Best of the Week
Most Popular
1. Investing in a Bubble Mania Stock Market Trending Towards Financial Crisis 2.0 CRASH! - 9th Sep 21
2.Tech Stocks Bubble Valuations 2000 vs 2021 - 25th Sep 21
3.Stock Market FOMO Going into Crash Season - 8th Oct 21
4.Stock Market FOMO Hits September Brick Wall - Evergrande China's Lehman's Moment - 22nd Sep 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
7.AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
8.Why Silver Price Could Crash by 20%! - 5th Oct 21
9.Powell: Inflation Might Not Be Transitory, After All - 3rd Oct 21
10.Global Stock Markets Topped 60 Days Before the US Stocks Peaked - 23rd Sep 21
Last 7 days
Stock Market January PANIC AI Tech Stocks Buying Opp - Trend Forecast 2022 - 21st Jan 21
How to Get Rich in the MetaVerse - 20th Jan 21
Should you Buy Payment Disruptor Stocks in 2022? - 20th Jan 21
2022 the Year of Smart devices, Electric Vehicles, and AI Startups - 20th Jan 21
Oil Markets More Animated by Geopolitics, Supply, and Demand - 20th Jan 21
WARNING - AI STOCK MARKET CRASH / BEAR SWITCH TRIGGERED! - 19th Jan 22
Fake It Till You Make It: Will Silver’s Motto Work on Gold? - 19th Jan 22
Crude Oil Smashing Stocks - 19th Jan 22
US Stagflation: The Global Risk of 2022 - 19th Jan 22
Stock Market Trend Forecast Early 2022 - Tech Growth Value Stocks Rotation - 18th Jan 22
Stock Market Sentiment Speaks: Are We Setting Up For A 'Mini-Crash'? - 18th Jan 22
Mobile Sports Betting is on a rise: Here’s why - 18th Jan 22
Exponential AI Stocks Mega-trend - 17th Jan 22
THE NEXT BITCOIN - 17th Jan 22
Gold Price Predictions for 2022 - 17th Jan 22
How Do Debt Relief Services Work To Reduce The Amount You Owe? - 17th Jan 22
RIVIAN IPO Illustrates We are in the Mother of all Stock Market Bubbles - 16th Jan 22
All Market Eyes on Copper - 16th Jan 22
The US Dollar Had a Slip-Up, but Gold Turned a Blind Eye to It - 16th Jan 22
A Stock Market Top for the Ages - 16th Jan 22
FREETRADE - Stock Investing Platform, the Good, Bad and Ugly Review, Free Shares, Cancelled Orders - 15th Jan 22
WD 14tb My Book External Drive Unboxing, Testing and Benchmark Performance Amazon Buy Review - 15th Jan 22
Toyland Ferris Wheel Birthday Fun at Gulliver's Rother Valley UK Theme Park 2022 - 15th Jan 22
What You Should Know About a TailoredPay High Risk Merchant Account - 15th Jan 22
Best Metaverse Tech Stocks Investing for 2022 and Beyond - 14th Jan 22
Gold Price Lagging Inflation - 14th Jan 22
Get Your Startup Idea Up And Running With These 7 Tips - 14th Jan 22
What Happens When Your Flight Gets Cancelled in the UK? - 14th Jan 22
How to Profit from 2022’s Biggest Trend Reversal - 11th Jan 22
Stock Market Sentiment Speaks: Are We Ready To Drop To 4400SPX? - 11th Jan 22
What's the Role of an Affiliate Marketer? - 11th Jan 22
Essential Things To Know Before You Set Up A Limited Liability Company - 11th Jan 22
NVIDIA THE KING OF THE METAVERSE! - 10th Jan 22
Fiscal and Monetary Cliffs Have Arrived - 10th Jan 22
The Meteoric Rise of Investing in Trading Cards - 10th Jan 22
IBM The REAL Quantum Metaverse STOCK! - 9th Jan 22
WARNING Failing NVME2 M2 SSD Drives Can Prevent Systems From Booting - Corsair MP600 - 9th Jan 22
The Fed’s inflated cake and a ‘quant’ of history - 9th Jan 22
NVME M2 SSD FAILURE WARNING Signs - Corsair MP600 1tb Drive - 9th Jan 22
Meadowhall Sheffield Christmas Lights 2021 Shopping - Before the Switch on - 9th Jan 22
How Does Insurance Work In Europe? Find Out Here - 9th Jan 22
MATTERPORT (MTTR) - DIGITIZING THE REAL WORLD - METAVERSE INVESTING 2022 - 7th Jan 22
Effect of Deflation On The Gold Price - 7th Jan 22
Stock Market 2022 Requires Different Strategies For Traders/Investors - 7th Jan 22
Old Man Winter Will Stimulate Natural Gas and Heating Oil Demand - 7th Jan 22
Is The Lazy Stock Market Bull Strategy Worth Considering? - 7th Jan 22
METAVERSE - NEW LIFE FOR SONY AGEING GAMING GIANT? - 6th Jan 2022
What Elliott Waves Show for Asia Pacific Stock and Financial Markets 2022 - 6th Jan 2022
Why You Should Register Your Company - 6th Jan 2022
4 Ways to Invest in Silver for 2022 - 6th Jan 2022
UNITY (U) - Metaverse Stock Analysis Investing for 2022 and Beyond - 5th Jan 2022
Stock Market Staving Off Risk-Off - 5th Jan 2022
Gold and Silver Still Hungover After New Year’s Eve - 5th Jan 2022
S&P 500 In an Uncharted Territory, But Is Sky the Limit? - 5th Jan 2022

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Silver as Money? Give Me a Break!

Commodities / Gold & Silver 2009 Oct 02, 2009 - 03:25 AM GMT

By: David_Morgan

Commodities

Best Financial Markets Analysis ArticleTom Jeffries of HoweStreet.com Interviews David Morgan of Silver-Investor.com.

Tom Jeffries:  David Morgan is editor and publisher of The Morgan Report. Full disclosure: it is my favorite publication. David is one of the leading experts on silver in the world. The Web site is silver-investor.com. You get all the details about The Morgan Report.


Mr. Jeffries:  Everybody’s talking about gold’s place in the “new world order.” Woo! Let’s not get spooky, folks. How would you expect silver to act in the event of a world oligopoly, David? 

David Morgan:  I think that, as I wrote so many years ago in Silver Investing Rules, no one likes to be a prophet of doom, but silver is the money of last resort, and I still believe that. However, gold certainly has a higher monetary aspect to it as basically a store of wealth, a store of value, and a safe haven. Silver has those qualities because it’s an industrial metal as well.

But from a practical perspective, silver is the one that you’d be actually using in times of crisis. Not that you wouldn’t use gold, but if something happened and you needed to get a loaf of bread, a gallon of gas, pay rent, or keep your landlord off your back, and you had some silver coins, that would be a lot more advantageous to you than a gold bar, which would be pretty hard to divide up and pay your landlord or whatever.

So silver really has been money in more places for longer periods of time than gold has, and whenever I make that statement it seems to get some people upset, but it’s a fact, it can’t be disputed. Through all of recorded history it (silver) has far more functionality as money than gold does.

Mr. Jeffries: Okay. I’m playing devil’s advocate for a second here with you, David. I guess that begs the question, and maybe you can explain, what central banks and those wily governments out there are going to do to resist the allure of silver for the average investor? As a money alternative?

Mr. Morgan:  Well, that’s a great question, Tom, and it’s a tough one. To really get an in-depth answer to that question you should go to our Web site, silver-investor.com, and go in the archives section and read everything Charles Savoie has written for the last decade.

Mr. Jeffries:  Yes, okay; I have read his work he has provided a massive amount through the years.

Mr. Morgan:  Readers get an eye-opener on how important silver is as money, what the central banks really think of it through history, and why they basically demonized and demonetized silver as their main concern so many years ago, hundreds of years ago, really. You’re looking back to, say, the Crime of 1873, 120-130 years or so ago.

And once that was accomplished, you went to the gold-only path. And then you had a monetary metal that was much easier to control because the banks had most of the gold anyway. So if the banking community and financiers got rid of silver, you didn’t have a problem with the people (or the peons and underlings, as the bankers view us), and you just had gold, and they owned it, so they could make the rules.

And as you know Tom, and very few do, The Wizard of Oz was basically a metaphor for going to the gold-only standard. There’s a gentleman, whose name I can’t recall, who wrote an article that’s on the Gold-Eagle Web site about how the gold-only standard eventually leads to the fiat system, but when you have bi-metalism, which is where you have both gold and silver circulating freely, not necessarily a fixed ratio by government but what the market could decide, you have a much freer and safer system.

You have a lot more stability in the system than you have on a gold-only standard, but very few people know that, very few people believe it, very few people study it. And if this is the government of the United States, supposedly of the people, for the people, and by the people, you should look at what the people use as money and why they use it.

Of course I take that perspective and because of that, I’m very, very biased toward silver being not only a monetary metal but also probably the most high-tech industrial metal required for today’s world.

Mr. Jeffries:  I was shocked, and I don’t know why this was so obvious, standing right in front of my face, when I found out that Dorothy’s shoes were originally silver in The Wizard of Oz and then I realized what Oz is short for ounce . . . I don’t know where I was with that one! The Wizard of Oz, not time for that right now, but do some digging. Web of Debt, a book by Ellen Hodgson Brown, explains it very well.

David’s written about this, it’s just fascinating. Holy Williams Jennings Bryan, Batman! The old Latin phrase comes to mind, talking about these ETFs and banks and central banks and that stuff, Cui Bono. “Who benefits?” in Latin. So, is this Goldman Sachs or is this one of the big guys behind the curtain (as in The Wizard of Oz) playing these ETFs or what’s going on?

Mr. Morgan:  It’s the banks. From my perspective, if you look at the Barclay’s Silver Trust, it’s in London. When Buffett bought 129.7 million ounces of fine silver off the COMEX, once he received the silver it ended up in London.

Then Buffett sells his silver and then the silver ETF arises in London, so now Barclay’s bank has some control of a great quantity of silver. Just look at the two best studies on the silver market, depending on which one you choose. I’m going to choose the CPM Group (even though I’m very close to the Silver Institute). In any event, you’re looking at maybe 500-600 million ounces of fine silver in 1,000-ounce bar form. So, the iShares has almost 300 million, which means they have three-fifths, or 60 percent, of the world’s silver supply sitting in their bank more or less. Which is a pretty healthy amount, and then if you subtract the COMEX out of that, they’ve got most of it. In fact, they do have most of it, not counting COMEX, obviously, but the point is that the banks now—or a bank, Barclay’s—has silver in their bank again, which is something that they haven’t had up until the creation of the ETF.

Mr. Jeffries:  Tell me something about the Silver Summit in Spokane.

Mr. Morgan: I did a Webinar with Hugo Salinas Price in Mexico and he actually asked that I would be the interviewer, which I consider to be an honor. I met him in person many years ago.

Most people don’t know that Hugo Salinas Price has started a foundation (I don’t know if it’s technically a foundation, but a group) that is looking into using silver side-by-side with the Mexican peso, and this story has been out there for a very long time. It recently got shot down by, guess who, the central banks in Mexico. But the idea to put money into circulation just in one nation-state alone has huge significance, and as Hugo himself said (I’m paraphrasing), even if it doesn’t happen the idea of it happening has a lot of power, because people will realize honest money works!

In the United States, some people are two paychecks or three paychecks away from bankruptcy, thus gold is the last thing on their mind as far as what they can afford. But they certainly could afford some silver, so I think you’re going to see silver really, really take off once we get near the end of this great credit debacle that we’re now experiencing. Again, though, I want to caution everybody: I don’t see that happening in 2009. I’m looking for the final wrap-up in this thing to happen somewhere around the 2012 timeframe.

Mr. Jeffries:  Just an amazing time we live in. By the way, I know David’s a very busy guy but he’s kind enough to say he will answer questions. If you’ve got a reasonable question send it along to info@howestreet.com, select David Morgan, and we’ll send it along to David.

If he has the time he’ll respond to it on his weekly podcast on HoweStreet.com. And if you’re wondering about the Silver Summit in Idaho, just Google it; you’ll see David is joined by a lot of top people, including the eminent Hugo Salinas Price.

Comments made on goldradio.fm are an expression of opinion only and should not be construed in any matter whatsoever as recommendations to buy or sell any financial instrument at any time. Available online at www.goldradio.fm, goldradio.fm is a production of Howe Street Media, Inc.

It is an honor to be.

Sincerely,

David Morgan

Mr. Morgan has followed the silver market for more than thirty years. He wrote the book, Get the Skinny on Silver Investing. Much of his Web site, Silver-Investor.com, is devoted to education about the precious metals, it is both a free site and does have a members only section. To receive full access to The Morgan Report click the hyperlink.

Disclaimer: The opinions expressed above are not intended to be taken as investment advice. It is to be taken as opinion only and I encourage you to complete your own due diligence when making an investment decision.

David Morgan Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in