Precious Metals & The Block Chain, A Game Changer - David Morgan

00:00:11 I tell them my presentation, This time is precious metals to block chain a banking game-changer question mark is it? How many here in the audience own Bitcoin own crypto currencies raise your hand? Okay, good. Before I go into what I see for the future of precious metals combined with crypto currencies. Then there may not be right. I want to discuss what's been going on lately. All those that raise their hand are well aware of it.

00:00:53 Many of those that are in the audience are cost probably also well aware of it. We have been in a rather huge uptrend. It's called a parabolic move in the commodity circles in all crypto currencies. With Bitcoin being the most established most known probably best understood of all them. This I took this image off the internet public domain. It shows Bitcoins which really are electronic platform only there is no such thing as a physical Bitcoin that you could put your hand on.

00:01:30 With the little tulips off to the side which is the implication that perhaps the Bitcoin situation could be in a tulip bulb type of mania. Now I think the most important thing that I can say about this situation right here is the fact that not only are we going in parabolic the volume. How many here are paid members of the Morgan report? Do I emphasize volume when I do my videos? Every time right if it's not on volume it's really not that meaningful.

00:02:11 When you see an up move like we have in the price of Bitcoin. The volume at the bottom scale that's very, very significant. What that means is that as high as that parabolic move is right now. From what I know all my experience it's going a lot higher. It's probably going to continue on a parabolic move for a while. The tulip bulb if you don't know was really the first financial mania in recorded history. They actually had futures in tulip bulbs.

00:02:52 At the top of the market one tulip bulb was the equivalent of a skilled craftsman working for ten years. Can we say overvalued? I say that to say this that you know when these markets become a mania there's no telling how high is high. Again I just want to re-emphasize as much as that stock chart. That I showed you just a minute ago shows going parabolic based on the volume. We're not near the top as far as I can tell.

00:03:30 Now this is the chart of the tulip bulb mania. You can see most of it took place in one year. I'm not sure I've got the ability to do a laser pointer here. There if you just imagine have a laser pointer I'd be pointing about one third up that great big parabolic rise that hockey stick if you will. That would be my estimation of where we are in a Bitcoin world right now as far as price. I'm not going to give you a price I don't know the market knows the market always knows more than any analyst.

00:04:04 The point I'm making is that if you go a lot higher in a short amount of time. Does that mean you should get in or out? I'll leave that decision up to you. I'm going to continue on with my premise about where I see a marriage between the two potentially taking place. That's a little bit better curve as far as how it lasted. As you can see is at the top it was about a year long so only looking at 120 days of that year or more market.

00:04:36 You can see it actually went parabolic up to about the 150 level. Then it actually continued up slowly for 60 days or. Then once it pick it started coming down rapidly. I basically did a u-turn I mean at the time that the tulip bulb mania ended. It was no longer mania a tulip bulb sold for that it always sold for did a complete back forth. Another reason I know that we're not near the top of the Bitcoin market.

00:05:13 Is when you have somebody is like Mark Skousen who says he's an Austrian economist state is Bitcoin entering a new mega trend he's forecasting yes. It could be right I'm not saying that we aren't going higher I think I've said that about six times. I'm not that willing to jump on it with both feet I've nothing against it. I wrote one article on Bitcoin it's called my two cents of my two bits about Bitcoin. Those in the silver world know what two bits is, it's a 25 cent piece.

00:05:48 Again a lot of people are coming into this bringing new buyers in new buyers are going to drive the price up higher. A very strong opinion it's a resource opinion it's not based on what I feel is based on what I have researched. There is a huge problem really throughout the internet it's not just crypto currencies. Please take it in the big framework of the Internet at large or big data if you will or the Internet of Things. Take that Internet of Things down, down, down, down to crypto currencies with fit in that big frame.

00:06:27 I'm not picking on crypto currencies I'm talking about the Internet at large. The big problem is security. If you study this with any kind of diligence at all you will find is that. Every major leader in the space be it CNN be at Wired magazine be it Bill Gates bill won't say it. Several of that ilk that are at the top. Speaking in platforms like this to mega people because let's face it the Internet's. Where it's at IT is number one everything's off, off of a small computer which you call smart phone.

00:07:08 Every one of them to a man, woman says security is a problem. It is the hackers are out doing the non-hackers in other words the security professionals are not able to keep up with what the hackers are able to do. We've already seen that happen again and again and again and it's going to happen more and more. It's a war out there it's a cyber-war there's cyber war going on constantly that people are totally unaware of nation state to nation-state. That's just at the top level for sensitive information basically dealing with nation-state security in the war efforts.

00:07:46 Not to mention what I mentioning which is the hacking that goes on. In let's say at the retail market where we're looking at you know the Amazon type of transaction or crypto currencies or a way of serving saving wealth or a bank account or a brokerage account or any of the staff where all vulnerable to it. Just one I was going to pull off about three I thought one was adequate. The Bitcoin price crashes after exchange admits security breach of over sixty million stolen

00:08:17 Okay, this has already happened I've got you know experiential evidence to back up my case. I think it will happen more, more in the future. I know that you know. Jeff Berwick said you know very low key I walk buys you speaking. If you haven't looked at Bitcoin give it a look. I'm going to say don't. I'm free market if you want to load up on Bitcoins be my guess. What I am cautioning everyone about is that the internet is not as safe as you have been led to believe.

00:08:44 I really want you to walk out of this room knowing that if you've learned anything from these 20 minutes you've got to learn that. Again I want to emphasize it's not that I'm picking on Bitcoin it's the internet of things at this conference. I was referring to a moment ago one of the people that was an IT specialist said that already built. This is all news to me by the way. Already built into refrigerators, refrigerators that were made from like 2010 on have already got the chip or the software hardware in them that could connect to the internet.

00:09:21 Your refrigerator that's going to help you buy your milk when you run out already can spy on you. Another example was a gentleman sitting as a I think it was one of the CEOs of a new automobile company. It wasn’t Tesla was sitting while the technician had a laptop the laptop computer guy took complete control of the car complete control the car. This is what we're up against.

00:09:48 The main thing that we how offer with the hard money camp the golden, silver alone camp. Is it's a trust issue if you don't trust government if you don't trust fiat money. If you don't trust the central bank to manage the money supply efficiently well in, in an honest way. The only thing that people trust for the last 4,000 years or. In the precious metals it becomes a confidence or a trust issue. When you have something that you aren't sure you can trust such as electronic platform.

00:10:24 Something that has been trusted for a very, very long time like gold, silver is there a solution? I propose that there could be. I'm not saying there would be. I'm saying there could be so full disclosure. I am being I'm engaged on a let's say at a think-tank basis. I don’t want to get my ego too big here as a consultant to look at the possibility of a hybrid system. Which would use physical gold, silver primarily gold in a hybrid system. Where the gold was separated from the banking system the only thing that was in that high-tech security problematic situation is the transaction itself.

00:11:013 I'm going to digress I'm going to talk about the gold and silver debit card it was started by my friend in Spokane Washington. Is there anybody in this room besides me owned that debit card? One in the back okay and David has one too. This is a system where you deposit gold, silver with the depository. That backs your debit card they also have a cast side that is just like any debit card anywhere. Let's just say that you bought silver at 10 you put your money into the depository.

00:11:45 I'm not suggesting all of your silver or gold just a portion. It's very easy to spend because to the vendor they don't know the difference. You just pull out your card you swipe it through a Walmart of the gas station or the restaurant. I eat out a lot I'm single they don't care and it gets debited out. What the important point is, is that the metal is in a depository that's arm's length from the bank. As a you know tremendous example a horrific example there's a bank run there's a bank though there's electronic problem.

00:12:20 The banking system fails for a month or a week or ten minutes the groom's silver separate from it nothing happens. That's the kind of proposal that I want to make into this realm because whether the deposit of the metal is separated from the transaction side. The only thing that that risk is if you make a hundred dollar transaction silver through a crypto currency that what's risk but your hundred ounces of whatever metal is not at risk. This could take place in Indonesia, Indonesia is where I am being asked to help think this through.

00:13:02 First of all if you go to Indonesia learn something about it. I know very little so please don't ask me a lot I'm still learning studying. You know its huge population half the population is under 30 years old. Only 10% are on the tax rolls. They don't want to start a bank account yet they all, ALL, all own gold. The way they transact in gold is every time they need to borrow money for whatever purpose. It's like these payday loans that you see all over the places they go into a state-run pawnshop.

00:13:37 They put up their gold earrings or necklace or coin or whatever they get the equivalent amount less the pawn shops. You know Holdings with like 80% of the value given to them as a loan. They do with it whatever purpose they need it for then they come back they pawn it back. The infrastructure is already set up but what the government of Indonesia wants. This gentleman too contacted me is to make that platform where a smart phone does the transaction.

00:14:09 They're not even going to tax it. They are in the aren't they're not going to use the word tax. They're just going to have a transaction fee. The governments involved in every transaction they're going to take a little bit of that goal for everybody that uses that platform. That's what we're working on. I think that's more viable as far as having the real backing to an electronically based currency. Because my biggest fear on electronically based currency is counterparty risk.

00:14:36 who is it at the other side of that electron stream that owns that crypto currency? What is the real value behind it? Do you know who they are? Is what's the ability to create them out of thin airs is the same as the Federal Reserve? I know Bitcoin is limited I know that. Are all of them? Who determines the market? You know there's a lot of questions I still have about you know the crypto currencies in general. I'm not an idiot I can see the direction that everything is moving everything is moving to you know real time really quick in an Internet of Things it's not going away it is the way of the future

00:15:17 I'm trying to be what I've always been. You know my mission statement is to teach empower people to understand the benefits of an honest monetary system. For me that's something that you can trust throughout the ages. Doesn't mean it has to be a gold standard only. I'm already willing to move into this type of a situation. The market will determine if it's a good idea or I am full of it. You know maybe I'm full of it maybe. First of all is it going to be implementing the answer to that is I'm not certain it could be certainly working on it.

00:15:47 Will it happen? I don't know I think someone will do it. It's not going to be just being working with others of course. 50% under 30 I mean if these people can sign up over their phone get an account the next time they walk into a pawn broker. Now they can leave it with him or her or the establishment. Not have to come back think of that I mean this it could explode really, really rapidly. I have to sell them gold there we own it it's not just it's been to their DNA for her for generations.

00:16:24 As I said it's already been done with the debit card that I outlined. It's just one notch up putting it on a smart, smart phone platform where the equivalent. I want to talk a little bit about what we do that's a little different. Then some of the other newsletter types basically people is that's what how do you invest. Will you get to see it I mean what I put in the Morgan Report is what I do. It's not like I have some other system or some other way or you know you see my timing you hear me speaking.

00:16:58 I show you why I mean you know Peter is been with me for years. I mean good better different you know big money goes into big companies. Our approach is one that is tested tried true. Because you know cheap stocks are cheap for a reason. You know pennies stocks are in the pennies for reason do pennies become dollars? Yeah about every one out of 4,000 or. You know most of time there's a lot of dilution a lot of times I fail. If you want to make serious money you put serious money in these serious companies.

00:17:35 If you want to speculate then speculate I do both I teach both. If you think you're going to make good money putting lots of money in pennies stocks good luck. We're trying to mitigate the risk the way we do that again is by looking at. What's profitable? Let's face it if you're a gold mine you mind gold. It doesn't matter if it comes from the Moon, Zimbabwe, South Africa or Montana it's the same element. What you got to figure out who makes the most money with that product. It's not like Rice Krispies versus Cheerios I mean its gold.

00:18:21 To find that out doesn't take a lot of work the streaming companies are the one that makes the most money. That's why you know Franco Nevada one of my long-term Holy's compounds of 20% every year. If you follow my timing service you can make 40 percent writing covered calls on it. Someone else rent your stock for me these are the kinds of institutions hold. These are the kind that people that with money hold. Then maybe you want to speculate and one of these companies out here that's fine.

00:18:49 Maybe take what you rented your stock for, for a month in Franklin Nevada plug it into one of the juniors that you like. You know I'm okay with that I just teaching you what I do. If you want to go broke fast do what I did between eight twenty, twenty seven. I listened to every story stock out there put all your money every junior you ever heard of this going to make it make you rich. You'll find out how rich you'll get. What is limited opportunity? I'll be at the booth after this conference.

00:19:21 If you hear at the conference you act within thirty, thirty days you know kind of free trial. By the way you know absolute letter if I don't like it you were giving your money back. I'm not here to rip off anybody you know it's not for everyone. Believe me it's not for everybody could never let bought a newsletter before don't. You know you have free choice you know we'd like you to choose us is free will or believe in free markets. It's your free will to determine if it's right for you and I honor that because it's important it's important for you to know that. I'm done I'm sure there'll be more questions I'll be at booth 107. Thank you for your attention.