.77 Troy oz not one Troy oz.
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But anyway I'm off on a tangent but we we are in the ability
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where you said let's come back and I'm going to do a podcast on
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this and when I do it I'll send it to you and we're going to get
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the word out and I'm going to go through with really one of the
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guys that's done in my view the most work on this and there's
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several that are working on it. You know the sound money.
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So this is for sound money. But I forget the name of the
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outfit. But Stephen Gleeson, personal
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friend of mine, and he's done more on the law side to get this
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into the states. And the one I know and I needed
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to podcast to go through every state that does it.
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And there's variances of what different states do.
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Some just accept, like Utah. Some don't accept it for payment
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in full or final payment, but they don't tax.
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So there's a lot of the little nuances, but we're moving the
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right direction. That's important.
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And with me with the debit card, you know, I could spend that
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debit card anywhere in the country because it settles to
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the merchant Fiat, but I'm spending my silver, so it's not
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a darn business in a way. You know, I I love silver.
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I always have and and I know this for a fact, David, there's
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a certain percentage of the people that watch my channel
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that are subscribers to my channel that are this pure
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hardcore. If I don't hold it, I don't own
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it mentality and you mentioned anything about asset backed
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digital currencies, anything about blockchain and they just
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that before you can even explain it they say oh I don't want
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anything to do with that, I don't want.
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Now I would put forth that and Daniel Diaz at the Citizens for
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Sound Money kind of taught me this that that this idea of a as
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you described it, you know a a digital receipt, a digital
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currency, whatever, a blockchain based asset backed digital
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currency that is absolutely backed by physical metal.
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That it that it makes silver and gold for that matter functional
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again. And I would propose that if they
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get it right that it would it could actually explode the
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demand for the metal that that if you know if you made it
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functional. Look, if you came to Saint Louis
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right now and I wanted to take you for lunch and I wanted to
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pay with with, I know you're you're probably like good food.
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So I'd spend two American Silver Eagles on you.
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We could do it right. We'd have to get in my car,
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drive to the coin shop, I'd convert it into Fiat and we'd go
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have our lunch, right. But it would be a lot easier to
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do it in a in a much more seamless, functional way like
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you described. And and I implore with the
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people that are just so hardcore, if I don't hold it in
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my hands, it's not mine. It's like, well, it's it's if
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you can't use it and it's not functional, it kind of takes
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away from part of the appeal to it or the OR the long term.
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I would almost say value 'cause if if you want to harvest that
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value, you need to be able to harvest it in an easy way.
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Am I off base on that? No, you're totally on two
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points. The number one amount to get to
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the first one is you know, as much as first of all, silver.
14:17
Isn't the Constitution and the United States has put on a
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silver standard, not a gold standard.
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If you want to learn about the background on that, watch The
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Secret of Oz. You can watch that movie, that
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documentary for free on YouTube, Secret of Oz.
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The point is that the silver gold ratio never got above 20
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for thousands of years. Thousands.
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It's only been since 1873, You really say 1900.
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The last 124 years where the ratio has been above 20 several
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times. Now we're at 80 something.
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The reason it stayed 20 or lower is that both silver and gold had
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one function and one function only.
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Money. Money.
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It wasn't a you know, it wasn't for your flat screen TV or
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computer keyboard or your microwave memory switch.
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It was money. Now the only way we're going to
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get that ratio back down to where, not the only way but the
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proven way to get it back down there is to use this money.
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So if all you can do is stack, you're not going to really help
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the the 'cause. If you start to spend it, then
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you are going to help the cause because now it's circulating
15:27
more and more people adapt to it.
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More and more people like I give a discount if you pay me.
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So right now there it does. But in in my business I could
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say you can pay me 500 feet, I'll take 400 and silver, really
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you get a 20% discount for using silver.
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Yes, you do, you know, so that makes it more valuable because
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there's a big spread. There's a lot of reasons for
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doing that. But on the on the digital thing
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not to harp on it. I look at it like this, I fully
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and you know I try to do what I say.
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I walk my talk and I'm free market.
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So if you got to hold it knowing it which is right or the best
16:02
way to look at it, that's great. But to go to know digital is OK,
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that's your wish. But I look at it as a tool in
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the toolbox. I don't have all my money in
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digital form. That'd be stupid.
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I have enough where when I go to the gas station that silver I
16:16
bought for 18 and now it's at 25, I'm going to discount on my
16:20
gas and it's transparent to an emergency order.
16:24
So I look at it like a tool. In the tool, yeah, they meant if
16:27
I'm an expert Carpenter, I don't want to have a hammer, a pair of
16:30
pliers and a slot screwdriver. What if I run up and get to
16:33
Phillips head? I need another tool.
16:36
So that's how I look at it. I would just try to open
16:39
people's minds. You don't have to have a lot in
16:41
there. The problem with the banking
16:44
system is, and I kind of have to agree with them and I I don't
16:48
love banks, as you will know. But if you open up a debit
16:51
account, you're going to spend your silver or your gold or
16:53
either one, and you never do it. Now the bank's got a carrying
16:58
cost to keep that account open. So in the one system I'm in with
17:03
my friend Dale, they've actually closed some accounts and they
17:08
don't ask for much. They ask for $1000 turnover in a
17:11
year, which with the prices of gas and groceries these days,
17:16
you ought to be able to turn over 1000 bucks pretty easy if
17:19
you use it. But if you don't use it, then
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why did you get it in the 1st place?
17:23
So maybe I pitched it too hard and, but the first point is it's
17:27
got to be used as money. The best way we can help each
17:30
other is to spread the word by spending it, spend it all.
17:34
No. Is it undervalued?
17:36
Yes. And maybe you're like me, where
17:37
your average cost is probably around a little under 18 right
17:40
now. I mean, I wish my average cost
17:42
was five. It's not 'cause I bought all the
17:44
way up, right? So it averaged my cost up, not
17:47
down, but none the less. 18 is still less than 25 and I'm
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getting the idea of real money into real people and that's.
18:02
Yeah. And I and I and I like to point
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out to people, just because we may have this digital option,
18:07
that's not going to prohibit you from continuing to hold your
18:11
stack at home like you said, right?
18:13
It's not like it's one or the other.
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Like you have to turn. You're going to be required to
18:16
turn all your silver in. If you're looking to buy gold,
18:20
silver, or platinum, do yourself a favor and check out Pimbex,
18:24
the online precious metals bullion dealer and sponsor of
18:28
Ron's basement. I was a happy customer before
18:32
they offered to support the channel.
18:34
You'll find they have the best prices, quality, and service.
18:38
I think Pimbex is best and you will too.
18:41
And be sure to tell him that you're from Ron's basement.
18:44
Sometimes it feels like David, you know, I've really been
18:47
following the market closely probably for about 10 years like
18:51
we'll never have a sustained bull market in silver.
18:55
It feels like we're moving that way in gold.
18:57
I know we've got cup and handle patterns that are breaking out
19:00
and whatnot, but I I want to, I want to implore to you, is it
19:04
really possible that we could have a five year, maybe 10 year
19:08
bull run in the silver market? Have you have you seen situation
19:11
situations like that unfold during your your career?
19:16
Yeah, yes, I have. But not, I wouldn't say five
19:21
years. I mean, I, you know, noticed the
19:24
silver mark when I was 11 years old.
19:26
I mean went from 90% silver coins to the Cooper nickel coins
19:31
when I was an 11 year old kid. I didn't think a lot about it,
19:35
but I knew damn well that the silver coins were worth more
19:38
than these other ones. And then you quickly saw them
19:41
disappear out of circulation because you know, Gresham's Law
19:44
took place. Good money gets forwarded and
19:46
bad money gets spent. So the best one I can think of,
19:52
Ron, is what happened in the the Hunt situation.
19:56
And that was January 79. Silver rose at $6.
20:01
It's an all time high. The monetary price of a dollar
20:05
number .77 Troy ounces is a dollar, not an ounce.
20:10
So 129 a dollar, 29 an ounce is a dollar in weight.
20:20
So it went from the monetary price of 1964 to $6 in 1979.
20:32
And it was beating inflation, but not by a lot.
20:35
That was the all time record high.
20:37
Never been to $6. Fiat ever new high.
20:41
A year later was 50 intraday or 52 really.
20:45
But we'll call it 58150% gained in one year where it took like
20:53
15 years to go from $1.29 to six.
20:58
The part that people don't really know, and it I had to
21:00
think about it for a while was that after the the huge spike
21:05
exponential move up, parabolic move up, it fell back.
21:09
There was silver Thursday in March and all that, but the
21:12
average price for silver of all of 1980 so one year was $20.00.
21:19
So I want you to think about that the all time high the year
21:22
before was 6. The average price the next year
21:26
was over 300% higher for the year.
21:31
Not talking to spike high for a day, we're talking an average
21:35
price for a year, silver triple the all time high the previous
21:40
year. So that's kind of what I see
21:42
happening with silver again it tends to spike and go I would
21:47
say overvalued in those days. I mean 50 then is like 250 now
21:52
or 200 now, but regardless, I think it will spike.
21:57
Gold did too. Both of them spike silver far
22:00
more percentage and then they'll settle down.
22:04
It's just there's so many variables.
22:06
But coming back, could we get in a five year bull market where it
22:10
just kind of grinds up slowly where we don't get these huge as
22:14
much volatility? We'll always have volatility but
22:16
not as much. Yes.
22:19
And the reason for that is it won't be the emotionality that
22:24
you see in the money markets or the investment markets.
22:31
It'll be grinding up because of industrial demand and that is
22:35
forecast already. Now whether it takes place or
22:38
not remains to be determined. I mean, maybe they can replace
22:41
silver, copper, I doubt it. There's been many proposals.
22:44
I've read most of them. None of them really work to the
22:48
degree that silver does. But anyway, if things go as
22:52
anticipated, industrial loan will basically eat up the
22:56
silver. So now what do you do?
22:59
Anybody that's buying silver for investment purposes could drive
23:02
the price higher and there's not much manipulation that can take
23:08
place on the physical side if every last oz is used by
23:13
industry. I mean, it'll just keep pushing
23:16
higher and higher, especially if they start getting the squeezes
23:19
where, you know, they got to delay production for six weeks
23:22
so they couldn't get enough silver to keep the factory.
23:26
I'm not saying that's going to happen, but it could.
23:29
So there's a lot going for silver.
23:31
So we could get into a sustainable market.
23:34
We could get in a market that resets like it did in 1980 going
23:38
from 6 to to 20. Unfortunately the powers that be
23:44
got a hold of enough silver to kind of reset it in their money
23:48
management scheme and they got it pushed down to five later on
23:53
in you know in the 80s and 90s. But so I think I said enough but
23:59
I unfortunately and I've said this for years and I really
24:02
don't like that it has to be this way but we are not going to
24:06
see a free fair market silver until something breaks.
24:11
There's a non delivery or the Comex goes to a massive settle
24:15
in cash only with a big player. They do it all the time.
24:19
The little guy, I mean, I get, I've gotten emails all through
24:22
the years of like, hey David, I stood for two contracts, which
24:25
is, you know, 10,000 oz. This is round numbers.
24:28
And I got a check and my broker says there's nothing I can do
24:31
about it. And I affirm that, yeah, there's
24:33
nothing to do about it. Read your contract.
24:35
You agreed that you could, would it could or would that you would
24:39
settle in cash if they, if they, your broker or the exchange
24:44
decided to settle in cash. So how much of that has gone
24:47
over the years? Probably very little.
24:49
I don't want to make a big deal out of it.
24:51
Most of the big settlement that wants silver gets silver.
24:55
Most of the physical silver that swaps back and forth is between
24:58
big bullion banks. It's not between the Comex
25:03
warehouse and Mitsubishi or Samsung or Apple computer or
25:08
some of these other, you know, entities that use industrial
25:12
silver. Those are usually direct from
25:14
the refinery to the facility, not coming through.
25:19
The Comex bypasses it all together.
25:22
Not to say that some doesn't come off the Comex and go into,
25:27
you know, some type of industrial commodity a lot.
25:29
They're amount of silver off the Comex.
25:32
She goes into coinage. You know, they take the 1000 oz
25:35
bars and then they melt them down and extrude them and stamp
25:38
them and all the stuff they do to make it.
25:40
But anyway, it's unfortunate you know that silver market should
25:44
be free and for all markets and and they're not and it's
25:51
unfortunate because now silver is in a dynamic that it's going
25:55
to force the price higher at some point.
25:58
If you cannot make a profit mining silver, then why are you
26:01
going to mine it? And that's basically where we
26:04
are for the primary silver mine. And with an economic
26:08
contraction, there's not as much need for, you know, lead, zinc
26:13
and copper, all little copper guys will be better making that
26:16
statement. But in a big contraction
26:19
there'll be less need for everything.
26:21
So silver's got a lot of dynamics, should be higher
26:26
price. I'll turn it back to you.
26:29
So, So what I hear you saying is and and and and we talk about
26:33
this all the time, right, the supply of silver is let's say
26:38
stagnant or decreasing. We know about the deficits, the
26:41
demand from the industrial side is going up.
26:46
So, so my question would be could we see a confluence,
26:50
right. None of us has a crystal ball,
26:52
but it sure feels like that we could in, let's say in the next
26:55
year, three years, five years see a confluence of factors come
26:59
together where the the industrial demand is increasing.
27:04
I think it's safe to say right now in the West that investor
27:08
demand for silver is somewhat subdued.
27:12
That if we saw this confluence where industrial demand
27:15
continues upward or even stays where it is right now.
27:19
But we do get let's say inflation takes off and people
27:23
realize the Fed can't really fight inflation.
27:25
And there's there's kind of maybe like what happened in the
27:29
70s, people look for another way to store their wealth and they
27:32
rediscover silver that if we do see an uptick in in investor
27:38
demand in the West at the same time increased industrial use.
27:45
And I'll throw one more thing at you, David, is there a new
27:48
sheriff in town as the world is bifurcating and you've got the
27:52
bricks and the bricks plus countries, you have China with
27:56
the Shanghai Gold Exchange. I think India has started an
27:59
exchange for trading silver. We get these incredible demand
28:04
numbers that are coming through for for silver.
28:07
I think recently in February we heard, we heard that India
28:09
imported 70 million oz. I mean could it, could it be a
28:14
set up potentially that could that could you know be like a
28:21
catalyst to I guess to break the the paper market?
28:26
Yes, yes, is the answer that I just did this for my my paid
28:33
members. There's a gentleman named Matt
28:35
Watson. I was introduced to him to the
28:38
Silver Institute and he has a chart that shows exactly what he
28:43
said. IT projects the mining and
28:46
recycling of silver going from present day out to 2050.
28:50
It also shows the projections for industrial demand being
28:55
photovoltaic, the number one But soldering, semiconductors,
28:59
electronics, all that stuff. And it just keeps going up and
29:03
up and up and they get a crossover in a couple years
29:07
where the industrial side takes more silver than is available
29:12
through current mining and recycling.
29:15
So now you've got a built in deficit going on and from that
29:18
graph it goes from two years out to 2050.
29:23
So that silver has to come from somewhere and that's from the
29:25
above ground stockpiles. Now we have actually built the
29:29
above ground stockpiles from about 2005 to the last couple
29:33
years where I have to look at the next couple surveys because
29:37
the deficit is not always defined properly.
29:42
In my opinion, if you're building above ground
29:45
inventories, you don't have a deficit.
29:47
Now on paper, you could have a deficit because of the investor
29:51
category and the amount used by industry and there's a gap
29:54
between those numbers that's an accounting deficit.
29:58
But as far as a physical deficit means there's less above ground
30:01
the year that this year than it was last, and we had that.
30:06
From 1990 to 2005, we had 2 billion ounces of silver and
30:11
commercial bar form and after 15 years we're down to 500 million.
30:16
We ate up above ground supply 1.5 billion ounces in 15 years,
30:22
consecutive year over year over year.
30:24
The average drawdown was 100 million oz and yet the silver
30:28
price at the end of that was only $8 an ounce.
30:33
Now if that happened in the wheat market, where it happened
30:36
in the soybean oil market or the cocoa market, you wouldn't see a
30:41
low price and those commodity. But anyway, I digress.
30:45
So in 2005 till the last couple of years, we've gone to probably
30:51
2.5 billion oz. So we built up probably 2
30:54
billion ounces in commercial bar form.
30:58
But if you look at all, whenever there's a bigger supply, it
31:01
can't be more valuable. You got to look at gold.
31:05
Gold always adds to the supply. Very little gets eaten up and so
31:10
it's constantly adding to the above ground supply and yet the
31:13
price goes up for gold. Why is it?
31:16
Well, because gold is considered the ultimate money by the
31:19
institutions and by some, you know, investors.
31:23
Silver, of course, is not considered money because you
31:26
can't use it as very easily. So back to your point, yeah,
31:31
when you get to a point where industry's eating it up and
31:35
investors want it because of inflation or gold cost too much
31:38
or there's ways to spend it easily with a debit card or a
31:43
CBDC or I should say CBDCABBC asset backed digital currency.
31:48
I think there'll be more. It's just really education and
31:51
it's also the market itself. I mean, there's an expression
31:55
that Jim Dines is one of the better known newsletter writers.
31:59
It was considered himself. The original gold buggy had an
32:03
expression that once the ship has sunk, everyone knows how it
32:06
might have been saved. And that goes to the gold and
32:10
silver markets. Because once the collapse
32:11
happens, everyone knows they should have owned gold and
32:14
silver. It'll be a post facto after the
32:17
fact. People say, Oh my God, if I'd
32:19
only owned silver, I could have, you know, fed my family or paid
32:23
off the car for pennies on the dollar or had my rent paid for a
32:27
year or whatever happens. And I'm not guaranteeing any of
32:30
that. But usually in an economic
32:32
collapse, the only thing that saves you in the past has been
32:36
precious metals. It may not be the same way this
32:38
next time, I don't know. But it certainly won't hurt
32:42
having some precious metals. And that's another factors wanna
32:46
bring out real quick, Ron? And that's people are learning
32:50
the story. It's an easy one to learn to
32:52
find out they've been screwed their whole lives with this
32:55
banking consortium that basically is living a
32:59
counterfeit scheme at the force of government because they force
33:03
you to use it. And they make a decision that
33:09
I'm getting myself on a gold or silver standard or whatever and
33:12
they go all in. Unfortunately, that's a mistake
33:14
for almost because the price does fluctuate in terms of Fiat.
33:19
Everyone thinks in terms of Fiat and if the price is less than
33:23
they bought it before, they're upset as they have a right to
33:26
be. I don't think of it that way or
33:28
try to train myself to think different.
33:30
I try to think in terms of above ground supply in my basement.
33:34
And so I think if I got more silver this year than I had last
33:38
year, I'm wealthier. Yeah, but the price was 25 last
33:42
year and now it's 20. I don't care.
33:44
I've got more silver this year than last year.
33:47
I've got to be there. Yeah, I think you're you're you.
33:51
I've heard other people say it this way in a way that I try to,
33:54
and it really is a process of retraining.
33:56
I mean, I'm 54 years old and you still wave a $100 bill in front
34:03
of me and my eyes are going to light up, right?
34:05
I was trained. That paper is valuable.
34:08
But I think I know the reality is that when I think of my
34:12
silver that it's best for me to think of it in terms of Oz.
34:17
I've heard people say that before.
34:19
You know how many ounces do you have?
34:21
And and knowing the story and to me it's more than a story it's a
34:26
reality that that silver has been valuable for thousands of
34:30
years. And I it's hard for me to
34:32
imagine a scenario in the future where it doesn't maintain its
34:37
value. And the other thing I want to
34:39
throw in to circle back to what you were kind of finishing up
34:43
with there is we as I look at all these different factors and
34:48
what could affect the price of silver, again measured in Fiat
34:51
dollars as we go into the next couple years.
34:54
I think if nothing else I can I can I can take solace in knowing
35:00
that the real value of the dollar it's I I cannot imagine a
35:06
scenario where the real value of the dollar doesn't continue to
35:10
dilute, doesn't continue to devalue.
35:13
Whether or not you know industrial demand meets
35:16
expectations or if the mining supply right because these
35:20
miners it doesn't you know hardly anybody's exploring or
35:24
developing silver projects because there's no money in it
35:27
right now. Whether or not all that comes to
35:29
fruition the the the the bottom line base that I can always to
35:33
fall back on is that the I I don't have faith that the dollar
35:38
is going to go up in real value over the next 5-10 or 20 years.
35:42
It may and then I promise I'll be quiet, David.
35:45
It may on a relative value, right, the DXY index, you know,
35:49
may may go, the dollars up, the dollars down, whatever, right.
35:52
That's comparing, you know, the three, the three best cars on
35:58
the crediest used car lot in my city here, Saint Louis.
36:01
But in real value, I know that no matter what happens, I'm
36:06
confident that silver will hold hold more value than paper
36:10
money. Yeah, you're absolutely right.
36:13
The depreciation of the dollar is near its final inning, or
36:18
probably the bottom of the ninth with the two out.
36:23
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metals. Look at the slide I just
37:01
referred to. So very briefly going back to
37:05
running out of silver on Matt Watson's chart.
37:09
So he shows that 2024, we're basically at that exact point.
37:15
All the silver mine and recycled is eaten up by all of industry
37:20
and investment demand. But that's not true.
37:24
We don't know what it is this year, but last year we knew we
37:26
had a 2200 million ounce deficit.
37:29
Round numbers maybe 180, which means all the investment demand
37:34
went in the deficit. So the above ground supply
37:37
should go down. For the reporting.
37:41
The two reporting Silver people, CPM and the Silver Institute
37:49
should show us a A that much 200 million ounces are off the
37:54
table. And so I've moved, I've redone
37:58
the graph to reflect that. And when you do that basically
38:03
from last year onward, all the investment demand is on top of
38:08
the industrial demand which is barely being met this year and
38:13
next. And then by 2026 industry alone
38:18
is going to eat up all of the silver supply.
38:22
So that well I shouldn't say industry alone with jewelry and
38:26
so, OK, so it's it's it's unbelievable to think that we
38:35
have that ability to see in the future projected and know that
38:41
if you have some patience, I mean some of your age, I would
38:44
say it's an almost guarantee. You know, I would like to think
38:49
it's you know going to happen this year we get about 30 and
38:52
once you get about 30, it's a pretty short trip to 50.
38:56
There's not a lot of overhead resistance.
38:58
There's not a lot of silver that was bought at 35404550.
39:03
I mean, there's some, but very little so.
39:07
So let me let me interrupt you. Let me interrupt you on that
39:09
because I want to expound upon that thought.
39:11
I try to try my best to explain that to my viewers that like,
39:15
you know, like you just said, there aren't people out there
39:18
that paid. I mean, there are a few, no
39:20
doubt, right? A very few.
39:22
But there's very, very few people who paid $40.00 for
39:26
silver that are, that are sitting in their basements
39:29
thinking, man, if silver ever hits 40 again, I'm selling, I'm
39:32
done, right? That's not like and we're in
39:35
that situation with gold right now as well, right?
39:37
Most people that own gold in U.S. dollars, there's there's
39:41
nobody who bought gold at $2400 an ounce right.
39:44
Most everybody's in the money and human nature is then to not
39:48
sell which which if I have a correct decreases the supply.
39:54
You know there aren't a lot of sellers that it that it can
39:57
become a very, a very attractive market for the metals and with
40:02
silver like you said. And correct me or I'd like your
40:06
opinion on this. I like in my mind I think of
40:09
like 28 to 32 as is kind of like the the real all time high in
40:16
silver from that perspective. Meaning that once once we get to
40:20
3234 silver, it's they're they're just there won't be as
40:23
many people selling to recoup their their previous losses or
40:28
to recoup their money. Yeah, I know you said it well.
40:31
And just to reiterate what we talked about, I mean if you go
40:34
back to the what we've said the 1979 high of 6 and then well
40:39
fifty, well David you can't even say 50 that was anomaly.
40:42
It was a one day market, OK, I agree it was a one day market.
40:46
It wasn't anomaly but yet it lived out that year at triple
40:51
the all time high, the 20, I mean 3 * 6 is 18.
40:56
So we're in a similar situation here where anyone has, I said I
40:59
think you got it nailed. I think between 20 and 32
41:02
technically once you get about 28, I like 30 because there's
41:06
psychological thinking about round numbers of commodities,
41:08
not just gold or silver but oil or or cocoa or cotton or any
41:14
commodity. Once you get a number that's a
41:16
round Number, like 2002 thousand pretty much is going to be the
41:23
support for gold, but it hit 198752.
41:28
Yeah, could. But the psychological for
41:32
especially as time marches on, is gold's never going lower than
41:35
two. Thousand, yeah.
41:37
Once we get to where silver's never gone below 30, then we've
41:41
got a lot of people that are going to hold it.
41:43
And like you said, markets go up and buying and selling pressure.
41:47
So if there's no one selling at 30 because now they're in the
41:50
money, than any new buying rises it higher.
41:53
Now it's at 35. Now what do you do?
41:55
Most people that held it at 30 are now 5 bucks in the money.
41:58
I go, well finally I got all my premium back with those Silver
42:02
Eagles I bought $14.00 spot, right?
42:05
Yeah, running there. I'm not letting them go.
42:09
And that's what happened at GameStop.
42:10
That's why they had such a great squeeze on the invest in the
42:15
hedge funds because those kids were not letting go, they were
42:19
holding and there's no supply then any little bit.
42:24
It's just a little bit about it's what's called the float
42:27
really what's available immediately and Comex really
42:31
doesn't have that much silver to squash the market.
42:35
They only have the registered category.
42:37
They have a little bit in eligible but not much.
42:39
Most of the eligible category is held by long term investors,
42:43
their family offices, their hedge funds, their wealthy
42:47
investors. It could be industry, but so we
42:52
have a lot going for us. I wish I could show you this
42:54
graph. I mean it doesn't, you know it's
42:57
no guarantee. I mean what he shows is that the
43:00
mining and recycling is flat for the next 25 years.
43:07
I'm not sure it's going that long, but I would give him it's
43:11
probably going to be flat for the next 5.
43:14
And I think we've got one heck of a market going out for the
43:18
next few years. And then depending on whether or
43:21
not the bankers are are able to reset us to their contrived
43:28
control freak system, we can really see things explode.
43:33
You know, I mean, there will be people that get into it because
43:35
they have to to eat, unfortunately, and then there'll
43:39
be the resistance as well. So it's going to be very
43:42
interesting. Yeah.
43:43
And and to go along with what you said, you know, you hear
43:48
people say no, premiums are low right now.
43:50
Most people think the silver price, the spot price is low,
43:53
premiums are very low, which is indicative of the fact that from
43:56
the retail investment side, there's a subdued demand,
44:01
especially in the West, right. Well, the silver lining that I
44:05
like to, I like to call it is that on top of everything that
44:08
we've talked about silver investors like to buy when the
44:12
price is going up that if we get like the smallest uptick in
44:17
Western investment buying and silver that could be a big
44:21
marginal source of demand as well.
44:23
I mean it's all I don't want to say dreams but you know
44:27
predictions of what could happen in the future.
44:29
But if we do get that uptick that really could be a a silver
44:33
lining for the for the for the demand profile.
44:37
Absolutely. And the other part is the
44:39
algorithms. The biggest hold on the silver
44:42
market right now. Well, two, retail demand is
44:45
falling off and wholesalers are holding a lot of inventory.
44:49
In fact, I was in my coin dealer shop yesterday and they're
44:53
pretty big dealer. I mean, Spokane was built on
44:55
silver. I mean, all the mansions and the
44:58
big businesses here were because of the Silver Valley being an
45:02
hour and a half drive that direction.
45:04
I live right near the Silver Valley and billions of Oz of
45:07
silver came out of there. Anyway, I digress, but I talked
45:11
to the owner and he said I could get you silver rounds for $0.50
45:15
over all day right now. So that's a very low premium as
45:19
you know. So there's that.
45:22
But it's the end of, it's the institutional demand.
45:25
It's not there, right? And that's unusual because the
45:30
algorithms work on all these stocks and commodities and the
45:35
algorithms tell the other computers when to buy.
45:38
I mean a lot of this what's called off floor trading used to
45:41
have a human being behind it and then press the buyer sell
45:45
button. Not anymore.
45:49
The computer tells the the computer looks at what the
45:52
situation is and it buys itself. And the parameters for buying
45:59
silver are as good as any other commodity, in fact, on a
46:01
fundamental basis, better than almost anything you can name.
46:05
And yet you don't see participation.
46:07
So what did they do? Turn off, turn off that
46:10
algorithm. Hey, turn off the silver
46:12
algorithm, Matt. We don't want we don't want to
46:15
be buying silver. Well, why not?
46:17
Because we don't want the price going up.
46:18
Oh, you don't? No, no, we don't want the price
46:21
going up. I know that sounds totally
46:23
conspiratorial, because it is. But the fact is, why aren't
46:29
these algorithms kicking in? Silver traded.
46:32
Yeah, yeah. Well, they will, David.
46:35
They will. Hey, thank you so much on behalf
46:38
of myself and our viewer. You, I told everyone that you
46:43
were a respected voice in the silver and gold sector and
46:46
you've proven to us during this interview that that's definitely
46:51
the case. If people want to learn more
46:53
about you, could you tell them how they could, could you know,
46:58
do you have a website or how would they, how would they learn
47:01
more about you? Yeah.
47:02
There's a couple things. One is the main website is the
47:05
morganreport.com and I do more than silver.
47:09
I look at the whole resource side, precious metals, but it's
47:12
pretty much a precious metals oriented publication.
47:16
There's a free one that I do. The interviews like this I put
47:20
out for everybody and I am Shadow Band, so a lot of people
47:23
less are on the mail list. Never see the two or three
47:25
interviews I do every week. If you want to see them, get on
47:28
the mail list for free. I also have a paid service.
47:31
You can go to the subscribe tab and you can subscribe or not.
47:35
It's not for everybody. Most of your people are
47:37
Stackers. That's great.
47:39
I love them. I no need to go on the Equity
47:41
side. That's what I specialize in.
47:43
On the About tab, it's my biography, which you can read or
47:47
not, but if you Scroll down there's a movie called the Four
47:50
Horsemen film. It's for free.
47:53
I suggest everybody be on your channel.
47:55
Watch that movie on a weekend or time off.
47:58
It's about an hour and a half long.
47:59
Again, it's free and it goes to the end of the age of Empire.
48:03
And what you'll see in that documentary is where we are in
48:07
the greater scheme of things and why we're nearing the end game
48:10
and why precious metals are more important now than ever.
48:14
So that's it. And the last thing is I'm doing
48:15
a documentary, it's called Silver Sunrise and the landing
48:20
page for that is Silver sunrise.tv.
48:23
There's two trailers up. I've got trailer of G Edward
48:27
Griffin feature from Jekyll Island.
48:29
He's agreed to be in the film. He's already in the cans.
48:31
We filmed his segment. The script is done.
48:35
You can read the script. It's on the website or
48:37
interviewing Foster Gamble. That did Thrive One and Thrive
48:41
2. You know with those movies.
48:42
If you're not everyone should watch those also doing David
48:46
Icke or interviewed David Icke who most people know and he's
48:49
definitely the conspiracy king probably and he has a lot to say
48:54
about the monetary system in the past and we're interviewing for
48:58
this documentary. So it's you know getting through
49:02
the finish line at A at a hard charge.
49:05
And I was taught not to just finish, but finish strong And I
49:09
want to. I've written three books on
49:12
Silver, One's Skinny on Silver. It's a primer.
49:17
It's not really that great a book, but it's a nice warm up.
49:20
The Silver Manifesto, which is my more or less masterpiece.
49:24
It's almost anything you ever want to know about Silver
49:26
Market. And the last one is Second
49:28
Chance. It's more of an investment.
49:30
I've had people say it's the best investment book they've
49:34
ever read. I wouldn't take credit for that.
49:36
I'm just telling you, some people have said that, but I
49:39
thought a documentary was a way to get further exposure to
49:43
what's going on the monetary system and why Silver, among
49:46
other things, our solution for the problem?
49:49
Because if we don't keep the money power in our own hands,
49:53
the way the bankers want to take us is a more than an Orwellian
49:58
nightmare. I mean, they want to be able to
50:00
trace tax and basically control everything that we that we buy
50:06
and wouldn't matter. Money wouldn't be freedom
50:10
anymore. You wouldn't have financial
50:12
freedom. You could have a billion dollars
50:14
in silver. They had control of it.
50:17
Then they they could dictate what you could buy or when you
50:21
could buy it or what school you could go to or have a big
50:24
apartment sizes or any of that stuff.
50:26
And that's the direction. China is already gone and that's
50:30
the model the central bankers want to follow.
50:32
So it's rather scary, but it's not there yet.
50:35
And people like you, Ron, are spending the spreading the word.
50:39
And the more we get silver into people's hands and use it as its
50:43
ultimate form of money. Spend your whole stack, but you
50:47
know anything you've got or give it away too.
50:50
You know it's better to give than receive.
50:53
And I truly believe that. You know you're going to give
50:55
your kids something, or your grand kids or your niece and
50:58
nephews or whatever. Give them a silver coin, or give
51:01
them 1/2 of an ounce coin, or give them a silver quarter from
51:05
the old days or whatever. They're probably not going to
51:09
spend it. They might learn something about
51:11
real money. And if you learn about real
51:13
money, you learn about reality. So I'll leave it.
51:17
I'll leave it at that. Thank you, David.
51:20
Again on behalf of myself, the viewers, it's been great talking
51:24
to you and I certainly hope that I'll get to see you again here
51:28
in the basement. Maybe the bear behind me has a
51:31
blindfold on that says $2500. We're going to take that off
51:35
when gold hits 2500. So maybe we'll we'll have you at
51:39
the the Virtual party. Great.
51:41
I'd love to be there. Thank you.
51:43
All right. Thanks, David.
51:44
We'll talk to you soon. First, Mining Gold is a
51:48
development company advancing two of the largest gold projects
51:52
in Canada, Spring Pole in Ontario and Duparque located in
51:56
Quebec. Each already has 5 million
51:59
ounces of gold reserves, but exploration initiatives are
52:04
underway at both projects to find even more gold.
52:08
First, mining is well financed, has zero debt and owns an
52:12
interest in four additional Canadian Gold development
52:16
projects.