Comments Off on Silver Shortage? – David Morgan on SD Weekly Metals & Markets
SD WEEKLY METALS & MARKETS
Throughout 2015’s Severe Retail Investment Silver Shortage, Skeptics Claimed That Silver Itself Was In Abundant Supply & the Shortage Was Merely a Production Issue. Is There In Fact A Massive Shortage of Physical Silver Metal Developing in the Market? Renowned Silver Expert David Morgan Joined the Show to Present the Cold, Hard Data.
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Salivating over the prospect of silver getting over $18 and gold over $1,300? Not so fast, buster. The guardians of all things fiat had other plans for uppity longs. Even though a new, upside break-out signal wasn’t sent to paper traders, the paper accumulating COMEX spec longs continue to give the cartel trouble. As Dave Kranzler noted earlier this week, “gold and silver are being bought on every manipulated hit” (click here). Gold, in particular, has refused to surrender the mid $1,260 level, which has now become support. This is significant.
For many weeks, it was clear the cartel was attempting to erase gold’s momentum move following the February 11th intraday spike high of $1,263.90 After gold exceeded that level in early March, gold’s price managers were gunning to push prices below the 50 day moving average. They failed to break momentum, and now the low $1,260s area is serving as support and the cartel hasn’t even been able to get a test of the 50 day moving average precisely because traders and investors are buying the dips. Even the old trick of aggressively attacking silver this week failed to derail gold to any material degree.
This Friday, we were treated to a surprisingly strong retail sales report, which helped to put a bid on the dollar. At one point, the dollar DXY index touched the 50 day moving average at $94.85 and promptly turned south. But the index cash settled up $0.42 for the day. That’s a big move, and makes the reasonably strong recovery in gold all the more impressive. As I noted earlier this week, I don’t think the DXY is going to get over 95.
The “currency wars canteen” has been passed to America and for the time being, rather than have China devalue the renminbi against the dollar, sending shock-waves into financial markets as happened last August and earlier this year, it appears that a general strategy of engineering a higher yen and euro versus the renminbi and dollar are coloring central banker policy coordination efforts, and this, combined with the obvious rollover in the US economy emboldens my conviction that any further upside to the DXY is a non-starter.
In fact, I think the DXY will rollover starting next week, and part of the reason why gold has refused to buckle is precisely the market understanding that the dollar is going much lower, even in the short-term.
DAVID MORGAN’S OUTLOOK
David Morgan is cautious given the significant advance precious metals have turned in through 2016. He expects further upside for 2016 on balance, and that performance during subsequent years will be stellar. But David believes there’s a significant possibility for a period of digesting gains already racked-up in 2016 – a summer doldrums. Time will tell, but David is unreserved when it comes to the long-term picture for precious metals. In David’s assessment, we are in the “end game,” in the third and final phase of a major precious metals bull market.
Yesterday, the World Gold Council released their 2015 bullion market estimates. We took the opportunity to ask Morgan about where sufficient physical silver to affect price suppression has been sourced, and what the forward supply picture for silver looks like in his estimation. Morgan believes silver produced as a byproduct of base metals production will remain under pressure if the global economy continues to stagnate. Morgan also offered interesting insight into the small scale artisanal mining – “burro mining” – and scrap market analysis to help us understand silver supply and demand.
David Morgan’s new website is up and running, and he is expanding the frequency of complimentary reports in addition to his subscription service. To check out The Morgan Report, click here.
Comments Off on Dollar Demise: Silver Moves To China – David Morgan
TND Podcast Spotlight: SGT Report
Clif High’s web bot project has been long been predicting that silver and gold would skyrocket higher as the US Dollar loses its dominion as the world’s reserve currency. And as the once formidable Dollar ultimately begins to hyperinflate as nations lose all confidence in the Federal Reserve Note, the web bots predict triple digit silver prices and eventually even a 1 to 1 silver to gold ratio in coming years. Will it really happen? No one can say with certainty, but there are very concrete signs that the cracks in the western banking system and fiat Dollar are about to turn into gaping fissures. Meanwhile, China is hoarding PHYSICAL silver at the Shanghai Gold Exchange and openly encouraging Chinese citizens to acquire physical silver and gold as a way to protect their wealth. It’s a paradigm shift of epic proportion, away from paper Dollars and into PHYSICAL metal. David Morgan from the The Morgan Report is here to discuss it all. Thanks for tuning in.
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SGT Report is an “alternative media” website offering stories the mainstream typically avoids or distorts. The SGT Report team “hand picks” editorial content and also publishes in-house, original reporting. Click here to visit the SGT Report. This article is reprinted with permission.
David has decades of market experience working in the financial industry and investing and trading markets. David has also written 2 books about silver, the Skinny on Silver and his new book, Silver Manifesto.
David is also the CEO of a new precious metals royalty and streaming company, Lemuria Royalty.
During this 35+ minute interview, Jason asks David about the recent announcement from the Sprott Physical Silver Trust (PSLV) that they are buying approximately 5 million oz of physical silver to add to the trust.
Jason asks David if the timing of the announcement was perfect to counter the negative commitment of traders (COT) reports on gold and silver?
David thinks Sprott timed this purchase perfectly. Jason asks David how difficult it is to source 5 million oz of physical silver?
David talks about the physical silver market and how the silver market is decided at the margin.
Jason and David also discuss the additional silver purchases PSLV can make in the future?
Next, Jason asks David about the BREAKING NEWS in the precious metals space about Deutsche Bank admitting it manipulated gold and silver markets, paying a settlement, cooperating and handing over evidence and also helping implicate other conspirators (big bullion banks) who helped manipulate gold and silver.
David and Jason confirm this is the story Rob Kirby was hinting at for months. (Jason also emailed Rob Kirby before the interview to confirm this was the story he was hinting at).
David thinks this story may open up Pandora’s box as more evidence in the form of years worth of emails, instant messages and other forms of communication is handed over by DB to help implicate other banks.
Jason then asks David about the Soc Gen report saying silver supply will decrease by 9% in 2016 and by 13% in 2017 and if he thinks that research is accurate?
David says he thinks it’s pretty accurate but he and Chris Marchese will look at it more closely in a future edition of their paid monthly newsletter, The Morgan Report.
To wrap up the interview, Jason and David talk about the health of primary gold and silver miners and the bankruptcy of the Northwest Territorial Mint.
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