David Morgan: Silver's Rubicon Moment? US$50 in Sight, but Watch for Shakeout
Summary
Silver Market Dynamics: David Morgan discusses the recent movements in silver prices, noting that silver is approaching the critical $50 level, driven by both silver-specific factors and its historical lag behind gold.
Gold-Silver Ratio: The gold-silver ratio remains historically high, and Morgan suggests that a decrease to 70 could indicate a more favorable environment for silver, potentially pushing its price above $50.
Market Shakeout: Morgan anticipates a significant market shakeout, possibly in October, which could affect both precious metals and broader markets, advising caution and reevaluation of portfolios.
Institutional Interest: There is increasing institutional interest in silver from countries like China and India, as well as from entities like the Saudis, indicating a strategic shift towards silver for both industrial and investment purposes.
Investment Strategy: Morgan emphasizes a measured approach to precious metals investment, recommending a 10% allocation in gold and silver to hedge against potential financial system disruptions.
Platinum Outlook: Morgan is bullish on platinum, noting its rarity and structural deficit, and suggests it may be undervalued compared to gold, despite recent price movements.
Financial System Concerns: Gold and silver are seen as indicators of financial instability, with Morgan warning of potential shifts towards digital currencies and increased financial oversight.
Documentary Launch: Morgan announces the upcoming release of his documentary "Silver Sunrise," aimed at encouraging viewers to rethink the role of money and its impact on stress and control in their lives.
Transcript
[Music] I'm Charlotte Mloud with investingnews.com and here today with me is David Morgan, publisher of the Morgan Report. Thank you so much for being here. Great to have you. Charlott, it's always fun. Thank you. Really good to be speaking with you. I feel like I'm saying this to a lot of people right now, but it seems like the perfect time to have you on because there's so much going on in precious metals. And where I thought we could begin is with silver. So, we've had silver on the move in recent weeks, approaching that $50 level. And what I wanted to ask you is how much of that increase you think is related to silver specific factors and how much might be related to maybe playing some catchup with gold? Well, I think it's both. I mean, in these major moves, you'll see uh you know, they they actually go back and forth. In other words, there are times where silver leads, but when you see the big breakouts, it's gold and then silver. And if we go back to the beginning of this bull market, it happened in year 2000 for gold. I forget what month. I haven't looked it up, but it was in the year 2000. Silver actually did not break out until it got above the 555 level, which was September of 2003. So, let's just say that gold broke out in September 2000. I think it was early in the year, but so September 2000. So, three years later, um, silver actually breaks out. That's a pretty big lag. And then once silver broke out for that 11-year bull market that you and I both enjoyed, excuse me, and we both enjoyed that. You know, basically gold was year-over-year higher every year for 11 years. Silver outperformed gold in some of those years. There were years it was off. Um, but it was a huge bull market for everybody and then it got real frothy near the end. It started to go parabolic and uh, as you know, I called the top. It's interesting. I have to digress. It was a podcast friend of mine, two of them, and he was talking about know, you know, how hard it is to call top and it is. I'll call it luck. But, uh, he didn't mention me. He usually does. But anyway, I haven't got my feelings hurt too much. The point is we have a lot of things to go forward. So the second part of your question is like, you know, is it different this time? Yes and no. Yes, it's different because the breakdown throughout the financial system is occurring worldwide. More and more people are recognizing it and we're seeing sector rotation, which means the big money is moving in the gold. It has been for years. As I've said to you and many others, the run to gold began when the central bank started to increase their uh allocations to gold. Silver's caught it. It's starting to do what it did in September 20 of 2003. It's made a breakout in this what I think last leg up. and the slack slake up should be the most effective in capital appreciation and duration wise probably won't last that long relative to the totality of the bull market. So if you started from 2000 till now it's 24 years long um if you started from whatever the bottom which I don't remember the the month and year it was still been many years since we hit the you know 1,50 whatever it was for gold now up at almost 4,000. So I think I over answered that Charlotte, but I am still bullish, but um all bull markets function is to shake off as many participants as it can and we haven't seen one of those big shakeoffs yet. I do expect we could have one in October. I think that was a good starting point for us and it opens up a lot of directions that I was hoping to go in and one of them was if you could help us situate where we are in the cycle when it comes to silver because I do hear quite often that silver lags behind gold then it outperforms and if you see silver starting to outperform maybe that means you're getting to the end of the precious metals bull market but it doesn't really feel like we're at the end right now so anything you would add on that note Yeah. Well, first of all, you nailed it. One of the best clues to say that you're at a top is not only a parabolic move, but silver starting to outperform. It really isn't. And we know that from the gold silver ratio. A lot of people, you know, make light of it, but it's a useful tool if you know what to use it for. Excuse me. And what you use it for is to see if silver is outpacing gold or not. We're still in the 80s for the gold silver ratio, which is historically high. And until we get to 70, I'm not going to be particularly happy. And often today's gold price is 71 ratio uh would be like $55 gold, excuse me, $55 silver. And that would be um over that 50 mark, which we're all hesitant about. And I'm writing about that in this month's newsletter. People see the 50 mark differently. All the techni technical types talk about, you know, a double cup cup and handle or a cup and handle that's, you know, 50 years in the making. It's very significant number psychologically. You know, silver's never gotten over 50 and really stayed there. And it hasn't in 50 years. So I think it's it could be a R crossing the Rubicon moment which means once it's accomplished and I believe it will be we've established something that hasn't occurred for 50 years in a precious metal known as silver and that will have I think some psychological effects to the silver community and for the algorithms it will also have an effect because there'll be blue sky in other words everyone that's ever held silver nominally Not only is that a profit in inflation adjusted terms? Far from it. For many people that bought it, you know, even in the 30s or whatever, inflation adjusted, they really haven't made any real significant gains. So, I'm really I'm not anxious for it to happen. And the last thing is in the previous moves into the 40s, silver really didn't stay there for very long. And now we are seeing like a monthly close in the 40s. And I'm actually happy to see us trade between let's say we have a let's say we just consolidate here between make up a couple numbers 47 and 44 and we stay there till the end of the year. A lot of people say oh see silver can't go any higher. I would say no we're building another base to go higher with more authority than if we just bounced up there in the next couple of weeks. What scares me being a you know futures trader in my past is that you get a move and it just keeps going up and up and then you don't have any kind of a base or any kind of support. So far silver's making enough support as is as well as gold that these are strong markets that continue. And last thing is you know somewhere there'll be a shakeoff. I believe it will be short-lived but significant enough to scare out new people or weak weak hands or people that are unsure of the commitment to you know the silver silver and gold markets and that's did you mention that's something that could potentially happen this month in October I think so I wrote about uh and I don't usually take other analysts into I do take other analysts into account but I always try to be my work and you know it's served me well because you can be influenced by others and and you should be I mean I've learned from many many people in the resource sector over decades but I still try to remain independent thinking having said all that Charles Denner who I think is one of the best timing wise he's looking for something in October I wrote about that a few months back to my premium members and I agree uh that October is seasonalitywise one of the more risky months in the stock market and the way things are going with this government shutdown, the wars aren't getting better. It looks like, you know, Trump switched his mind on Ukraine and on and on it goes with all the stresses we have as human beings on a planet that just wants peace. We are seeing all those things occur and the market is overvalued by any metric you want to use and has been that way for a very long time. margins are up to about a trillion dollars and these are mostly less sophisticated investor. The big money boys have bailed out of the market. Warren Buffett Pet example some of the Amazon characters and a lot like that are out. So if the big money's exiting then who gets left holding the bag if there is a correction and I'll put my neck out and I'll blame Charles N. won't Charles but but I will state yeah I've told everybody that's not sure what they want to do with their portfolio to stand on the sidelines for this month or all of October and let's re-evaluate. Now, if something happens big in October, you know, it's my duty to my members to let them know, okay, this is it. You know, we hit this and blah blah blah blah and make a commentary, but I won't be do a hypothetical any further. It's caution I think that's is is needed at this time across the board, metals, but particularly the stock market and uh even the debt markets. I mean this quantitative tightening is not really doing what the government would like it to do and a lot of people are not doing well because of the insidious inflation that's much greater than the government says. Yeah, that's that's certainly true. And looking a little bit more closely at the idea of silver over 50, is there anything further you'd say about the the psychological impact there? cuz that's something I find very interesting. You mentioned of course it's a level that we've haven't seen often and it's only been brief when we've gotten there in the past. There's a lot of people who are invested in this market heavily and and they've got kind of that I guess psychological attachment there to it as well. So any further thoughts? Yeah, there are it'll be like a bell curve. You know, we're all familiar with the bell curve and what we call the tail ends which are extremely unlikely. So you'll see both the tails and you'll see the middle as well. I just stay in the the golden mean as Aristotle called it. But you'll see people say now we reach 50 you know we're going to a thousand or we're going to 200 or you know you'll see that extreme the tail end of the bell curve and then you'll see people like it's only a matter of time. It's It's only been 2 weeks and gold's going to I'm excuse me, silver is going to crash down below 50 because it can't maintain that high level. It never has and it never will. This is an anomaly. So you see those two tail ends of the curve. So at 50, it's anomaly. It's coming right down and those is going to the moon. So where is it in between? And that's you know kind of my job to try to help as many people as I can that um you know what is a likely scenario what is the top price and no one can pick that ahead of time but I do think with that the psychology will be favorable to silver so what right now's taking place is you know the analogy of uh Lucy and Charlie and the football you know he cups kick football and she pulls it away from him and she does it again and again and And and silver investors have seen that so many times that once silver got above 35 38 they said the football's coming away I'm getting out selling at 40. Oh 44 I'm happy to take that 47 even better. So a lot of people are actually selling back in the silver market and in my view they should hold on but you know they can do whatever they feels best. Some are just selling partial because they need the cash or whatever but once we get to that new level what's the middle between it can't get above 50 and it's going to the moon. Well it's going halfway. So there'll be a lot less resistance. you see algorithms come in and start trading silver and you probably see institutions come in because they know that there's um it's a small market and they can move the market with a buy order if it's significant enough and just think that someone else will come in with a as large or larger buy order and they can like trade out of it. In other words, buy it at 55 and sell at 62 and watch it go to 70 or whatever. So, it's going to be tough. Uh, I hope it doesn't get into that kind of a market, but I think it's more likely that it will than not because so much of the trading in the general equity market is done by algorithms, computer trading, computers against each other, getting, you know, millisecond advance, being able to see a small spread that we can't see with the microscope, play that spread, you know, millions of times and come out with a big profit. So, I really don't like the way things have gone technology-wise on the trading aspect of things, but I have no control over that. So, all I can do, Charlotte, is, you know, what I do best and is try to take a calm, reasoned approach to what is reasonable and let my expectations be non-existent. Don't expect one way or the other, but just watch the market. Let me be feed the best information. Yeah. Yeah. That measured approach. And you know, you're mentioning the possibility of institutions, large buyers starting to come into silver. Who do you see buying right now? Who's picking up silver at the moment? Cuz I remember back in March when we talked, I was asking you, you know, are we going to see another silver squeeze? And you'd mentioned that the retail crowd wasn't in the market at that time and you'd need that if if that was going to happen. So, who who is buying right now? Well, countrywise it's China and India and you know specifically I think it's uh looking at it as maybe strategic uh what we need for you know building out high more high-tech facilities and more solar panels and more more things along that line and I think India is oriented more toward the investment side with you know having these ETFs that they have in India now and the population being geared toward gold and silver. And then we've got, you know, the Saudis have bought almost a million shares of the SLV, so they've got a big enough stake that they could actually ask for delivery of silver. And I think that's catching on. Of course, Russia bought silver and platinum not all that long ago. Some people know that. Some people may have forgotten it. So I think you're seeing silver start to come into the institutional side for both investment and for industrial purposes. And that's what I've always thought was the bonus for owning silver is we could not would but could get into a situation where Tesla needs it for pushing things out of the factory and XYZ pension fund needs it to hedge their position. They know silver's got, you know, blue sky. It's at 55 and it's only going higher. So once you if and I think when you have those two factions moving into silver for different reasons, the public will come back into the market. Uh it's just one of those, you know, FOMO fear of missing out and oh my goodness, I thought silver never get above 50, but so and so says it's going to a th00and so therefore buying at 70 is great. and then it goes to, you know, 85 and that person thinks, "Wow, I'm so glad I got in at 70. Now it's at 85." But those kind of moves, you know, depending how quickly they happen, can be shortlived. Again, I don't think we're going to see that. I think we've got a year or two ahead of us, and some people think 10 years. Fundamentally, I would say we've probably got 10 years based upon the dynamics of the silver market and these continuous shortfalls we've seen for four years or so. The problem with that is in my thinking, not see anyone's right or wrong, is I see a a complete shift in the structure of the financial system before the a 10-year time frame where we're put into a system of maybe digital currencies with maybe even a cashless society. uh maybe even looking at programmable money, which we have, and looking at probably more um oversight by the authority figures on our daily lives. That's that's one of my grave concerns, as you know, having spoken with me several times. So, yeah, fundamentally 10 years, okay, I'll give you that. But I don't think it can take that linear projection that we, you know, we're going to go. We we have a big anomaly coming up in the financial system. It's apparent to almost everyone at this point in time and I don't think it can go uh muddling along as we have been for so many years kicking the can down the road. I think we hit the end of the road and we're in for a shift. Yeah. Well, I think it becomes very difficult to make predictions about, okay, where is gold going to go? Where is silver going to go if you have something that huge coming down the line? So, any anything further you would add there? because it it does seem like it becomes hard to see what's going to be coming. Yeah, I just got an um one of our members asked me, you know, they're allowed to ask me two questions a month and many of them do and it's fine. I enjoy I enjoy what I do. So, he asked me about um uh what was the question? Uh congratulations on being proven right. It was a long hard five, but finally you are vindicated for all you've done for years of hard work. Uh you're north star of a long journey, always thoughtful, informative, blah blah blah blah keeping in the kind words you sent me. His question was I'm one of them by the way. My question would be um how do you know what evidence do you see for sector rotation and an indication and stability of price appreciation trend and when you know for every buyer there's a seller but I'm bullish give me some advice on you know determining like the high and what's going to take place for flows. So when money moves between sectors as it is that has a lasting impact. So you want to look at the ETF flows like the GDX, GDXJ, SIL and SJ. At the same time, more important than almost anything is trading volume at the stock level. When mid-tier and smaller producers suddenly trade three, four, five times their normal daily volume and prices are rising, that isn't random. That's retail money coming back in the market and fund buying and probably institutions. One more layer of confirmation is relative perform performance. When the mining sector starts to outperform the S&P 500, it has the NASDAQ, which it has. It's a telltale sign that the generalist money, not just the hard money crown, is beginning to rotate in. And it is. It's also essential to understand the sequence of the rotation. Early on, you'll often see juniors pop first because they're thinly traded, sensitive to any buying pressure whatsoever. Next, the mid-tier producers will catch the attention of institutions as they scale in. And finally, the senior producers and royalty companies move often pulling in broader investment community like institutions. As far as volume itself, yes, even every buyer has a seller. The distinction is what's in change for the transaction. Rising prices on surging volume tell you buyers are hitting the ask. That's urgent. They're bullish. they're increasing prices on light or declining volume suggest a thin or short-lived market. So, as long as we've got enough uh participation that keeps increasing and it is. So, in short, if you want to track the health and stability of the uptrend, keep your eyes on three things. ETF flows, broad volume across the miners, and relative strength versus the general market. So, wanted to get that in there. Charlotte, you know, I try to be objective on this stuff and not get too giddy. It was nice what that guy wrote me. I didn't mean to read it all. I forgot we wrote so much before the question. I think that's really helpful. So these are these are some signs we can look for when we're wondering are we getting to the top and I remember you've told the story before of silver in 2011 getting to these high levels and how you could see then or it's time to get out and you're telling people this. So these are signs that you also saw back then when we were in that silver situation. Yeah, it wasn't mostly sentiment. I mean, I did it for a number of reasons. One, being a futures trader, I know what parabolic moves look like and I know you want to sell them the strength. You don't need that last tick, that last penny. That's an amateur's idea. And then I also saw the volume of new subscribers and that was like the last data point I needed. I mean, when I was normally getting, you know, two a week or whatever it was, I started getting two or three a day. I said, "Oh boy, this is it." And I made my call and a lot of the crowd, not a lot, but some of the crowd said, "David, you've lost your reputation. You're going down the history books is, you know, the anti-s guru. You don't know what you're doing. You're going to have to retract it. Retract it now. Blah blah blah blah." And of course, it turned out to be correct. And I'm not saying I'm going to get the next one. I'm not saying that at all. What I am saying is that when you get in a very heated bull market, um there's a propensity for people to think it could go on forever and no market goes to the moon. So, but I still think we're so undervalued relative to gold, relative to the stock market and we have these dynamics and mill repeating myself slightly, but they need to be emphasized. If we get institutions and industrial users vying for the same stockpile of silver and the public comes back in, we have some price appreciation ahead of us. Yeah. Yeah. I do think it bears repeating as well. And I do want to touch on gold at least a little bit. We've we've spoken about it a little bit here already, but I've been thinking. So, I'm sure I've heard this from you. I've heard it from many people about gold in terms of the price. When you get to these high levels, maybe you should be careful what you wish for because something is probably going wrong in the world if you see record high gold prices and silver on the move as well. So, you've you've spoken about this already a little bit, but what are gold and silver telling us right now about what's happening? Yeah, they're telling us I use this and I think I picked it up from Jim Dyn. I'll give him credit. I think that's where I read the first time. But gold is a barometer, not a thermometer. Everyone's like the daily price and you know, they're very fascinated with it. But when gold's moving like this, a barometer tells you there's a big storm ahead. And that's what gold and silver to some degree are telling us that the financial system is in trouble. And and we gold bugs have known that for a long time. People that study the Austrian school have known that for a long time. It's just the barometer doesn't tell you what day the storm is coming, but it tells you the storm is coming. So that's what it's saying. And as I said earlier, you know, what I have lectured on and studied and written about happens to be the new monetary system. And I did that at the New Orleans gold show last Thanksgiving, November of last year. And basically the whole lecture was based upon the uh the bankers bank the BIS bank of international settlements and how they structured all banks reporting through them to them on how the new system will work. And so to me being very freedom minded more above and beyond anything is that uh it doesn't bode well uh for the average person as far as the amount of control they want over us in the financial system. And so I think that's the biggest picture. So is gold telling us that's in our future? That's what they're planning. Be prepared. There's one way, there's a few ways out or at least a way to mitigate it. And that's with honest money or honest money for honest people outside the system. And really, when you're talking money, there's only two that serve as money that are outside of the system, and that's gold and silver. I mean, Bitcoin or any of the cryptos, although you might think they're out of the system, have on a cold wallet and all that, they have to go through an exchange. And what are you going to get for them? US dollars. I'm in gold cuz I don't want US dollars. Really, really good information and I had a chance to see that presentation last year. It was very valuable. I think that people in our audience and maybe people who are new to the sector are looking at this right now and they they see these concerns. They're becoming more aware of what's happening if they don't know already and they wonder, okay, so how do I set myself up? How much gold and silver do I need to have? What else do I need to have? And I know every person is different, but are there any words that you could share to direct people a little bit? Yeah, thank you for that. I think number one is, you know, more self- responsibility. Realize that a lot of what happens to you in life doesn't happen to you in life. It happens as a result of your choices. You know, I mean, I've got two girls and they make good choices most of the time, but not always. And when they made bad choices, they usually had to pay a price. So, that's one, I think, taking self- responsibility. And what that means is live within your means. if you can. And that's what's so upsetting to me is that there are people out there and there's a lot of single women. There's guys too, families, uh, you know, couples that have been together for years, but they're, you know, two jobs and they can't make ends meet. That's sad, but that's reality. So, if you can't live within your means, you can't. I get it. Uh, if you can, then you want to really save in some precious metals or, you know, get extra whatever food even. But I think the point I want to make is to stay calm and realize that, you know, Matt's been through these things before. We come out of them. It's just that uh if you catch the gold bug, don't bite real hard. You don't need a lot to weather a storm. You know, I mean, you don't like when the barometer says, "Hey, storm conditions ahead. I'm going back in the harbor." Go back in the harbor and go about your life. maybe make a few changes, but you don't have to radically sell all your stocks and put it all in gold, for example. I mean, that would just not be a prudent move. You don't want to be scared in the position. You want to do it from a let's say a centered position where you're calm and okay, so what do I need? Well, you know, Jim Rickards, myself, many have said somewhere around the 10% level is probably enough for almost any situation. Well, that's not a lot. You know, you got 90% wherever it's at. real estate, stocks, wherever. And so don't overdo it. And now with the market being so heated, how do you do it? And I think going back to the 10 rules of silver investing is take a longer term approach and buy in, you know, over several months. So dollar cost average, it's called. And that really helps take a lot of emotion out of it. Okay, I want a 10% that's X. I'm going to get there in increments of 110th X. are going to buy 10% of that every month for the next 10 months. And if you're still in a bull market, even with the ups and downs and the shakeouts, you will come out with a good average price and you'll be able to be protected and sleep well at night. I mean, I want to give a presentation that keeps people calmer and more relaxed rather than the stress again that we're all under with our political classes seemingly my opinion, not yours. I know it's your show, but you let us speak our free mind, but the political class is not doing their jobs and actually being at the detriment in my opinion to a lot of us. Yeah, I I appreciate that cuz there is a lot of stress in life right now and it's it's good to bring it back to breaking down those steps and telling people, okay, you can do this and and this is how you can make it happen. So, definitely happy to go into that with you. And before I let you go, I want to bring up platinum as well. Another of the precious metals, the price of platinum, I know you've been sending some tweets out about platinum. It's been on the move as well and it kind of reminds me of silver with the ongoing deficit situation and now the price on the move. So I imagine you're you're bullish on platinum but curious to get your thoughts on the outlook there. Yeah, we're writing about that in the report. It's going to be published um in about three days. And we uh we were early on platinum and I made a more or less formal recommendation the April newsletter when it was still around a thousand and uh it's done well. I suggested that report gold was right near 3500. I said I think gold's going sideways all summer. I think I told you this last time. I do more than one interview as you know anyway. And I was correct. And I said, if you're wanting to buy more, adding your position, look at platinum and silver. I wouldn't buy gold at this level. And uh that proved to be, you know, pretty good. I think uh one of my uh colleagues or associates, whatever you want to call him, Bob Morardi, 321 gold, he's been uh big on platinum. We were we were early. We still like it, but it's moved more than the other metals this year. And I think it's still undervalued. But like silver and gold, you want to be a little bit cautious here. Especially like I said earlier, we might want to wait for the whole month of November and see what the general market does. Especially with the setup, as I said, you know, government shutdowns and war problems, etc. So, uh I love it. It's 15 times rarer than gold. It's a very small market. 70% comes from South Africa. If there's any disruption there, it would probably cause the metal to go higher. It's been in a structural deficit. Uh, and they're mining it uh at about 1250. So, they're just making a profit now, but I would say barely, but not significantly. Look at gold. Most gold miners, the tops are around 2,000 and they're almost double that. So, the margins almost 100% whereas platinum, you know, 200 bucks on $1,500 price. It's a margin, but it's not anything close to the margin on gold. So, I still think I favor platinum over gold at this point in time, but it's a small market, very sophisticated market. You pay a price going in, the spreads are big, so you pay a big premium on the buy side and usually get shorted on the sell side where you have to sell at a slight discount. I know that. I've accepted that. I understand that. But some people don't and they get a little upset and that's you know that's part of the game or part of the part of the way it is. It's just a very very thin market and there's not a lot of demand for platinum on the on the investment side but relative to gold is still cheap. And the last comment the Chinese are buying more silver jewelry that have a long time. The Japanese are buying more platinum jewelry that have a long time. And uh as these markets continue higher, new people will be coming in and thinking through well where which one do I buy? And I think that will push the other white metals higher. Well, definitely a lot of points for everybody to be thinking about. And before I let you go, I wanted to ask if you had any final thoughts you wanted to share maybe about where to find you. I know last time we also spoke about the progress on the Silver Sunrise documentary. So, I don't know if you have a progress update there as well. I do. It's done. I'm going to launch it on the 22nd of October. Probably launch it to my members first as a courtesy for people that have, you know, supported me for all these all this time. H, but it'll be free. And once I do probably a membersonly launch, I'll go ahead and launch it to the public and it'll be free. Uh, and I got a lot of feedback, you know, and I'm sure there's things that could be better, but, you know, you can just tweak it so many times. It's never going to be perfect and someone's going to see it as great. Someone's going to see it as a waste of time and, you know, be the tail end of the curve. talked about before, but the vast majority it will get what I want and that's to make them think think about money, how it controls and stresses them out, how they don't have to buy into that narrative, how we ourselves are really the most important thing, our humanity, our interaction with each other, all that we've built. the elite really, you know, I mean, bank, the banking elite particularly don't really create much of anything except paper money or a digital keyboard. It's the entrepreneurial spirit. It's the spirit of people that really bring things to the four. And I think we just have to kind of revivify that for everyone that uh no matter who you are, where you are on the scale, it's not a scale that matters. It's how you approach your life and your fellow people, your community, which really has meaning in life and trying to alleviate the fear and stress of money for people. I can't do it with a film, but I can plant that seed or that idea with a film. Yeah. Yeah. You can get that message across. Well, October 22nd, we'll look forward to that. I'll leave a link in the video description so people can bookmark it and hope to have you back once it's out to discuss. Great. Thank you, Charlotte. Of course. Well, once again, I'm Charlotte Mloud with investingnews.com and this is David Morgan with the Morgan Report. Thank you for watching. If you like this video, make sure you hit the like button and subscribe to our channel. We'd also love to hear your thoughts, so leave us a comment below. [Music]
David Morgan: Silver's Rubicon Moment? US$50 in Sight, but Watch for Shakeout
Summary
Transcript
[Music] I'm Charlotte Mloud with investingnews.com and here today with me is David Morgan, publisher of the Morgan Report. Thank you so much for being here. Great to have you. Charlott, it's always fun. Thank you. Really good to be speaking with you. I feel like I'm saying this to a lot of people right now, but it seems like the perfect time to have you on because there's so much going on in precious metals. And where I thought we could begin is with silver. So, we've had silver on the move in recent weeks, approaching that $50 level. And what I wanted to ask you is how much of that increase you think is related to silver specific factors and how much might be related to maybe playing some catchup with gold? Well, I think it's both. I mean, in these major moves, you'll see uh you know, they they actually go back and forth. In other words, there are times where silver leads, but when you see the big breakouts, it's gold and then silver. And if we go back to the beginning of this bull market, it happened in year 2000 for gold. I forget what month. I haven't looked it up, but it was in the year 2000. Silver actually did not break out until it got above the 555 level, which was September of 2003. So, let's just say that gold broke out in September 2000. I think it was early in the year, but so September 2000. So, three years later, um, silver actually breaks out. That's a pretty big lag. And then once silver broke out for that 11-year bull market that you and I both enjoyed, excuse me, and we both enjoyed that. You know, basically gold was year-over-year higher every year for 11 years. Silver outperformed gold in some of those years. There were years it was off. Um, but it was a huge bull market for everybody and then it got real frothy near the end. It started to go parabolic and uh, as you know, I called the top. It's interesting. I have to digress. It was a podcast friend of mine, two of them, and he was talking about know, you know, how hard it is to call top and it is. I'll call it luck. But, uh, he didn't mention me. He usually does. But anyway, I haven't got my feelings hurt too much. The point is we have a lot of things to go forward. So the second part of your question is like, you know, is it different this time? Yes and no. Yes, it's different because the breakdown throughout the financial system is occurring worldwide. More and more people are recognizing it and we're seeing sector rotation, which means the big money is moving in the gold. It has been for years. As I've said to you and many others, the run to gold began when the central bank started to increase their uh allocations to gold. Silver's caught it. It's starting to do what it did in September 20 of 2003. It's made a breakout in this what I think last leg up. and the slack slake up should be the most effective in capital appreciation and duration wise probably won't last that long relative to the totality of the bull market. So if you started from 2000 till now it's 24 years long um if you started from whatever the bottom which I don't remember the the month and year it was still been many years since we hit the you know 1,50 whatever it was for gold now up at almost 4,000. So I think I over answered that Charlotte, but I am still bullish, but um all bull markets function is to shake off as many participants as it can and we haven't seen one of those big shakeoffs yet. I do expect we could have one in October. I think that was a good starting point for us and it opens up a lot of directions that I was hoping to go in and one of them was if you could help us situate where we are in the cycle when it comes to silver because I do hear quite often that silver lags behind gold then it outperforms and if you see silver starting to outperform maybe that means you're getting to the end of the precious metals bull market but it doesn't really feel like we're at the end right now so anything you would add on that note Yeah. Well, first of all, you nailed it. One of the best clues to say that you're at a top is not only a parabolic move, but silver starting to outperform. It really isn't. And we know that from the gold silver ratio. A lot of people, you know, make light of it, but it's a useful tool if you know what to use it for. Excuse me. And what you use it for is to see if silver is outpacing gold or not. We're still in the 80s for the gold silver ratio, which is historically high. And until we get to 70, I'm not going to be particularly happy. And often today's gold price is 71 ratio uh would be like $55 gold, excuse me, $55 silver. And that would be um over that 50 mark, which we're all hesitant about. And I'm writing about that in this month's newsletter. People see the 50 mark differently. All the techni technical types talk about, you know, a double cup cup and handle or a cup and handle that's, you know, 50 years in the making. It's very significant number psychologically. You know, silver's never gotten over 50 and really stayed there. And it hasn't in 50 years. So I think it's it could be a R crossing the Rubicon moment which means once it's accomplished and I believe it will be we've established something that hasn't occurred for 50 years in a precious metal known as silver and that will have I think some psychological effects to the silver community and for the algorithms it will also have an effect because there'll be blue sky in other words everyone that's ever held silver nominally Not only is that a profit in inflation adjusted terms? Far from it. For many people that bought it, you know, even in the 30s or whatever, inflation adjusted, they really haven't made any real significant gains. So, I'm really I'm not anxious for it to happen. And the last thing is in the previous moves into the 40s, silver really didn't stay there for very long. And now we are seeing like a monthly close in the 40s. And I'm actually happy to see us trade between let's say we have a let's say we just consolidate here between make up a couple numbers 47 and 44 and we stay there till the end of the year. A lot of people say oh see silver can't go any higher. I would say no we're building another base to go higher with more authority than if we just bounced up there in the next couple of weeks. What scares me being a you know futures trader in my past is that you get a move and it just keeps going up and up and then you don't have any kind of a base or any kind of support. So far silver's making enough support as is as well as gold that these are strong markets that continue. And last thing is you know somewhere there'll be a shakeoff. I believe it will be short-lived but significant enough to scare out new people or weak weak hands or people that are unsure of the commitment to you know the silver silver and gold markets and that's did you mention that's something that could potentially happen this month in October I think so I wrote about uh and I don't usually take other analysts into I do take other analysts into account but I always try to be my work and you know it's served me well because you can be influenced by others and and you should be I mean I've learned from many many people in the resource sector over decades but I still try to remain independent thinking having said all that Charles Denner who I think is one of the best timing wise he's looking for something in October I wrote about that a few months back to my premium members and I agree uh that October is seasonalitywise one of the more risky months in the stock market and the way things are going with this government shutdown, the wars aren't getting better. It looks like, you know, Trump switched his mind on Ukraine and on and on it goes with all the stresses we have as human beings on a planet that just wants peace. We are seeing all those things occur and the market is overvalued by any metric you want to use and has been that way for a very long time. margins are up to about a trillion dollars and these are mostly less sophisticated investor. The big money boys have bailed out of the market. Warren Buffett Pet example some of the Amazon characters and a lot like that are out. So if the big money's exiting then who gets left holding the bag if there is a correction and I'll put my neck out and I'll blame Charles N. won't Charles but but I will state yeah I've told everybody that's not sure what they want to do with their portfolio to stand on the sidelines for this month or all of October and let's re-evaluate. Now, if something happens big in October, you know, it's my duty to my members to let them know, okay, this is it. You know, we hit this and blah blah blah blah and make a commentary, but I won't be do a hypothetical any further. It's caution I think that's is is needed at this time across the board, metals, but particularly the stock market and uh even the debt markets. I mean this quantitative tightening is not really doing what the government would like it to do and a lot of people are not doing well because of the insidious inflation that's much greater than the government says. Yeah, that's that's certainly true. And looking a little bit more closely at the idea of silver over 50, is there anything further you'd say about the the psychological impact there? cuz that's something I find very interesting. You mentioned of course it's a level that we've haven't seen often and it's only been brief when we've gotten there in the past. There's a lot of people who are invested in this market heavily and and they've got kind of that I guess psychological attachment there to it as well. So any further thoughts? Yeah, there are it'll be like a bell curve. You know, we're all familiar with the bell curve and what we call the tail ends which are extremely unlikely. So you'll see both the tails and you'll see the middle as well. I just stay in the the golden mean as Aristotle called it. But you'll see people say now we reach 50 you know we're going to a thousand or we're going to 200 or you know you'll see that extreme the tail end of the bell curve and then you'll see people like it's only a matter of time. It's It's only been 2 weeks and gold's going to I'm excuse me, silver is going to crash down below 50 because it can't maintain that high level. It never has and it never will. This is an anomaly. So you see those two tail ends of the curve. So at 50, it's anomaly. It's coming right down and those is going to the moon. So where is it in between? And that's you know kind of my job to try to help as many people as I can that um you know what is a likely scenario what is the top price and no one can pick that ahead of time but I do think with that the psychology will be favorable to silver so what right now's taking place is you know the analogy of uh Lucy and Charlie and the football you know he cups kick football and she pulls it away from him and she does it again and again and And and silver investors have seen that so many times that once silver got above 35 38 they said the football's coming away I'm getting out selling at 40. Oh 44 I'm happy to take that 47 even better. So a lot of people are actually selling back in the silver market and in my view they should hold on but you know they can do whatever they feels best. Some are just selling partial because they need the cash or whatever but once we get to that new level what's the middle between it can't get above 50 and it's going to the moon. Well it's going halfway. So there'll be a lot less resistance. you see algorithms come in and start trading silver and you probably see institutions come in because they know that there's um it's a small market and they can move the market with a buy order if it's significant enough and just think that someone else will come in with a as large or larger buy order and they can like trade out of it. In other words, buy it at 55 and sell at 62 and watch it go to 70 or whatever. So, it's going to be tough. Uh, I hope it doesn't get into that kind of a market, but I think it's more likely that it will than not because so much of the trading in the general equity market is done by algorithms, computer trading, computers against each other, getting, you know, millisecond advance, being able to see a small spread that we can't see with the microscope, play that spread, you know, millions of times and come out with a big profit. So, I really don't like the way things have gone technology-wise on the trading aspect of things, but I have no control over that. So, all I can do, Charlotte, is, you know, what I do best and is try to take a calm, reasoned approach to what is reasonable and let my expectations be non-existent. Don't expect one way or the other, but just watch the market. Let me be feed the best information. Yeah. Yeah. That measured approach. And you know, you're mentioning the possibility of institutions, large buyers starting to come into silver. Who do you see buying right now? Who's picking up silver at the moment? Cuz I remember back in March when we talked, I was asking you, you know, are we going to see another silver squeeze? And you'd mentioned that the retail crowd wasn't in the market at that time and you'd need that if if that was going to happen. So, who who is buying right now? Well, countrywise it's China and India and you know specifically I think it's uh looking at it as maybe strategic uh what we need for you know building out high more high-tech facilities and more solar panels and more more things along that line and I think India is oriented more toward the investment side with you know having these ETFs that they have in India now and the population being geared toward gold and silver. And then we've got, you know, the Saudis have bought almost a million shares of the SLV, so they've got a big enough stake that they could actually ask for delivery of silver. And I think that's catching on. Of course, Russia bought silver and platinum not all that long ago. Some people know that. Some people may have forgotten it. So I think you're seeing silver start to come into the institutional side for both investment and for industrial purposes. And that's what I've always thought was the bonus for owning silver is we could not would but could get into a situation where Tesla needs it for pushing things out of the factory and XYZ pension fund needs it to hedge their position. They know silver's got, you know, blue sky. It's at 55 and it's only going higher. So once you if and I think when you have those two factions moving into silver for different reasons, the public will come back into the market. Uh it's just one of those, you know, FOMO fear of missing out and oh my goodness, I thought silver never get above 50, but so and so says it's going to a th00and so therefore buying at 70 is great. and then it goes to, you know, 85 and that person thinks, "Wow, I'm so glad I got in at 70. Now it's at 85." But those kind of moves, you know, depending how quickly they happen, can be shortlived. Again, I don't think we're going to see that. I think we've got a year or two ahead of us, and some people think 10 years. Fundamentally, I would say we've probably got 10 years based upon the dynamics of the silver market and these continuous shortfalls we've seen for four years or so. The problem with that is in my thinking, not see anyone's right or wrong, is I see a a complete shift in the structure of the financial system before the a 10-year time frame where we're put into a system of maybe digital currencies with maybe even a cashless society. uh maybe even looking at programmable money, which we have, and looking at probably more um oversight by the authority figures on our daily lives. That's that's one of my grave concerns, as you know, having spoken with me several times. So, yeah, fundamentally 10 years, okay, I'll give you that. But I don't think it can take that linear projection that we, you know, we're going to go. We we have a big anomaly coming up in the financial system. It's apparent to almost everyone at this point in time and I don't think it can go uh muddling along as we have been for so many years kicking the can down the road. I think we hit the end of the road and we're in for a shift. Yeah. Well, I think it becomes very difficult to make predictions about, okay, where is gold going to go? Where is silver going to go if you have something that huge coming down the line? So, any anything further you would add there? because it it does seem like it becomes hard to see what's going to be coming. Yeah, I just got an um one of our members asked me, you know, they're allowed to ask me two questions a month and many of them do and it's fine. I enjoy I enjoy what I do. So, he asked me about um uh what was the question? Uh congratulations on being proven right. It was a long hard five, but finally you are vindicated for all you've done for years of hard work. Uh you're north star of a long journey, always thoughtful, informative, blah blah blah blah keeping in the kind words you sent me. His question was I'm one of them by the way. My question would be um how do you know what evidence do you see for sector rotation and an indication and stability of price appreciation trend and when you know for every buyer there's a seller but I'm bullish give me some advice on you know determining like the high and what's going to take place for flows. So when money moves between sectors as it is that has a lasting impact. So you want to look at the ETF flows like the GDX, GDXJ, SIL and SJ. At the same time, more important than almost anything is trading volume at the stock level. When mid-tier and smaller producers suddenly trade three, four, five times their normal daily volume and prices are rising, that isn't random. That's retail money coming back in the market and fund buying and probably institutions. One more layer of confirmation is relative perform performance. When the mining sector starts to outperform the S&P 500, it has the NASDAQ, which it has. It's a telltale sign that the generalist money, not just the hard money crown, is beginning to rotate in. And it is. It's also essential to understand the sequence of the rotation. Early on, you'll often see juniors pop first because they're thinly traded, sensitive to any buying pressure whatsoever. Next, the mid-tier producers will catch the attention of institutions as they scale in. And finally, the senior producers and royalty companies move often pulling in broader investment community like institutions. As far as volume itself, yes, even every buyer has a seller. The distinction is what's in change for the transaction. Rising prices on surging volume tell you buyers are hitting the ask. That's urgent. They're bullish. they're increasing prices on light or declining volume suggest a thin or short-lived market. So, as long as we've got enough uh participation that keeps increasing and it is. So, in short, if you want to track the health and stability of the uptrend, keep your eyes on three things. ETF flows, broad volume across the miners, and relative strength versus the general market. So, wanted to get that in there. Charlotte, you know, I try to be objective on this stuff and not get too giddy. It was nice what that guy wrote me. I didn't mean to read it all. I forgot we wrote so much before the question. I think that's really helpful. So these are these are some signs we can look for when we're wondering are we getting to the top and I remember you've told the story before of silver in 2011 getting to these high levels and how you could see then or it's time to get out and you're telling people this. So these are signs that you also saw back then when we were in that silver situation. Yeah, it wasn't mostly sentiment. I mean, I did it for a number of reasons. One, being a futures trader, I know what parabolic moves look like and I know you want to sell them the strength. You don't need that last tick, that last penny. That's an amateur's idea. And then I also saw the volume of new subscribers and that was like the last data point I needed. I mean, when I was normally getting, you know, two a week or whatever it was, I started getting two or three a day. I said, "Oh boy, this is it." And I made my call and a lot of the crowd, not a lot, but some of the crowd said, "David, you've lost your reputation. You're going down the history books is, you know, the anti-s guru. You don't know what you're doing. You're going to have to retract it. Retract it now. Blah blah blah blah." And of course, it turned out to be correct. And I'm not saying I'm going to get the next one. I'm not saying that at all. What I am saying is that when you get in a very heated bull market, um there's a propensity for people to think it could go on forever and no market goes to the moon. So, but I still think we're so undervalued relative to gold, relative to the stock market and we have these dynamics and mill repeating myself slightly, but they need to be emphasized. If we get institutions and industrial users vying for the same stockpile of silver and the public comes back in, we have some price appreciation ahead of us. Yeah. Yeah. I do think it bears repeating as well. And I do want to touch on gold at least a little bit. We've we've spoken about it a little bit here already, but I've been thinking. So, I'm sure I've heard this from you. I've heard it from many people about gold in terms of the price. When you get to these high levels, maybe you should be careful what you wish for because something is probably going wrong in the world if you see record high gold prices and silver on the move as well. So, you've you've spoken about this already a little bit, but what are gold and silver telling us right now about what's happening? Yeah, they're telling us I use this and I think I picked it up from Jim Dyn. I'll give him credit. I think that's where I read the first time. But gold is a barometer, not a thermometer. Everyone's like the daily price and you know, they're very fascinated with it. But when gold's moving like this, a barometer tells you there's a big storm ahead. And that's what gold and silver to some degree are telling us that the financial system is in trouble. And and we gold bugs have known that for a long time. People that study the Austrian school have known that for a long time. It's just the barometer doesn't tell you what day the storm is coming, but it tells you the storm is coming. So that's what it's saying. And as I said earlier, you know, what I have lectured on and studied and written about happens to be the new monetary system. And I did that at the New Orleans gold show last Thanksgiving, November of last year. And basically the whole lecture was based upon the uh the bankers bank the BIS bank of international settlements and how they structured all banks reporting through them to them on how the new system will work. And so to me being very freedom minded more above and beyond anything is that uh it doesn't bode well uh for the average person as far as the amount of control they want over us in the financial system. And so I think that's the biggest picture. So is gold telling us that's in our future? That's what they're planning. Be prepared. There's one way, there's a few ways out or at least a way to mitigate it. And that's with honest money or honest money for honest people outside the system. And really, when you're talking money, there's only two that serve as money that are outside of the system, and that's gold and silver. I mean, Bitcoin or any of the cryptos, although you might think they're out of the system, have on a cold wallet and all that, they have to go through an exchange. And what are you going to get for them? US dollars. I'm in gold cuz I don't want US dollars. Really, really good information and I had a chance to see that presentation last year. It was very valuable. I think that people in our audience and maybe people who are new to the sector are looking at this right now and they they see these concerns. They're becoming more aware of what's happening if they don't know already and they wonder, okay, so how do I set myself up? How much gold and silver do I need to have? What else do I need to have? And I know every person is different, but are there any words that you could share to direct people a little bit? Yeah, thank you for that. I think number one is, you know, more self- responsibility. Realize that a lot of what happens to you in life doesn't happen to you in life. It happens as a result of your choices. You know, I mean, I've got two girls and they make good choices most of the time, but not always. And when they made bad choices, they usually had to pay a price. So, that's one, I think, taking self- responsibility. And what that means is live within your means. if you can. And that's what's so upsetting to me is that there are people out there and there's a lot of single women. There's guys too, families, uh, you know, couples that have been together for years, but they're, you know, two jobs and they can't make ends meet. That's sad, but that's reality. So, if you can't live within your means, you can't. I get it. Uh, if you can, then you want to really save in some precious metals or, you know, get extra whatever food even. But I think the point I want to make is to stay calm and realize that, you know, Matt's been through these things before. We come out of them. It's just that uh if you catch the gold bug, don't bite real hard. You don't need a lot to weather a storm. You know, I mean, you don't like when the barometer says, "Hey, storm conditions ahead. I'm going back in the harbor." Go back in the harbor and go about your life. maybe make a few changes, but you don't have to radically sell all your stocks and put it all in gold, for example. I mean, that would just not be a prudent move. You don't want to be scared in the position. You want to do it from a let's say a centered position where you're calm and okay, so what do I need? Well, you know, Jim Rickards, myself, many have said somewhere around the 10% level is probably enough for almost any situation. Well, that's not a lot. You know, you got 90% wherever it's at. real estate, stocks, wherever. And so don't overdo it. And now with the market being so heated, how do you do it? And I think going back to the 10 rules of silver investing is take a longer term approach and buy in, you know, over several months. So dollar cost average, it's called. And that really helps take a lot of emotion out of it. Okay, I want a 10% that's X. I'm going to get there in increments of 110th X. are going to buy 10% of that every month for the next 10 months. And if you're still in a bull market, even with the ups and downs and the shakeouts, you will come out with a good average price and you'll be able to be protected and sleep well at night. I mean, I want to give a presentation that keeps people calmer and more relaxed rather than the stress again that we're all under with our political classes seemingly my opinion, not yours. I know it's your show, but you let us speak our free mind, but the political class is not doing their jobs and actually being at the detriment in my opinion to a lot of us. Yeah, I I appreciate that cuz there is a lot of stress in life right now and it's it's good to bring it back to breaking down those steps and telling people, okay, you can do this and and this is how you can make it happen. So, definitely happy to go into that with you. And before I let you go, I want to bring up platinum as well. Another of the precious metals, the price of platinum, I know you've been sending some tweets out about platinum. It's been on the move as well and it kind of reminds me of silver with the ongoing deficit situation and now the price on the move. So I imagine you're you're bullish on platinum but curious to get your thoughts on the outlook there. Yeah, we're writing about that in the report. It's going to be published um in about three days. And we uh we were early on platinum and I made a more or less formal recommendation the April newsletter when it was still around a thousand and uh it's done well. I suggested that report gold was right near 3500. I said I think gold's going sideways all summer. I think I told you this last time. I do more than one interview as you know anyway. And I was correct. And I said, if you're wanting to buy more, adding your position, look at platinum and silver. I wouldn't buy gold at this level. And uh that proved to be, you know, pretty good. I think uh one of my uh colleagues or associates, whatever you want to call him, Bob Morardi, 321 gold, he's been uh big on platinum. We were we were early. We still like it, but it's moved more than the other metals this year. And I think it's still undervalued. But like silver and gold, you want to be a little bit cautious here. Especially like I said earlier, we might want to wait for the whole month of November and see what the general market does. Especially with the setup, as I said, you know, government shutdowns and war problems, etc. So, uh I love it. It's 15 times rarer than gold. It's a very small market. 70% comes from South Africa. If there's any disruption there, it would probably cause the metal to go higher. It's been in a structural deficit. Uh, and they're mining it uh at about 1250. So, they're just making a profit now, but I would say barely, but not significantly. Look at gold. Most gold miners, the tops are around 2,000 and they're almost double that. So, the margins almost 100% whereas platinum, you know, 200 bucks on $1,500 price. It's a margin, but it's not anything close to the margin on gold. So, I still think I favor platinum over gold at this point in time, but it's a small market, very sophisticated market. You pay a price going in, the spreads are big, so you pay a big premium on the buy side and usually get shorted on the sell side where you have to sell at a slight discount. I know that. I've accepted that. I understand that. But some people don't and they get a little upset and that's you know that's part of the game or part of the part of the way it is. It's just a very very thin market and there's not a lot of demand for platinum on the on the investment side but relative to gold is still cheap. And the last comment the Chinese are buying more silver jewelry that have a long time. The Japanese are buying more platinum jewelry that have a long time. And uh as these markets continue higher, new people will be coming in and thinking through well where which one do I buy? And I think that will push the other white metals higher. Well, definitely a lot of points for everybody to be thinking about. And before I let you go, I wanted to ask if you had any final thoughts you wanted to share maybe about where to find you. I know last time we also spoke about the progress on the Silver Sunrise documentary. So, I don't know if you have a progress update there as well. I do. It's done. I'm going to launch it on the 22nd of October. Probably launch it to my members first as a courtesy for people that have, you know, supported me for all these all this time. H, but it'll be free. And once I do probably a membersonly launch, I'll go ahead and launch it to the public and it'll be free. Uh, and I got a lot of feedback, you know, and I'm sure there's things that could be better, but, you know, you can just tweak it so many times. It's never going to be perfect and someone's going to see it as great. Someone's going to see it as a waste of time and, you know, be the tail end of the curve. talked about before, but the vast majority it will get what I want and that's to make them think think about money, how it controls and stresses them out, how they don't have to buy into that narrative, how we ourselves are really the most important thing, our humanity, our interaction with each other, all that we've built. the elite really, you know, I mean, bank, the banking elite particularly don't really create much of anything except paper money or a digital keyboard. It's the entrepreneurial spirit. It's the spirit of people that really bring things to the four. And I think we just have to kind of revivify that for everyone that uh no matter who you are, where you are on the scale, it's not a scale that matters. It's how you approach your life and your fellow people, your community, which really has meaning in life and trying to alleviate the fear and stress of money for people. I can't do it with a film, but I can plant that seed or that idea with a film. Yeah. Yeah. You can get that message across. Well, October 22nd, we'll look forward to that. I'll leave a link in the video description so people can bookmark it and hope to have you back once it's out to discuss. Great. Thank you, Charlotte. Of course. Well, once again, I'm Charlotte Mloud with investingnews.com and this is David Morgan with the Morgan Report. Thank you for watching. If you like this video, make sure you hit the like button and subscribe to our channel. We'd also love to hear your thoughts, so leave us a comment below. [Music]