gold really acts as a barometer not a thermometer you want to know how hot a day it is you look at your thermometer but if you look at if a storm is brewing or not you look at the barom barometer of gold is saying problems ahead a lot of people start to wake up to the bull market in the metals and say oh my goodness I can't afford a gold coin at 3,200 an ounce but I can still buy silver at 70 bucks and that spillover really will take SAR to I think outperform gold probably two to one 3 to one maybe four to one what's the out look for precious medals going into Q4 end of the year following a potential fed pivot next week and uh and what many people are calling a potential recession by year end David Morgan is here to give us his forecast and update he is the publisher of the Morgan report and he's an expert on precious metals good to have you on the show David welcome David Lynn it's great to see you again thank you yeah good to see you and uh let's start by talking about precious medals let me flip over to my screen first and then uh we'll talk about precious metals and then we'll talk about all the factors and drivers of the economy um behind the precious metals prices so here we have if you look at my screen a a a gold price chart year to date uh gold is up tremendously in fact just today we're speaking on the 13th of September gold has broken new all-time highs this week as you can see by this big uptick this green bar let me overlay this with silver however I'm going to put silver on same percentage scale so we can see how they grown together in the last uh couple of months so year-to date silver has started to outperform Gold 28% up year to date versus Gold's 25% over the last year though gold is still up more 35% versus 34% and um roughly equal I think the question that some silver investors have uh for you David is why is it that silver has not outperformed gold in this bull cycle typically they move together but typically silver has a beta to the upside and downside so why is it that things are a bit different this time tough one to answer David but first of all if you go back you know 20 years ago or whatever silver used to lead quite often now they do go back and forth I think the fact is mostly psychology which means you know you take someone at my age and you know I mean we're still seeing silver coinage in the you know the general population when I was a kid and then that ended in 1965 but people of my generation had a much more association with silver Bean money because they saw an the coin you know and that lasted I don't know how long you know 10 years 20 years but now almost everybody the next two generations have looked at Silver as an industrial commodity and it doesn't really ever get speak spoken about uh anything in the mainstream media I mean it post the price of gold and silver every day on Bloomberg or any major Financial Channel but s they even talk about it and when they do it's usually gold very seldom I mean I got on national TV probably four five six times uh in the bull run from 2000 2011 but that's pretty rare uh so I do think it's more about people not knowing or being educated on precious medals generally and then knowing more about gold or think they know more about gold than silver but the Dynamics for silver once they understand it I think you'll see more and more people coming to the silver Market on top of that I'll contradict myself even if people don't understand it and gold gets to pick a level I don't know it but 3,00 3200 a lot of people start to wake up to the bull market and the medals and say oh my goodness I can't afford a gold coin at 3,200 an ounce but I could still buy silver at 70 bucks and that spillover really will take silver to I think outperform gold probably two to one 3 to one maybe four to one what's the Catalyst for outperforming gold once more it's such a small market and there's so much pent up money seeking a safe haven so when that Dam breaks there'll be a flood of money into the precious metals a lot of it will go into silver because it's more affordable yeah uh to your point about silver being traded like a industrial metal let me just show my screen once more this is the silver price and I'm going to Overlay that with copper uh I'm going to use a new price scale just to illustrate the correlation here and over the last one year um very close correlation as you can see they've basically moved in lock steps so we know copper is used for a variety of things although from from from uh wiring in homes all the way to semiconductors uh can you tell us about some of the industrial use cases of silver that may um explain why silver is trading so closely with copper well again it's as you point out David it's track copper because it's perceived to be an industrial metal in most cases there is you look at the percent es 70% of the silver markets industrial usage four or 5% is silverware and you got maybe 10% in jewelry so now what's left you know 10% 15% for investment demand that's very small but when you get a large investment demand like had in 2020 where the investment demand was 320 million ounces on an Institutional scale and 200 million ounces on a retail scale or a 530 million oun total you had more than half of the total silver Supply going into investment that could happen again happened in 2020 that's a fact going forward if the market gets scared and says gez I don't like stocks anymore I'm scared about the housing market uh I'm not too sure about my retirement I'm going to hedge my bets I'm going to buy some precious metals you know silver looks like a better buy than gold then you could see a large increase in institutional purchases in the silver market again I want to take a minute now to talk about different ways to to invest in silver as you may know silver has been one of the top performing asset classes in the first half of 2024 so how can we leverage Silver's gains I'm here to tell you that today's sponsor C Silver has great leverage to the silver price C has a leading growth profile highlighted by one of the largest Junior owned silver acid bases in Mexico the company has a 20,000 meter program underway at the high grade columus silver property to conclude in the maiden resource C is holding over 200 million ounces in the measured and indicated categories at the company's promontorio and Las sigara projects the company has an experience management team with a track record of success from exploration Discovery finance and production if you're looking for a company that will leverage the potential gains of the silver market do your due diligence on CY silver take or KTN on the tsxv learn more about the company in the link down below or scan the QR code here do you think that this recent uptick in silver and gold and copper uh are they indicating I guess economic stability I I know that people were concerned about the economy in the last couple of months especially since copper and some other base Metals including silver have been falling uh but now that we've seen a surge our fears perhaps reversing you think I think that gold really acts as a barometer not a thermometer you want to know how hot a day it is you look at your thermometer but if you look at if a storm is brewing or not you look at the barometer barometer of gold is saying problems ahead it wouldn't be doing that if it didn't forecast the future which is what gold does so it's forecasting to us stormy times are ahead I'm looking for gold to probably exceed today's price which are in the 2600 level by the end of the year could we hit 3,000 by end of the year I wouldn't say we won't or we could I think it's unlikely but I think we're going to see higher prices we are going to get a pullback here pretty soon it is overbought technically but uh you know things can stay overbought for a very long time well tell us about some of these um storm indicators so gold is signaling trouble ahead uh what are these troubles that are popping up the price you think there's a couple major ones David first of all we have a major contraction in the global economy so if you just type into a search engine know how many retail businesses are out of business from the year 2000 till now or pick another date you're going to find massive amounts of retail have been either gone bankrupt and they're totally out of business or food change and and other conglomerates that own you know chain stores like be Electronics or a restaurant the restaurant business is one of the best because even very good restaurant chains of down size by 30% 40% 50% they're only keeping 20% of their stores open that type of thing the mall situation in the United States is horrendous it used to be one of the major Hangouts for young people and now a lot of malls are just ghost towns if you look at downtown San Jose I just watched this video yesterday a guy took his camera I I was in high school in San Jose and down First Street and Second Street there were hardly any businesses open everything was shuttered for lease for lease for rent we build to suit all that stuff it's just a Ghost Town San Jose isn't the only place that San Jose is right next to Silicone Valley so if San Jose right next to Silicon Valley is doing that bad in the downtown sector we know the commercial real estate problem in the United States is massive but very few people are talking about it so the bottom line is global economy is Contracting we have less less of everything means a lower standard living not a higher standard living so I think the market barometer is showing that's what's ahead and then you go into the geopolitical side as far as ideologies are concerned and we get the New World Order and all the people many that view our type of shows are like you know the one world worlders and all that I go along with part of that but you also see a contraction in me me first take uh Mexico for example with lithium and it's you know been nationalized what happens is as the economy gets physical economy I'm not talking about the financial markets that don't reflect the real e the gold knows the the real economy so coming back to that thesis it says wait a minute this nation State's going to hold on to their silver because it's not they're not getting a fair price for it or they don't want dollars anymore they want you know bricks currency or whatever's in our future so that's the two things that signaling an overall deflating amount of physical goods and services in the global economy and also a more nationalistic me first I got to look out for my people uh beyond what you'd hear from the one world saying you know we got it all under control and it's one world governance that is not in uh in my view a guarantee all right we're going to break that down let's talk about the uh business side first since you brought that up as you were talking I did exactly as you said put on a put on a search engine I use Chad gbt how many retail businesses have gone bankrupt in the last year according to the search results that it came up with we had a 34% increase in commercial bankruptcy filings in the last half of the year compared to 2023 for the broader context total bankruptcy filings including personal and business Rose 16. 2% over the last 12 months this is just the last year I didn't even put in the last 10 or five years like you were talking about but okay David uh to your point uh small businesses are slowing down now there's been a lot of speculation as to whether or not we can turn this around can the government turn this around you think by the way I'm just bringing up the election uh because that's trending kamla Harris promised to incentivize small businesses and startups with a 50 ,000 what appears to be a grant uh it used to be $5,000 to help startups now she's raising it that to $50,000 so could we possibly turn this around in the coming years you think well I hate to be pessimistic or sound that way I doubt it is there's always a possibility problem is it really doesn't stem from government I mean the real way to work your way out of it is let the free market be free and then uh have less restrictions and let the marketplace itself reprice everything and then you could maybe get enough uh increase where you could actually start to pay down the debt I really doubt it I think we're past the point of no return mathematically I see very little likelihood but I think the government will do everything in their in their hat of tricks to pull out whatever they think will work none of it will in my view but it'll off escate the real problem because they created the problem they can't really create the solution I mean only way to really create the solution is to really cut back well beyond what anyone politically either part is willing to do and that's why unfortunately these type of massive inflationary bubbles usually pop on their own without any input the market itself just says look I don't accept these US Dollars anymore I don't know how much they going to be worth you know in a month and a month from now will we get to the US dollar highly doubt it but the psychology ology is oh my goodness I better spend this dollar now rather than the next month or the next paycheck because it's losing value so fast I fear what I'm going to be to buy uh on the progrowth camp this is just another argument people say that well interest rates could be coming down after a Fed pivot and even though prices are still high compared to a few years ago the rate of inflation which is the rate of change of prices has has slowed down somewhat so perhaps businesses could see improved margins with low interest costs and lower inflation overall and that may help them survive what do you think well I think everything you said is spot-on correct but I also would argue that the markets are so distorted and convoluted right now that a lot of these gains are going to be in the bond people you know making uh making a profit on the bonds because as interest rates come down brond prices go up so there'll be tons of money that will make quote unquote more money without producing anything physically beneficial to the society or the economy and so I think the idea is that through these business Cycles you lower rates and you know you can reboot the economy and start growth and start getting better tax receipts and all those things we taught in business school but at this point in time I don't think it could do very much because there's so much systemic inflation that's been built in where the average person even the average small business owner knows how much it costs how much more it costs for groceries how much more it cost for labor how much more it costs for almost anything going into a business electricity cost cost of the building or whatever so there's a lot of costs that are already a big hurdle so yeah the rate comes down it goes from you know the high of 8% it's now 2% whoopy do I still have to pay let's say 50% more starting a business today than what I would have started a business in say 2020 so now those costs have to be overcome which means your prices have got to be higher than what you might have charged five years earlier hope I'm making sense because the pervasiveness of inflation is what most people don't understand especially when it's low but once it starts to get to a certain rate then the inflation psychology takes over and people can't get it out of their heads so the CPI uh headline CPI has been steadily falling uh the latest reading came in a little bit higher than expected however um what is your overall read do you think that we're going to get um a return of inflation in the US I do and I want to make a couple comments because I know how smart you are and I prepared I always prepare but prepare for you a little more than I normally oh I appreciate it well I looked up the CPI uh from the year 2000 I said okay I bought gold in 2000 at 252 the bottom what would it cost me today and according to the government's numbers it'd be roughly double but then I looked at the money supply which is also a government statistic and the money supply from 2000 now is up 20 fold so if you look at gold as the barometer gold went from 250 to 2500 round numbers it's up tenfold yet the money supply is up 20 full M1 if you want to look it up so what I'm suggesting is that gold is keeping place with the general Trend but it really hasn't caught up to the total amount of let's say funding money that's been printed over the last decade or two decades and a uh two decades or more but it is doing its job and so you you could argue I mean this these are you know these are aggregate numbers I mean it's the total inflation and what do they put in inflation is we all jokingly know food and energy been eliminated which are the two things humans need the most but regardless we got a huge increase in money supply gold reflected that and I think it's still got a long ways to go by the way uh speaking of the money supply since brought that up here is the M2 I know you talked about M1 but here's M2 just on the St Louis fed website and I'm showing this as an annual percent change basis so uh let let me actually just change this to percentage change from a year ago okay so now you know in the last year and a half two years three years almost the uh percentage change from a year ago of the money supply has been trending down it's plat it's bottom trough now it's going back up what does that mean for financial assets going forward you think a tough one first of all let me just come in out coming down I mean that's deflation area and that's really to get a handle so the dollar has more value but now it's gone the other way and you're asking what'll happen I think it'll continue to push all Financial assets higher unfortunately if you go back to history we know what happens will this happen in the US markets or not we don't know what we do know is if you overinflate then uh the wymer Republic Zimbabwe Argentina any of these smaller countries their stock markets just keep going up up and up and up and up because it's the only place most people could get into to mitigate some of the destruction of the currency will that happen in the US or not I don't know I mean you know it took us 200 years to get a trillion dollars in debt now after 200 years we're adding a trillion dollars almost every quarter to the US debt basis so we are accelerating or going exponential here on the on the um money supply M2 coming down really was a breather and kind of paused the markets now that we're lowering interest rates the market smells that and gold the barometer is showing us ahead probably going to see more of the same which means more depreciation of the currency more destruction in the dollar and that means more dollars to purchase whatever you want to talk about stocks the you know grocery store wherever okay I've zoomed out this chart here so this is now showing the same thing except zoomed out all the way back to 195 well 1960 and it's interesting to note that in the history of the US not since basically the second world war or before that the Great Depression how we had the M2 contract in negative territory usually it's you know the growth has fallen but it was still growing at 1. 6% 0.
5% very rarely has it actually gone to negative territory a lot of economists were speculating that this would cause a huge contraction to the economy but we didn't get a recession this year even though we had remember last year we had two quarters of consecutive negative GDP and people said that's not a recession that happened yeah and then uh but uh are you just surprised that this happened and we didn't get a gray bar here that designates a recession I am but you know it's the inconsistency of the political class and our mainstream economists I mean by definition we hit one but they don't acknowledge it I don't worry too much about you know the mainstream obviously I've been an intuitive and thinker and a contrar in most of my life sure I never say they're wrong it's just the metrics they use keep changing so you know it's like changing a yard stick when you're building a house what kind of a foundation will you have so if we keep changing what the CPI is actually comprised of or what the money supply looks like and that's that's a given I mean this dip down there really should have really cooled off the economy and it certainly has changed the rate of inflation but we still have inflation so again gold saying look out I think uh we've got more currency destruction head I think they had the opportunity to keep it going and really scare the heck out of the markets but I think the FED has got enough pressure on them where they're pretty much throwing in the towel and turning the towel means as I've said three times already yeah markets going to be in Havoc one explanation is fiscal dominance so here's an article from CNN uh CNBC rather according to a Penn Warton budget propos uh budget study uh former president Donald Trump's economic proposals would increase Federal deficits by 5. 8 trillion over the next decade almost five times more than VP KLA Harris which would add $1. 2 trillion so either candidate they're saying would increase the deficit over the next decade Trump's a little bit more um first of all do you agree that we're going to head into a period where we're going to get a lot more debt a lot more deficit I do that's a trend in motion that's really really gonna take down the global economy I mean not take it down to nothing happens but curtail a lot of it the trend of contraction will continue and the trend of trying to print your way out of it again what does that mean for inflation and assets I mean on the one hand we have um you know you know both candidates wanting to fight inflation with their own measures Trump increasing energy output camela uh price uh fighting price gouging so if fighting inflation is on the agenda but like you pointed out we're going to get an increase in the deficit so are we going to get a counterbalance in the forces here or is it leaning more towards the inflation side well we're going to see David is we're going to see businesses kind of tighten their belt and do the best they can to keep a profit margin and stay in business but if inflation continues uh as I see it you're asking me my strong studied opinion you're going to see a a labor bounce back in other words people gonna say wait a minute you got to pay me more I groceries are costing me too much and this is what the FED tried to avoid by being really kind of tough on going with these higher interest rates kind of curtail that the problem is it didn't work in my opinion and so time will tell I could be wrong I hope I'm wrong but I'm looking out six months year year and a half at the most where the pressures come back so strong that you're going to find in Canada in the United States in Australia in Europe people are saying I need more money this money isn't working I gotta pay more for fill in the blank there will be some things that come down my TV went out recently and I bought a TV from Amazon 200 bucks it's absolutely nothing compared to what I'm paying for food or my other bills but I have to admit the electronic sector still getting cheaper and better all the time okay uh what's the Federal Reserve going to do for the economy uh is 25 or even 50 basis point cut next week if they do cut is that enough to saay off of recession you think no it's not but I think there'll be a lot of rhetoric around it we're on our way and this is the first of many and we were conservative only 25 basis points maybe they'll do 50 but we you know we' got it solved you know they're they're going to put on their regular dog going to tell us they have it under control but if you actually went in with the secret camera and sat down and talked to some of these fed Governors or Pal himself they were honest they'd tell you they don't know what to do are you concerned about another banking crisis uh David earlier this year uh we had one or two bank failures last year of course that made headlines around March uh government came in and back stop it and um now it's kind of died down from the news what do you think going to happen next I'm always scared about a banking crisis I'm probably overly scared you I try to mitigate it I try to be objective I try to just look at the facts but you know when bearing's bank went out probably before you were born David that was one of the stalwart banks in the UK for centuries thought man this is it because these banks are all interconnected when you have a big money center Bank like that that goes down it usually takes a lot of other banks with it but in the paper money chase you always have the central bank that's able to come come in and you know throw some digits on a computer and throw them at the banks say no no no it's okay it's okay and that's really what's taking place but it's still possible that we will have bank failures we've already seen them Sil the Valley Bank think it was the second biggest fail in the last decade or two so it does scare me because they are interconnected and there's not a lot of solvency left in the banking system I mean if everybody went to get their money out at one time it's impossible but that's based on the rules of Federal on a fron Reserve System I don't know David uh there's 67 banks that are on the watch list last time I change I'm sure that number has changed by now but that's enough is that enough dominoes to fall to hit a bunch of other dominoes I don't know that's not what you want to see happen the systemic risk is what we want to avoid we don't want you know Bank a b and c taken out you know three Banks go down and take six more down and take 18 more down and take 36 more down we don't want that and I think the fed's mitigated that especially in 2008 and they've come to the rescue here as you as youve outlined here recently can they continue to do it I don't know could it get away from them that's the stance I'm taking could not would probabilities are low but in 2008 we got a lot closer than most people know well then ultimately your intuition what does that tell you in terms of capital flows we talked about bonds I think you said if interest rates go down possibly bullish in bonds where do you think investors are gonna put their Capital into the next year is it going to be more risk assets is it going to be more defensive stocks is going to be uh precious metals is it going to be bonds um real estate hard assets what's very sophisticated will be in the bond market it's the biggest most looking Market out there sure the new bees or I say this the new people and seasoned investors both will see an asset shift so stocks maybe not so good real estate not what I expected I'm moving into and it flow in the precious metal some of it I think you'll see um you know durable goods and the safety type things utilities that type of thing more emphasis the market will be looking for value stocks and one of the best value stocks across the board are actually the gold miners the gold miners have got huge margins in many cases and those bottom line numbers will start coming to anyone that runs their algorithm on a value based business not caring what the business is just show me who's making money and the gold miners are so they're undervalued so I think we've started the turn to run to Gold that I like to talk about there's no fever like Gold Fever all these analog all these little cute sayings around this industry but the truth is they're there for a reason and so I think the Run of gold is started with the central banks buying what they've done the last couple years that set the foundation now we're starting to see some of the major headed hedge funds come into gold we're seeing some pensions come into gold and so I think that trickle is starting to become a flow and I think the trend is pretty clear that we're going to see more and more change of asset allocation from Financial paper assets into the hard money Camp Commodities durable goods and things of let's say True Value more of a value investing approach rather than a follow me in the tech sector approach what's your explanation for why the central banks especially the eastern central banks last year bought so much gold two reasons one it's the money of Last Resort so in the worst case banking crisis if there is one they have a foundation to restart the second one is is mistrust of the dollar that the dollar dominance is starting to unravel slowly but yet you see more and more countries that are coming into the bricks which is really nothing all that unique it's basically a Consortium of countries that say we'll trade in each other's currency circumventing a dollar which means you don't have to have a dollar based uh commodity situation where everything has to be paid for in dollars not anymore okay let's talk about the dollar now this is the uh dxy so the dollar versus a basket of other currencies over the last year uh or year to date you can see that dxy has basically erased uh the strength that it's gained in the first half of the year if you zoom out however in The Last 5 Years it just looks like it's been trading range bound um so do you have a medium-term out look for us and for the dxy given the fact the FED is cutting but other central banks as well more of the same I think it's going to continue sideways for a while I mean I remember when I started in on the internet about 1999 the dxy was 120 yeah and I predicted you know the Market's coming down and it went from 120 down to I think 70 something and that was the run and gold I mean we went in 2000 at 252 and we ended in September 2011 in 2000 I mean we had like an eight-fold increase we had 11 straight years of a gold bow market and then when you see where we got the bottom then uh you know we started to come up and you know we got into this long sideways to down for gold now of course we're making new highs as we both know but it was a long period of consolidation much longer David than I anticipated I thought I called the top in 2011 by the way I said this is it and I said this is it for a while my a while was two or three years well was wrong while was until you know last year or so well let's talk about that do you think gold could repeat 2012 which is to say uh in today's environment it could go down from uh you were talking about 2011's highs um from 1,00 all the way back down to about 1,000 that's an 80% look like a yeah it's a 50% drop but yeah um could we see that again this time I mean are the conditions ripe for that kind of drop this time around you think it will be eventually but not right now no I mean right now the trend is up and the third leg up is us the strongest as far as D it's slow it's the fastest in duration and it's also the biggest in uh in move normally I mean things all can change so if we got that that move from what I keep talking about 250 to 1800 we could expect at least that big a gain on the next leg up so whatever that factor what five or six so take uh 2,000 and multiply it by six five I mean you got $110,000 goal which sounds absurd but basis what the money supply is it really isn't so we could see a lot we could go up fourfold from here over the next several years and once we get there yeah we could get a retracement it depends if we're not in a new monetary system if we're still in the US dollar based Reserve currency system I'd expect somewhat of a repeat I don't expect that David I think we're going to switch into a new system before in the next three years or less what what's this new system going to look like I don't know exactly I know what the you know Central Bankers have said Mark Carney has made three speeches uh he's not the lead of the bank of England anymore but Bank of England the United Nations Jackson Wyoming uh he said that they want a digital currency that's unbacked by anything with modern money Theory they want to be a to print as many digits as they have and he hinted that a cast as Society that's what they're shooting will they get it I doubt it but I think they'll at least do a trial balloon on it as things start to H let's say get more interesting to go forward and you think that's going to push people into hard hard assets I think a lot of people understand what's going on will yes ultimately then are you more bullish on gold right now or silver right now gold but uh longer term silver okay um well speaking of long-term I think some silver investors would like to understand why it is that gold has reached new alltime high several times in the last four or five years but silver hasn't retraced its $50 highs you know what what happened there what happened was what we talked about earlier David if you go back in history and you look at gold and silver the ratio was under 20 to1 so the most you had to pay for an ounce of gold was 20 ounces of silver that held for hundreds and hundred years was 13th century 14th century 15th century it wasn't until the end of the 18th century where silver was really demonetized so if the banks treated silver as a monetary asset believe me the ratio wouldn't be 85 to1 the ratio would be more like the classic ratio 15 to1 or maybe been 10 to but silver is being used in industry at 70% of the market we outlined earlier so any new buying on the on the monetary side will take the price far far higher and so two things as we said when gold gets too high a price for people to afford it it spill in the silver market and then you've got a dual Demand on Silver you got you know Elon Musk and Samsung and 3M and all these corporations that need silver they're out of business well they'll have to buy it and stockpile it if it starts to get a tight Supply and then the investor Community will see that and so they'll come on board so it'll be like a double dip where you get a kind of a Shark Feeding Frenzy potentially where both those demands come at the same time so it's a simple word money when silver is money it really follows gold or leads gold when silver is no longer money then we're in a situation where we are now where just a tiny amount of the market has to consider it to be money or a hard asset I mean you look at the rodium market rodium certainly isn't monetary metals never thought to be but people knew it was scarce Supply and Palladium was the same thing I made a great padium trade and I don't consider padium money I mean I could argue classically it is but coming back on point so you could just take the approach as industrial only that silver doesn't ask are you buying me for industry you buying me for investment it doesn't care but the demand is there the demand is there okay so you're saying that gold could or may not reach $3,000 but more likely it'll retrace uh or break a new all-time high to $2600 by year end so Silver's had a good run so far $30 today um shot up a lot last week or so uh started off the year around $23 so we're looking about a 30% 33% increase year to date um do you think it could close above 35 by the end of the year it could yeah really is interesting what's interesting uh is that I have a couple sources in China and one of them told me that the Chinese public is starting to buy silver again first time in about 50 years well I had this guy in LinkedIn reach out to me and he you know had all this information you L legit I looked at his profile spent some time you know doing a little background as much as you can and so I asked him I go you know I got the source and he says this and he verified it he said absolutely the guy spot on he goes the Chinese people are really looking at buying silver now what's one use case of silver that you think would industrial wise that you think would really push demand up significantly well of course solar is obvious I mean that's what's really run the market it's this you know amount of photov voltaics that are being being bought what's above and beyond that is I really don't know maybe it could be anything in the electrical sphere probably could be batteries I mean I think no one ever talks about you know silver batteries but you have a silver battery in a in a pacemaker you have it for your uh hearing aids silver batteries are very small very efficient last a long time so when you have a situation where you need you know power no drainage uh there's a lot of advantages reason you don't see many silver batteries except in those small applications is cost silver as cheap as it is is much more costly than doing a lead acid battery or lithium battery or that type of thing so the push is for the cheaper ones which is what you know basic economics if I can get the same power out of a lithium battery and only cost me this much to make why would I use a silver battery but if you look at the military and mspcs a lot of those batteries are silver-based because they have to be rugged they have to charge fast they have to be reliable they have to last a long time so I think that's an area that could not necessarily would come to the four but you get this EV thing and you start using a silver battery or two just some guys goofing off and all of a sudden they see how fast they can charge it and how long it lasts and the recycling of it makes you money doesn't uh you know cost you money there might be something to it have you talked to the silver miners at all and uh in regards to production I mean on the one hand we can expect silver demand to continue going up for the reasons we've talked about but can we expect Supply to out paste demand no talk to many and uh many of them Mexico many of the conglomerates you know the pan Americans ano Eagles and what you find is that silver mining has been flat for about the last decade and it's probably going to continue if you look at some of the largest Silver Mines in the world like freso uh penoles uh the Polish mine their grades are going down not up which means they got to dig more dirt to get the same amount of metal out and that's a sign of a deteriorating Market not an increasing Market I think all the really cheap uh silver has been mined so far there could be a discovery or two but that that would be it I don't think you're going to see a big increase so there's going to be a push to get more recycled silver than there is now I think that's one area that will be looked at further and further and um as far as the mining systems go uh I don't see a change I see it going flat for the next five years anyway and by the way as you know Matt Watson we talked about him earlier year or two ago he's of the same idea that the basis going forward for Mining and recycling is going to be flat for at least the next 10 years in his opinion yes absolutely all right well I appreciate your thoughts David uh where can we learn more about you read your work you can go to the Morgan report.
com and i' just like to take a couple minutes David and just let everybody know I'm working on a documentary it's about overcoming the fear stress and control of money it's called Silver sunrise.
