David Morgan Takes Innovative View On Precious Metals Market

Photo: David Morgan Takes Innovative View On Precious Metals Market

The silver market has been stuck in a trading range for more than a year. In an interview this past July, David Morgan may have called the bottom of the market. It would take a decisive break above $19usd/oz to seal the deal, but with the supportive environment for precious metals that is emerging, that could happen any time.

Silver is a volatile metal, and when David Morgan said that the bottom was probably in, he said that the white metal may fall back towards $15usd/oz before recovering. He ended up being right on the money, and today the mid-summer lows are holding. Silver ended the week a bit shy of $17.50usd/oz, and given its ability to move quickly, the $19usd/oz level could come at any time.

David Morgan has a long history in the metals markets, and in his report he dives into the macro currents that are changing the financial landscape. He looks for opportunities for his subscribers that others may have missed, with a special focus on the silver and gold markets. In his last report he drew attention to an ongoing theme in the US economy, as well as looking at some emerging issues that could mean big changes in the gold market.

The Disconnect

In the post 2008 world, the financial economy looks increasingly distant from the physical economy it seems to represent. In his most recent podcast, Mr. Morgan talks about the announcement from General Motors that they may be terminating some of their models in the not too distant future. This movement would almost have to be in response to lagging sales, which doesn't bode well for the consumer economy as a whole.

GM isn't a niche business, and models like the Chevrolet Impala aren't low production cars for the rich and famous. When people are having trouble making ends meet, you can be sure that a new car isn't at the top of their list of things to purchase. When a company like GM has to take measures to ensure their survival against a declining consumer market, it is probably time to ask some serous questions about the economy as a whole.

It has been nearly a decade since GM went bankrupt in the wake of the crisis of 2008, and it would appear that they are once again finding the market to be challenging. The main difference between then and now is the root of the difficulty, and how regular people are spending what little money they have left. Given the disconnect between share prices and real world economic performance, it would be fair to wonder how much longer the post 2008 market dynamic can last.

The New Gold Mine

Not one to be put off by potential headwinds in the world's largest economy, David Morgan has a radical new angle for getting into gold on the cheap. What many people don't realize is that most of the gold that is manufactured into electronics hasn't been recoverable, and that may be changing. There are a few companies looking into how they may be able to “mine” gold from old electronics, and if they can do it on scale, it could be the next big thing to hit the gold market on the supply side.

There have also been moves by the Eurasian nations to accumulate gold, and with Russia's central bank looking to the Moscow Gold Exchange as a source for official gold purchases, it may be time to keep an eye on the gold trade across the major Asian economies. If you are interested in what factors may move the gold market going forward, the upcoming Silver and Gold Summit is a great place for you to look.

David Morgan will be joining a group of world class precious metals experts on November 20th and 21st in the heart of San Francisco for the precious metals event of the year. Other presenters like Doug Casey and Rick Rule will bring their own perspectives to the table, and there will be a lot for everyone to learn. It would be hard to imagine a better place to investigate what may be happening over the next few years, with a wide range of viewpoints to listen to, and many ways to play the potential bull market in silver and gold.