Mike Gleason: It is my privilege now to welcome back our good friend David Morgan of The Morgan Report. David, it’s always good to have you on and appreciate you joining us today. How are you, sir?
David Morgan: Mike, I’m doing all right and it’s good to be with you.
Mike Gleason: Well, David, I know we don’t have a whole lot of time today, but I’m really glad we’re able to speak to you this week because we’re finally seeing some real fireworks here in the metals lately. And I wanted to get your comments.
I should mention that we’re talking here on Thursday morning and we’ve got gold hovering around $1,500 and silver right at about $17. They both popped above those respective key levels yesterday, Wednesday. So first off, what do you make of this move, David? What’s driving it? And the bigger question, will it be sustained?
David Morgan: Well, what’s driving it is something that no one’s really, really talking about. This is my opinion. Of course, you’re asking for my opinion. A lot is the financial press, “Well, It’s all about this trade war with China and the trade war is getting worse. And there’s going to be more sanctions coming in,” and on and on and on. And that may have something to do with it.
But first of all, the underlying fundamental is financial uncertainty. That’s number one. But beyond that, it’s really something going on in the physical market that no one’s really writing about and I don’t know enough about the state other than it’s got to be part of it. The reason I say that is that the paper paradigm is very clear on how the markets move in the futures markets with trading this paper back and forth for contracts to buy and sell silver. And all they really do is set the paper price.
And of course the metals price goes along with that. I’m not trying to discount that very much. What I’m trying to state is that the paper markets dominate the price over and over again. And every now and again you’ll get in a situation like this where something’s going on, where something needs to be fulfilled and accomplished, and it hasn’t been settled out yet.
So for an example, let’s say there’s some bank that’s demanding a physical settlement in gold and they haven’t received it yet. Once that’s accomplished, you may, and most likely, see the market cool off and go more into some type of trading range where you’re more apt to be able to look at the paper trades, more of what we call levels that we’re used to seeing.
So, I think there’s something out there. Whether that’s occurring with silver or not, I doubt it, right now based on the fact that silver has been lagging gold so much. And there’s a couple of gaps in the charts that will probably be filled, one, you haven’t missed this move at all. If …read more
Source:: Gold Silver Worlds