Silver-Investor David Morgan: Industrial Demand, Looper (Film), Dividends & Oil
How long have you been investing in silver?
Since my early 20’s, once I had a job and some sort of cash flow that was the real beginning. I did buy a few silver coins as a kid but nothing of significance.
What got you interested in silver?
I first discovered silver and really thought about it when the coinage changed in 1965 in the United States. I was eleven years old at the time and this got me to thinking about the monetary system. It seemed to me even as a kid that something was wrong but at that time I certainly did not know the whole story but it did spark a quest in me– obviously.
What’s the hottest story in silver right now?
There are really two stories, one is the Silver Institute just commissioned a study which forecasts an increase in Industrial demand of 27% through 2018 which means 142 million additional ounces of demand. The other story involves the silver stackers on a global basis are buying government minted coins in record numbers because many of them see the currency wars which we and others have forecast for so long.
Why do we constantly see record American Silver Eagle sales?
Simply more people are waking up to the truth with many websites such as Max Keiser with the buy silver take down JP Morgan as one of the best examples. This campaign really spread the silver story and the interest and ACTION followed and continues to grow.
What is the connection between precious metals prices and interest rates?
There is a correlation, at least in the last bull market. Gold and silver prices will continue to improve in price as interest rates climb until the real rate of interest is above the real inflation rate. If we use Shadow Stats.com and know real inflation is the U.S. is around 9%, that suggests gold and silver could continue to rise until we see interest rates near 10% or so. But we all know the system is very unlikely to hold together with that high an interest rate, which means the market itself will realize there is “no way out” this time and that just could be the place where the acceleration in the price of the precious metals goes nearly straight up.
Did you see the movie Looper? What did you think about the use of silver bullion in that film?
I did see the movie Looper, and reached out to the writer through a subscriber of mine that used to be in the film industry at a rather significant level. I never received a response. To me the movie indicated that in the future to do anything significant in society you will have to use real money — silver and gold.
What other investments do you like?
I think energy is an important sector, especially for those looking for income. If you do your research you can find companies that are viable outside of fracking that will be able to pay dividends to their shareholders. Energy (oil) is still the most important of all commodities because nothing happens without energy.
I also look at the technology sector, this is where we did quite well early on adapting to the cell phone industry before most people even knew they existed.
What do you think about Bitcoin?
I wrote a long article about Bitcoin which can be found by using Google and typing in my name and Bitcoin. Being free market- the market knows better than anyone (assuming truly free markets). This type of ideas time has come, however there are some concerns and some have been expressed by Charles Savoie whom has done research for us from the founding of Silver-Investor.com. Let me suggest people make up their own minds after getting some education on the matter. Personally, I still favor value backed systems so perhaps a Bitcoin type system backed by precious metals will evolve to the point where it truly does become the monetary standard on a global basis.
What is in your future?
I plan to continue to write The Morgan Report even after the peak in precious metals and we called the top to the best of our ability. It may “waffle” for a couple months as we determine what might be the next investment story that is underfollowed and unknown — similar to the silver story when we started.
What is in the future for Silver-Investor?
Actually at this point we are considering the possibility of selling the business when the market gets overheated. We would keep TheMorganReport.com but let the Silver-Investor go and move on, hopefullly to the next big thing.
What do subscribers enjoy when they sign up for your publications?
The Morgan Report focuses on Money, Metals, and Mining. We concentrate on the resource sector, with primary emphasis on the precious metals, but have invested in moly, copper, uranium, lithium, base metals, drillers and other companies. We provide a unique service by filming many of the mining trips and providing them to our members. Additionally, at the second level of service you can email questions directly to us and we guarantee they will be answered. Lastly Basic Plus Members receive a desktop widget that is our unique software/ Alert Service. Further description is available on the website.
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David Morgan (Silver-Investor.com) is a widely recognized analyst in the precious metals industry and consults for hedge funds, high-net-worth investors, mining companies, depositories and bullion dealers. He is the publisher of The Morgan Report on precious metals, coauthor of The Silver Manifesto, and featured speaker at investment conferences in North America, Europe and Asia.