➡ The article discusses the impact of buying and selling large amounts of stock on its value, the importance of being prepared for emergencies, and the potential effects of tariffs on the silver market. It also highlights the increasing industrial demand for silver over the past 25 years, particularly in the technology and renewable energy sectors. The article concludes by discussing the potential for silver to be used as a form of currency in the event of a financial crash.

➡ The text discusses the potential use of silver as a form of currency, especially in times of crisis. It highlights how silver, despite being undervalued, is still recognized globally and can be used for bartering. The author also mentions that in some countries, people are more familiar with using precious metals as a form of exchange. However, in North America, silver is not commonly used in this way, and there are taxes and markups that discourage its use as a monetary unit.

➡ The text discusses the Silver Users Association and the two silver markets: the retail and the derivatives market. The retail market, where people buy silver for personal use, has high premiums. The derivatives market, used by industries, offers silver at a lower price. The text also mentions that silver’s value as money has been downplayed, and its industrial use has been emphasized. The speaker predicts that when gold becomes too expensive, people might turn to silver as an alternative investment, which could increase its value.

➡ The speaker discusses the fluctuating value of silver, noting that it often spikes in both directions. They mention that when silver reaches a certain high value, there is little resistance and it continues to rise. They also discuss the potential for a surge in demand from industries that use silver in their products, which could drive up the price. Finally, they note that while there is currently enough above ground silver to meet demand, projections suggest a deficit in the future which could also impact the price.

➡ People are buying large amounts of silver to keep costs low, which influences others to do the same. The article also discusses the rules of silver investing, emphasizing that the lowest price isn’t always the best and that it’s important to buy calmly and not based on emotion. It suggests that investing 10% of your savings in silver and gold is a good hedge against inflation. The article also mentions the importance of physical storage of these metals and how global conflicts can impact the price of silver.

➡ The military’s use of silver in hardware and communications could increase demand for the metal, potentially impacting the silver market. This demand could be influenced by the current global rearmament trend. The author also mentions his upcoming article on the military uses of silver and encourages readers to follow his work for updates on financial systems and commodities. He also recommends a documentary that discusses the financial system and the end of the Age of Empire.

Commodity. Silver is the most essential commodity that exists to keep the Thai technological society going. Everyone touches silver a hundred times a day and doesn’t even realize it. Without silver, nothing really happens. Because I don’t like to say this, but facts are facts. Silver is a metal of war. The military use of silver is buried within the numbers. We have data from World War II and it’s phenomenal how much silver was used in that. Metals Traders that really know what’s going on were anticipating tariffs on the bullion markets and right now they’re exempt. That doesn’t mean a week from now there won’t be one.

Markets go down a lot faster than they go up. We are in the process of deleveraging and getting back to reality. Silver will be the money of last resort, not gold. Probably the most undervalued commodity out there. World War Three is already happening. This is a house of cards and it is in the process of collapsing right now. You’re going to see an economic crash the likes of which we’ve never seen. Hi folks, Canadian prepper. Here today on the channel we have David Morgan, who’s a renowned figure in the precious metals industry, widely recognized for his expertise in silver investing.

The founder of the Morgan Report, as well as the author of the Silver Manifesto. With decades of experience in economics and finance, he’s a trusted voice in the precious metals markets. He’s been featured on cnbc, Fox Business and other major financial publications. And as we discussed before the video started here, he also purchased one of our Survival Outdoor Canada jackets which he says is working out for him quite well, keeping him warm throughout the winter. Now this is an unusual day to have you on the channel because we are seeing erratic swings in the market. I mean, futures were down 5% and then it swung upwards.

And I believe the statistic is, is that it’s the largest market cap gain in a 20 minute period in history. And that was an hour ago. We’re not even at noon in the trading day and we’ve already seen the markets crash and then uncrash and then kind of crash again. And now they’re kind of going sideways a little bit. Anything can happen. And Trump just said that he is going to impose counter, counter tariffs on the Chinese to a tune of 50% starting April 9 if they do not relent. David, before we talk about silver, which is what I wanted to have you on primarily to talk about today and whatever else you want to get into, what are your thoughts of this, this market volatility that we’re seeing Right now.

And how are you making sense of all of this? Well, we could talk for an hour on that. But first of all, you know, as we all know, volatility is a sign of uncertainty and the markets do not like uncertainty. And we no one really knows the total repercussions of what these tariffs will do. We also don’t know if they’re permanent or not. I mean, Trump has been pretty wishy washy. First they’re on, then they’re off, then they’re delayed. Then there’s this country. No, we’re not going to do that country. So that adds to the uncertainty, let alone what the impact of tariffs will be in the financial system and what it will mean for the consumer.

I was on a little briefing earlier today and someone asked me similar questions. I’m going to go on a little bit longer, Nate. But if you look at the market as a whole, it’s been overvalued for so long that it’s out of reality. And I make the analogy of a good stock. In the old days, the Graham days, you look at the stalwarts of stock valuations from the early times, you would have a PE, a price to earnings of about 10. So if you made a million dollars a year, the stock price would be 10 times that amount.

Now you have companies that haven’t made a profit for five years selling for $300 billion. I mean, it’s absolute insanity. And I was using the analogy of a pet rock or a Beanie Baby. There’ll be a time when that Beanie Baby will sell for 500 bucks. But what is its real value? And it has to come back to reality at some point. Someone paid $100 for a rock, it could pick up, you know, anywhere. And 100 bucks, because it was a fad, kind of been in this, what I call fad mode for the stock market for a long time now.

Reality is setting in. So my bigger take, Nate, is that this is kind of a trigger to bring these valuations to reality. Markets, all markets, metals markets, commodities, go from undervalued to fair value to overvalued. Never had an overvalued stock market of this extent ever before in history. So we need to reconcile back to reality. And again, I think this is more or less a trigger for that. And I just want to be patient and see how it unravels or how it unfolds. And if we get back to reality in the long run, it’s better for everybody.

We don’t want to be in the Beanie baby world for yeah. And it seems like that sort of euphoria can only persist in an environment where there is assurances about, you know, future economic stability. And we’re clearly entering an environment where that’s not the case, where we have pending conflicts on the horizon. And even if Trump were to relent in his tariff propositions, I think the markets will still react negatively because of all the uncertainty and like you said, the wishy washy aspects of it. You can’t really, you know, companies are not going to want to do, to set up shop if they don’t know what to expect when you can basically change his tune on a dime.

In fact, there was some fake news this morning that suggested that Trump was considering a 90 day pause. And so when you have that kind of erratic behavior, you just can’t be confident enough to want to break ground on any new industry knowing when the whole thing could just be upended tomorrow. Well said. I just add on to that that I’m CEO of the widget company and so I have a board meeting and I say, look, I don’t know where we’re going in the future, but here’s our true earnings. We project they’re going to be off maybe 10%.

So we are not going to capitalize another plant because we don’t know what the interest rates are going to be and we don’t know what the marketplace is going to be. So we’re going to sit tight or let’s say they’re doing very well. We are going to expand, but we’re going to do it internally, organically, based on our earnings. And our earnings will allow us to build out another plant over the next five years and increase our margins by X amount. But again, focusing on reality, markets have to come back to reality however they get there.

You know, I think they’re going to get there, which I think is basically what you said. It’s time for us to, you know, become adults again and look at, you know, what are the true values of these, of these companies and let’s get there and move forward. So we’re looking at the price of silver right now, which appears to be on the up today, 2.3%. Of course, the by the time this video is released tomorrow, it’s scheduled for, everything could change. But last week we seen silver plummet nearly, I think it was 16% across a couple days.

Why do you think silver was down and was correlated with the downtrending market last week, but not today? Silver is a very small market relative to the commodity sector, it’s also got the largest amount of paper pushing entities than any other commodity. I mean if you look at oil, you look at wheat, any other commodity, even gold, you’ll see that the COVID ratio and the paper markets versus the physical commodity is vastly different in silver than any other commodity. So the paper price is the what you find on the screen, that’s a derivative price. What you’re seeing is the price for a contract.

So the point you’d asked is this. In a large sell off, even gold sells off. And the reason being is that these margin calls come in because everybody’s leveraged in the market. To get a margin call you got to put up cash. So the hedge fund managers as an example, say, oh, gold’s up, I got a profit there, I’ll sell off some gold and I’ll beat my margin call. Silver on the other hand, isn’t used as a hedge nearly as much as gold, but it is a small market, so if people want out of it, they’ll sell it.

And dollars sell in. Gold has X amount of power, a dollar, that same dollar selling silver has like 10x power. So it’s such a small market. I mean, I don’t know if I should go on but in the penny stock world, some of these market caps, when these companies start out, it’s like a million dollar company or $2 million company. Someone comes in and buys $200,000 worth of stock, it’s going to drive that 20 cent stock up to 40, 50, 60 cents. On the reverse if that a million dollar market cap on a penny Canadian mining stock and I sell 200,000 and it was a 20 cent stock, it’ll probably take it to 2 cents because markets go down a lot faster than they go up and the sell pressure always manifests greater percentage wise than buying pressure.

All right guys. So as some of you know, Canadian Prepper is a fully independent channel. We don’t have sponsors and we’re beholden to nobody. You can help support supporting yourself by gearing up@canadianpreparedness.com I know that in an emergency having the right gear can make all the difference. This is why I’ve tested and curated the best preparedness products on the market so that you can be confident and ready for whatever comes your way. Now back to the video. How do you think these tariff announcements are going to impact the physical silver markets? Because obviously silver is an industrial metal primarily and maybe you can talk about the proportion that’s industrial and jewelry or finance related.

But how do you expect if this tariff regimen persists, will that impact precious metal prices, chief among them silver? For the sake of our conversation. Well, for the right here and now, before something wishy washy sets in. It won’t. We all thought it would. That’s why we saw such a movement out of the lbma, the London market, into the New York market, the comex, because the metals traders that really know what’s going on were anticipating tariffs on the bullion markets. And right now they’re exempt. That doesn’t mean a week from now they won’t, there won’t be one.

So right now it doesn’t have an effect. In fact, it could be. I say could not would they might see some metal go back from New York, back across the ocean into the London market? We don’t know that for sure, but that’s where the arbitrage lies. So it could take place as far as the physical market. It is really what will eventually run the price, but it really hasn’t happened yet. Again, all futures markets, oil included, are based on the derivative price, not on the actual physical commodity. Now, I want to get in the weeds too deeply.

But when the oil price is set at under $60, is that what’s paid in the physical market? The answer is yes, but it’s reflective of the fact that there’s enough oil at that price to meet the demand that day, that week, that month. If, for example, there was a problem in the oil markets, let’s say the straight of removes under the current scenario we’re looking at in the Middle east, well, all of a sudden what happens? What happens is there’s a cutoff of major supply and the oil price will be set now by the physical demand for oil.

That can’t be met because there’s been a large cutoff. So I think I’m making my point that the futures market works great until it doesn’t. And so do you think that tariffs will increase silver demand or decrease like in a multipolar world? Maybe help us understand what the demand structure is going to look like and how it might differ from a unipolar world? Well, you outlined it earlier today. I watched your earlier video and first of all, the industrial demand for silver for the last 25 years has been rather phenomenal because if you go back to the year 2000, the percent of silver used in the industry was 35% of the market.

Now it’s well over 60%. On a mining basis, it’s 80%. And that’s at the same time. So Think about this people. 25 years ago, the most silver we mined out of the earth was 550 million ounces on an annual basis and industrial was 35% of that. Today we mine 850 million ounces out of the market, 300 million ounces more and it’s 60, 65% of the market. So that trend will continue, I believe. Yeah, there will be some curtailment as we start going into what I think is going to be a greater depression. But that will take time.

And again we’ll go back to reality. We’ll be looking at things we need, not things we want. A lot of the fluff stuff is going to be going away. We’re looking at food, we’re going to look at stuff we need. So primarily the commodity sector will be robust and we’ll see the stock market will get back to reality. The commodity silver is the most essential commodity that exists outside of oil to keep the Thai technological society going. That’s not going away. 44 million ounces of silver and aid per year. And what semiconductors? You think we need semiconductors? Think of everything that you do in your normal day.

A computer screen, a membrane switch, even the defrosters on your car truck, that’s silver. Everyone touches silver 100 times a day and doesn’t even realize it. Without silver, nothing really happens. Without oil we can’t move. I mean we need energy is number one. But number two, silver. There’s more patents on silver than any other mineral. There’s more patents on oil than there is silver. But it’s key. So the point I’m making is this. The industrial thing was built into the price as you talked about earlier today or yesterday. So I think the markets already realized that this essential metal is at this level regardless of a recessionary environment up ahead.

It’s already anticipated it, it’s built into the price already. And has things like renewable energy, has that played a big role in silver’s industrial demand? Like is there any future technologies that perhaps don’t exist yet above and beyond the semiconductor stuff that you think is going to increase demand for silver in the future? That’s a two part question. Even though you don’t know that or maybe you do. First of all, I think the trend is clear. We continue to use more and more silver. However, on the solar part, that’s been instrumental in moving silver higher the last three or four years, drastically higher because the solar demand has really taken off the last three or four years.

And so that’s been the key. On the industrial Side, however, there are substitutes. There is graphene that can be this nanotech and it conducts electricity pretty much as well as silver does. Now it’s uneconomic at this point in time, but that doesn’t mean it won’t become economic, you know, a year from now or six months, who knows. So there is a possibility that there could be a substitute for silver. Right now there’s very few substitutes for silver and they don’t do as well. For example, in your cell phone there’s very little silver, but it’s absolutely essential.

But you could use copper. If you did use copper, conduct silver conducts electricity well but not like silver does. So you have an unreliability factor. So that manufacturer might save a little bit of cost, but they’re not going to be in business because it’s not as reliable as a silver based cell phone. So gold could replace silver for conductivity. Platinum, palladium, but they’re more expensive. So there aren’t a lot of substitutes. But I don’t rule out the fact that there could be a future. What about silver in finance? Are we ever going to see a scenario and how important is the silver bullion market? Maybe let’s start with the LMBA LBMA stuff.

Can you explain to people how the, the silver arbitrage trade works? I mean we’ve talked to experts before and they’ve explained how it works with gold. Is silver bullion still a big player? Is it significant? Is it increasing or decreasing? And do you, what are the future prospects, I, I suppose of silver being used as a, as a monetary metal? Well, I like to go through this. First of all, I’m going to refer to the 10 rules of silver investing that I wrote over 20 years ago. It’s a book called Investing Rules. The publishers look for people that are kind of at the top for all kinds of things.

Mutual funds, futures markets, options markets, real estate. And they picked me to write the 10 rules of silver investing. Rule number one goes something like this. In the event of an all out financial crash, first of all, no one wants to be a prophet of doom. But in the unlikely event of an all out financial crash, silver will be the money of last resort, not gold. Because gold has too high a unit value, silver will be used in day to day transactions. Silver has been used in more transactions worldwide than gold ever has. And that could maintain.

The word silver means money in all the Romance languages. So if I go down to Mexico and I say plata, no es plata. In other words, what many people say, well, silver is only an industrial metal, it’s not money. And I said that in Spanish, they’d laugh at me. I’d be saying money isn’t money. What are you talking about, David, what are you saying? So it still has a monetary aspect to it, whether people believe that or not. And silver is still lawfully money, but economically it’s not worth it. Why would I take a Canadian maple leaf that says $5 on it and spend it, which I could legally at the store and I’d have to take face value for it when it’s worth 40 Canadian? I mean that’d be stupid.

But legally I had the, the vendor would have to take it. In fact, I suggest that in America with, you know, the 1960 pre1965 coinage that still exists, it’s called junk silver. Some people call it constitutional silver. I could walk into Walmart and easily throw some silver quarters down there and a couple fiat dollars and buy something and the cashier probably wouldn’t even know the difference. Now if I did that with a gold coin, they probably look at it, not know what to do because it would stand out. They had never seen a gold coin in their life.

And even though I’d have to, you know, get the, the face value for it, it probably upset them. They’d probably, you know, stop the register to call the manager. So I do think that silver has a monetary aspect still. And in, let’s say, you know, Canadian prepper mode, I wouldn’t want to put words in your mouth so you can back me up or not. It’s the best barter system we’d have. In an all out situation where let’s say the banks are closed, power failure, hurricane, weather conditions or whatever, you could teach a six year old kid a real silver quarter or dime in about three minutes.

It’s not really hard to do. And they would realize it has value and therefore, yeah, I’d rather, you know, swap you for this, you know, piece of silver than I would another flat screen tv. Yeah, that’s a pretty big psychological leap though for a lot of people. Right? Because most people nowadays, I mean they don’t understand gold, much less the utility of silver. I mean, you see these viral videos where, I mean it’s kind of dated now, but where they would go up and offer somebody a gold coin or a hundred dollar bill and most people would take the $100 bill.

I could imagine that the example would be much worse if it was silver being used instead of gold. So I guess amongst people who are in the know that Sort of silver based trading economy would likely flourish. But I think, you know, the average person is still so out of touch that I’m not so sure that the Mad Max silver economy, it might take a while to get there. Maybe not in other countries. Like you’re saying world in terms of globally, silver is still recognized. And I wasn’t aware that the term silver actually meant money. That’s interesting.

But North America people seem to be oblivious, with the exception of course, of the small percentage of people who are stackers. Right. Oh, you said it. Right on. I mean going back to, you know, what you alluded to with Mark Dice, I mean he would give a Hershey bar or a silver bar. Hershey’s bars were two bucks and the silver at the time was, I don’t know, 20 bucks an ounce with 10 ounce bar, 200 bucks. And I don’t think there’s ever anything he filmed. People didn’t take the Hershey bar. I mean they’re absolutely clueless, you know, and they actually would tell them after the fact or sometimes before, hey, there’s a man Encino coin.

They’re right behind me. You can take this and verify what it’s worth. No, I don’t want to bother, you know, I don’t, I don’t know what silver is good for, you know, and yet they get on their cell phone as soon as they walk away from them. Without silver they wouldn’t have a cell phone, but they don’t know that. So no, there’s a lot to what you say. But my idea is that in a situation where, and it’s an extreme situation, you call, you know, Mad Max. And I’ll agree with that in those instances, people wake up pretty quick and you know, reality comes through in a way that it never has in their lives perhaps.

And now everyone gets real, real fast. And so now what happens? Well, that education factor goes out pretty quickly. Does it go everywhere? No. And furthering what you said a moment ago, because it’s very important. If you go to Argentina for example, where they have a currency crisis about every decade, what do they do? People know how to survive. So they keep US dollars physical greenbacks and they also do a lot of bartering with silver gold as well in these open forms that we used to call flea markets in the United States. And one thing I didn’t know, I’m always learning, is that it wasn’t silver coins so much as silver jewelry.

So they would use a bracelet, a silver chain, silver ring, that type of thing. And this ring has Got this much silver, they might weigh it in some cases. Okay, I’ll give you, you know, this chain and this ring. I want, you know, I want that case of apples. Okay, it’s a deal. So as you said, in other countries, they’re much more familiar with precious metals used as a monetary exchange than they are in the United States or Canada. And yet we have the most advantage as far as not having huge markups in silver. We want to talk physical silver.

So let me drone on for just a moment more about what most people don’t know is silver physically is discouraged on an almost worldwide basis. If you want to buy silver in any European country, there is a huge VAT value added tax on top of it, but it doesn’t exist on gold. Asia, very big markups. It’s discouraged as a monetary unit in almost everywhere except North America, meaning the US And Canada. So if you go into a coin shop and you say, well, you know, I want to protect myself with precious metals, and there’s no value added tax on gold, but there is on silver.

Most people are going to buy gold because if you have to overcome the normal premium, which let’s say is 5% and then a 17% value added tax, and you got to get a 20% move in silver to break even on the, on the backside to sell it back to that coin dealer, you’re going to think twice. That’s a big move just to make up the premium and the value added tax. And no one ever really talks about that. Most people aren’t aware of it, but these are things that are subtle things that take place. I mean, silver was officially demonetized in 1873 in the United States and let silver was still in circulation in the United States through 1964.

I made some notes, Nate, I just want to make this real quickly, but I looked at silver use as money in Canada. So according to Google, in February 2025, employed people in Canada was 21 million. And the average hourly wage, according to Google, is 35 Canadian an hour. And the price of Canadian dollars at this is about $40. So if you take that price and you look at being paid in silver, that would be 7 ounces per day for the average Canadian. And that would be 717 million ounces in one week. And the total silver supply, as I said a moment ago, is 850 million ounces mined and about 150 million ounces recycled.

So a billion ounces. So two weeks of being paid in silver in Canada would wipe out more than the silver supply. On an annual basis. And Canada represents one half of 1% of the world’s population. So that gives you the idea of how undervalued silver is relative to historical standards. If you go back in the 1873, there were about 1.3 billion people and there was about 4 ounces of silver per person. And in today’s monetary System, to have 4 ounces per person, you’re talking 8 billion people. You’d have to multiply that by 4 ore to get to the same place.

And it really isn’t that much silver in investment form that would ever take, you know, silver back to the monetary standard. So silver really is undervalued relative to gold and relative to anything else. It’s probably the most undervalued commodity out there currently. That VAT tax thing is very interesting. So do you think that that is done, that is done to discourage people from buying it? Is there a conscious intent there to try to keep the price of silver down in doing that, or is it just, you know, the consequence of governments wanting to profit off of silver? Or is there something more nefarious going on there? Well, I think, you know, this is opinion.

It’s a studied opinion. So there is or was you no longer find on the Internet. Well, for a very long time there was the Silver Users association and some of us call it the Silver Abusers association because there is no association for wheat or corn or anything else. But this group of users got together and formed a coalition to say, you know, we use silver in industry. We want to make sure. Now, again, this is my studied opinion that we don’t want to see silver use as money. It’s way too valuable to our bottom line to keep it low price.

So our margins for making, you know, radios, television sets and everything else. So let’s start this users association, wink, wink, and make sure that we put out the, what I would call propaganda that silver isn’t money and that silver’s only use is industrial use. And oh yeah, and this is conjecture on my part, Nate, but what I said a moment ago is let’s make certain that these Europeans that know the word silver and money are synonymous, let’s just throw a value added tax on there, make sure none of these knuckleheads want to buy silver for, you know, a rainy day or a savings plan or an investment purposes.

Let’s just discourage them from doing that. So there is something to the Silver Users Association. You have to go back on the Wayback Machine to learn much about it, but it did exist and it did exist for a long time. And who were the big proponents back in the day? Dow Chemical, Kodak. Because silver was used in photography before the digital world started. And of course Kodaks basically almost non existent. But that is a point. I’m glad you brought it up because you know these are things that I’m not saying I’m a know it all. I’ve just got some age on me and I’ve studied the silver market my whole life.

But these are things that most people in your age group or younger probably never even heard of or unaware of. And then you. Again I’m asking the question a second time for emphasis. Why, why isn’t there a oil users association? There’s not. That’s very interesting. And so the premiums on silver, what I’ve noticed and perhaps I’m mistaken in this but it seems like, I mean the premiums are high but there doesn’t seem to be a lot of price breaks in terms of how far you go up. Like typically you buy more of something you get a better and better discount.

But it seems as though at least today those discounts are minimal at best and there really is no real incentive to buy like a large bullion bars or it’s a very little. Is that part of the the price fixing is that they’re trying to. Or is that just a reflection of the sheer demand in silver that you’re not even getting price breaks on those premiums when you go up to the greater boolean bars anymore? Really glad you asked that because there’s really a large misunderstanding about silver that you just brought up. There’s really two silver markets.

There’s the retail silver market or the investor silver market. And most people think that’s the silver market. These are people that buy Canadian maples, 10 ounce bars, 100 ounce bars, kilo bars. And that’s a rather big market and that is has very high premiums. Now if you buy in large quantities you will get a discount but we’re talking you know, a million or 2 million before you really start to see a discount at this price. And some people don’t discount it. There was one dealer that I’m well aware of and this person bought, you know, I forget it was a huge buy a million ounces of silver, I forget but they really didn’t give them a discount which you know, I think they could have.

But anyway, now the silver market is the derivatives market which is commercial 1000 ounce bars. And when you’re buying those, you don’t have those huge Premium, you’re buying silver at the derivative price, plus transportation, plus clearing. There’s a little bit of paperwork and a little bit of a markup, but it’s very slight. So if you’re buying silver for industry and you see silver’s at 30 bucks, you’re going to pay $30.28 and you’re going to have it on your front doorstep. But on that same day, if you’re buying silver at 30 bucks, you’re buying a silver Maple leaf, you may pay 35.

And that’s the problem, I would say problem, but that’s the difference between a, a poured bar of roughly 1,000 ounces of 999 fine silver and a finished product that’s stamped by the government called a Canadian Maple leaf or a 10 ounce bar or whatever. Now, it takes money, it takes cost, labor and electricity and everything to take that silver block of thousand ounces and to melt it down and extrude it and stamp it and put it in a press and make a coin out of it. And what does that add to it? Well, it depends on a lot of variables, but 50 cents, call it a buck.

So that $30 silver is a dollar more. So it’s 31 to make the coin. Now that person, that mint, has got to make a profit or they’re going to be in business. What do you mark it up? You know, well, the going rate’s usually around 5% or so, and that covers, you know, their costs and gives them a profit to stay in business. But that’s a different market. And that’s what people miss. They miss the fact that the retail silver market is just a subset of, of the silver market. Remember, we’re talking 65% is industrial. So what’s the rest? 4% in silverware, 12% in jewelry.

You’re looking at not that big a portion is in investment demand anymore, what I call monetary demand. And so do you think that a lot of people have the criticism while silver is actually down, if you were to buy it in 2011, you know, the price of silver went up, shot up to 50, and you know, we’ve yet to see that again since that time. Then you factor in all the inflation that’s happened since that time and you know, even though silver is up, you know, since 2,500, 600%, it still seems to be lagging at this point in time.

When do you think the breakout is going to happen? That’s the golden question or the silver question, I guess. And you know, is it just a matter of Psychology. You know, you’re talking earlier about how the delusion could break at any moment. The, you know, that pink cloud euphoria that is currently driving this market irrationality. We’re living in a day and age where a switch could get flipped at any moment and people could, you know, panic, buy into silver. Or, you know, maybe there’s some fad that starts that, you know, triggers it, some meme, you know, that that triggers people into silver.

What do you think is going to be the trigger to really get beyond this resistance that seems to be around the $35 mark and. Yeah, let me just share your thoughts on what the, the future prospects are for this. I think it’s going to be gold because what happened in the late 70s and that was when I was young, the idea that silver was money was kind of in everybody’s consciousness. Maybe not at an open conscious, but subconscious, because we’re circulating with Silver through 1964. So now it’s 1971, I’m graduating from high school and I still think of silver as being money.

In fact, you might find a real silver quarter and you change from the groceries. It was rare, but it did happen occasionally. So what happened in the 70s when. When gold went from the 300 level to 850 on January 21, 1980? The rush to gold and silver was so strong in that very few months that people got priced out of gold based on the average wage in those days. I said, wow, I’m missing the boat. And the fear of missing out exists in all markets. So that FOMO took place if you so, geez, I can’t afford gold.

It’s 500 bucks. I only make 500 bucks every two weeks. But silver is only. And at that date and time, maybe $15 the ounce, I’ll buy silver. So there was a spillover from people that wanted to buy gold that really couldn’t afford to buy gold into what they consider the next best thing was the silver market. I think that could happen again. That’s number one. Number two, the education factor is just too low, as you’ve pointed out so well, most people are just often Nvidia or, you know, some tech stock or some AI stock or. And they don’t carry cash.

You know, even paper money is kind of Persona non grata in most of your millennials on down. I have two daughters that are little deals. And, you know, you’re like, you see if they have 10 bucks in their wall. I mean, they do everything with their Apple Pay or, you know, their credit card. So Silver’s definitely been demonetized, consciously or unconsciously. I think it’s more or less deliberate, but, you know, I can’t make this strong argument. However, again, going back to when the going gets tough and we see a revaluation of the asset classes back to needs, commodities and equities coming down and hitting reality, they’ll be looking at what is the top tier of all commodities.

They’re the monetary metals. If you look at the correlation of silver to gold, it’s still very high. It’s looking at like 80, 85%. So people say, well, silver is not only industrial on and on. Silver never asks when you’re buying it, are you buying me for industrial purposes or are you buying me for monetary purposes? Just doesn’t know. It’s an element on the periodic chart. But that correlation still remains. So I’m still fairly bullish on silver. But I have to admit, Nate, I’m rather surprised that we’re seeing a gold silver ratio of 100 to 1 again.

Now when that happened during the illness in March, I loaded up, we saw that 125 to 1. And these spikes really are just that, spikes. I wrote an article for Futures magazine, which is fairly prominent magazine to be an author in, and they wanted me to write about silver, of course. And I called the article spiked. And I explained that you see these huge spikes in silver up and down, and then when you saw the spike in 1980, you better get out. And when you see that spike low, you better get in because they it over does it on the upside and on the downside.

And then these downsides moves take advantage of. You had about three or four days to buy silver in March of 2020. And I bought the day before the absolute low. And I called my dealer and I got a discount because I was buying in size. And I said, geez, I missed it because it went down like two more bucks the next day. And I said, wow, you know, I’d sure like to say. And he goes, yeah, you know what your actual price would be $0.50 difference. So in the real world, even though the paper price was $2 less, the physical honest to God world was only $0.50 less.

So what do you think? Again, going back to this like resistance level, that’s at around 35 bucks it appears. I recently was talking with another silver connoisseur of sorts who was saying that they thought that once it transcended the $37 mark, that we would be into a whole new territory of things. And I guess the question would be Is that. I mean, I presume that would be based on the fundamentals and not just, you know, hysteria, fear of missing out. Do you have the same understanding of the situation, or do you think that it’s pretty much.

It’s any. Anyone’s ball game at this point. Could it go down? Could it go up now? Good question. No, I know Jordan well, and he’s right. I mean, you could choose a different number. 3334. 35. I’ll use 35. But that’s called resistance. There’s a lot of people that bought silver in the 2011 peak, and it went from the 50 down to the mid-30s and stage for about a year and a half. It stayed above 30 for about a year, then it dipped down, then it went back up. So we have a lot of people that bought at that level.

That’s called overhead resistance. So when you get back to that level, people go, oh, my God. Now, even though it’s from 2011 to 2025 and $30 is worth a lot less than. Or 35 is worth a lot less than it was, they still feel psychologically, I’m okay. So they tell their wife, hey, we bought a 33. I sold it 33. We didn’t lose any money. Well, they did lose purchasing power, but psychologically, feel great. We’re out. I’m never touching silver again. I hate it. I wish I never listened to so and so and forget about it.

Well, that overhead resistance eventually gets eaten through. And once it gets to the higher level, let’s say 36. There is no one that doesn’t own silver at. At a profit. Now, there could be a few because it did go to 50. But for all practical purposes, everybody, like gold, is at a new high. And there’s nothing more bullish in the world than a new high. When a Stock goes from $5 to $50, how many new highs does it have to make? A lot. Over and over and over. And what happens is psychologically, and this is what’s taught by William O’Neill of Investors Business Daily.

And I studied under him at his class, actually, which is. And I never knew this in my early 20s about how stocks really work, but when it’s a new high, everyone says, my goodness, I’m holding on to my stocks. How high is I? So there’s very little selling pressure. And any little bit of new buying pressure. It’s the bid ask. I’m not selling it. Who’s. I’m asking this price. It’s higher than it was yesterday. Are you going to bid up the price? And the answer is yes and it keeps going up and that’s all. Markets work that way.

So when silver gets to that level, there will be very little resistance. Everyone will hold and say, finally, where are we going? 50. And when we get through 50 and get to an all time nominal high, not an inflation adjusted high, that’s when the euphoria is going to break out and that’s when we may get to 60 and three weeks kind of thing. And then the industrial side’s going to come in and go, oh no, the Silver Users association isn’t working. What do we do now? If I don’t own silver, I’m out of business. So there’ll be a two fold power play into the shark feeding frenzy potentially.

Because if I’m Nvidia or I’m Apple Computer or I’m Tesla and I see $60 silver and I see there’s a big, big volume of retail buying in silver, my industrial base is going to say we better buy it now while it’s still cheap, because $60 is nothing because we only use 0.1 gram per product, but without it we can’t manufacture it. So then there’ll be a possible, and I believe this will happen, industrial run the silver at the same time there’s investment run the silver now what do you think will happen? Look, Nate, Warren Buffett has over $300 billion sitting on the sidelines.

What is that? That’s a 10 year market supply of silver and Buffett loves silver. In the late 90s, Buffett bought 130 million ounces of physical silver off the market. And the reason he did that, he loves silver now, he poo poo’s gold all the time. But none of the commentators ever ask him why he buys silver. And when he bought it, he took it off the comex. And after he took it off the comex it changed the rules that you cannot take that kind of amount off of the COMEX anymore. And so what happened was the lease rates went up to 17% for almost two years.

So they only gave him 90 million. Out of his 130 million, 40 million was given to him over the last couple years. All of that silver went to the LBMA. And then when he got the full 130 million ounces, JP Morgan’s comes out with a silver ETF out of London with 130 million ounces of physical silver. Go figure. This silver demand issue, so how does that work? Like, so if I’m a company and I need a Certain amount of silver is there. Like there mustn’t be a bidding war. If the price, if there’s, if demand exceeds supply, as we’re told by however many ounces a year, how does that not bid the price up? Like how does that price fixing remain low? If I’m Tesla and I want to get my hands on more silver and I can’t, is it just because companies are not able or unwilling to bid up the price to a certain degree? Or can you maybe explain the demand supply shortfall? Sure, it’s from the above ground stockpile.

So there’s enough above ground supply to meet that deficit for years. It’s already taken place in the past. Between 1990 and 2005, there was a huge silver deficit of 100 million ounces a year on an average basis. In 1990 there was roughly 2 billion ounces of silver, which means commercial bars, thousand ounce bar blocks. And from 1990 to 2005, 1.5 billion ounces was eaten up. So we went to 500 million ounces of those blocks. That was a very low supply, yet the price did practically nothing. And the above ground stockpile started to build up from that 500 million ounces higher and higher and higher from 2006 up until about four years ago.

And so as the supply was increasing above ground, the price went from. I forget the exact, but it stayed at 19 and then it went up to 50 as you mentioned, and the above ground supply was building. So there’s really not a very good correlation between supply and demand as far as physical inventory. Now right now, if we get to a projection that Matt Watson, who’s a friend of mine that’s an independent analyst like me, he’s done a projection on silver just on the industrial side going forward to 2050. And in his work he shows that we’re basically going to be in a deficit for the next 25 years and that the above ground stockpile will be eaten up.

And it’s a guess or guesstimate because we’re short about 250 million ounces a year. We probably have at least 2 billion ounces in above ground supply. Why? So as long as the people that are holding the above ground stockpile are willing to sell it at the going price, you’re not going to get a bidding. But it’s when that people have warehoused it like they used to and say, I’m buying all the silver, I’m buying two years worth of silver, put it in my warehouse and I’m going to hold on to it. Because I want to keep my costs low and therefore, well, someone else says, oh, mitSubishi just bought 2 year supply of silver and I’m Tesla, say, you know what, it’s not a bad idea.

We can’t even mine it for that price. Maybe we should buy two years worth. But right now the above ground supply is ready and able to keep that price within these parameters because it’s a quote unquote surplus. Okay, interesting. Now in your article, I guess it’s more of a paper, I’m not sure what you would call it, but you talk about the 10 rules of silver investing. Can you maybe, I guess maybe not go over every single rule, but just some things that people should keep in mind if they’re looking at this from an investment point of view.

And of course disclaimer, this is not financial advice of course, but what are some strategies and some things that you encourage people to, to take into account when looking at this as a hedge against inflation or what have you? Yeah, first, you know, I don’t have them all memorized, it’s been a while since I wrote them. But one of the things I talk about is, is the best price isn’t always the best price. You can get a low price and the dealer goes out of business. And this has happened time and time again. Northwest West Territorial Mint that was in Seattle, Washington used to advertise these extremely low premiums on silver.

But they’re very long on their deliveries. You buy it, you’d have to wait for a very long time. They went out of business. So a lot of people were caught holding the bag. And so that’s one thing. The other thing I think is really important is dollar cost average if you’re going to stack. And I like the idea of stacking because for the average person, if you had saved in silver and or gold and I’ve always advocated doing both if you could afford it, just put your savings in the real metal and keep your checking account for your daily expenses.

Because even though silver has not performed nearly as well as gold, you can still buy gasoline for a silver quarter or pretty close to the United States. When I started driving, we were off the silver. You know, silver coinage was gone, but we’re still pretty close to that. And 25 cent silver piece would buy you a gallon of gas. That price now is pretty close to a gallon of gas if converted it to fiat. So it does more or less maintain its value. Obviously I’m not buying gas for 25 cents. It’s that 25 cents in silver is worth 1012 times the face amount.

So dollar cost average instills discipline and the market goes up and down. You just average in and it’ll bull market you come out ahead because it continues over, over the long term to go up in, in price or up in value. The other one is how much is enough. And I try to make these pithy, you know, like how much cough syrup would you take with a cough? You know, you can overdo it. And I recommended 10% in that article. And the biggest complaint or people that get upset are usually people that bought too much, bought at the wrong time and bought the wrong kind.

So they got bamboozled by a somewhat gray area dealer that talked them into these sort of rare silver coins, which is more or less a scam. They had a huge premium and they were excited by FOMO or they heard, you know, somebody talk about silver and they put their, you know, they overbought, they bought more than 10%, they, they borrowed money, whatever. And this is a mistake. You don’t want to buy an emotion. You want to buy calm, cool and collected again, dollar cost average. So that would be the couple of rules I go through. And the other thing is too much.

I mean, I had a guy from Australia call me one time and he’d heard somebody else talking about the merits of silver investing and he way overdid it. He’s a business guy and he goes, man, I wish I would have listened to you first. Had I done that, I probably would have calmed down and just bought a reasonable amount. Now I’m over invested, what do I do? And I gave him a few strategies of what it could do, but I hear that often. So you think that 10% is sufficient? Because I’ve always, you know, wondered about that number and you know, why is it just that, I guess, you know, if you, you lose everything and you still have 10%, is it guy? I mean it’s heavy too.

It’s cumbersome to store. It’s a security liability. Why 10% and how do you advise people in terms of storage? And do you actually advocate for the physical over the paper? Yeah, well you answered your own question. I mean basically the 10% comes from what you said in history gone by. If you had 10% of your savings in, and I would say silver and gold, just to be specific, and everything went to zero, silver would go up about tenfold. In fact, if you go from the crisis of 1980, silver went from the official price of Fortune 4222 up to 850 intraday spot market.

So that was, you know, a 20 fold increase, round numbers. But real estate didn’t go to zero, the stock market didn’t go to zero. So but that’s the idea that you could, everything else could go to 0 and that 10 would still break you even or maybe even better than that. So that’s why it’s a hedge position. Again, you don’t really want to buy too much, you want to buy a position. It’s like, you know, a survival situation, you know, like a lot of stuff that you teach. I don’t want words in your mouth, but you know, I might need, you know, two of my jackets for, you know, my neighbor or something or a spare for myself, but I don’t need 22.

There aren’t 22 people in my area in Montana, so remote, you know, so you got to kind of use your head on this stuff. And she asked me a follow up question about the 10%. There was. What was the follow up? The storage aspect. Right. And physical storage is important and you got to do it with the right people. You don’t want an intermediary if you can help it. I will say for your audience, if you’re interested in storage, send a email to me. Support themorganreport.com that support@ the Morgan Report. But store storage in the subject line.

I’ll get back to you with some recommendations. I don’t want to say it publicly because it is private outside the banking system, outside of Brinks or Garda or Loomis or all these other that I have nothing against. But I can get you a better deal and keep it more private and therefore write me if you’re so inclined. Okay, so, so you then do advocate for physical purchases as opposed to paper then? I, yeah, I have said from day one that to start a precious metals portfolio you have to start with the real metal first. And after that’s accomplished, you want to buy the Morgan Report and learn how to leverage smartly in the equity side, we will, you know, that’s what we specialize in.

But I don’t really want anyone to be on the equity side only unless they have physical metal to start with. It’s that simple. Okay, and now just a few final questions here. With respect to the state of things, things in the world. How do you figure another major conflict will factor into the silver price? Like it appears as though things are lining up for a conflict, a major conflict in the Middle east, possibly even something transpiring in Taiwan with China. How do you figure if we did see a full blown block, blockage of the Strait of Hormuz and a conflict ensue with the Iranians and maybe something developing with the Chinese.

How might that skew the prices of silver in the demand? Well, we go back to 1980 again, I know, keep referencing it, but you know, the gold price hit while the Afghan war started the first time. And it would definitely have a price on an effect on both the precious metals, primarily silver, because I don’t like to say this, but facts are facts. Silver is a metal of war. I mean all the batteries you use that are mil spec military specification, they’re using silver. It’s far superior to lithium, it costs more. But when you’re out in the field, you don’t want anything to go bad.

You want something longevity that’s there 100% of the time. And so the military use of silver is buried within the numbers that come out from the two major studies on silver from the Silver Institute and CPM Group in New York. And so when you see electronics, you don’t know how much of the electronics is military. When it says brazen and alloys, you don’t know how much of that soldering takes place for, you know, satellite dish or satellites or you know, military hardware. I have spent countless hours trying to get specifics on military use of silver and it’s almost impossible, possible we’re actually going to write about it in my private work in the next issue.

But it’s, I’ll tell people, don’t buy the report if you want absolutes, but we do have data from World War II and it’s phenomenal how much silver was used in that situation. So again, it would put, it would put pressure on the silver market. I mean your torpedoes, your missiles, all your communications, your batteries, there’s a lot of silver used and we were really underprepared, believe it or not, relative to what a really big conflict could bring, unfortunately. I mean, I’m not a pacifist, but I’m almost a pacifist. I just really think that as I’ve said in the past, I did a series on this.

All wars are bankers wars. Whether you agree with that or not, it’s pretty clear if you study history that the bankers usually take both sides and profit handsomely off of, off of the war situations. Now that we’re moving into a new phase of rearmament in Europe, United States, everywhere essentially, it seems inevitable that there’s going to be increased demand from the MIC for silver. And I think this is something that, you know, may actually trigger or at least be a confounding factor in the, in the new commodities super cycle that people are anticipating. So yeah, that’s, that’s interesting that you say that.

Yeah, I too have, am reluctant about, you know, putting money into something that is going to be used for the purpose of war. Which is why personally, and this is just a personal thing, I divested from all my military stocks after October 7th happened. I was, you know, had a bit of exposure to, you know, the Lockheed Martins and the usual suspects because at that time it was, you know, I guess there was less of a connection there, a direct connection. And then, you know, as we’re entering this period now, I mean, we’re seeing in Europe the military stocks are exploding.

And so yeah, I agree with you that that’s definitely going to be a, you know, an indirect boost for silver going forward here. I’m looking forward to that article that you’re going to write about the military uses for silver. When do you expect that that’s going to be coming out? Oh, probably about 30 days from now. Okay. Where can people find that information? Well, that’ll be in my private work. Although I might put public article, take a clip from it. But right now, I mean I encourage everybody to get on my free email list@the morganreport.com There’s a free newsletter I put out usually about three times a week.

It’s interviews like this that are public domain. And then I do one man in a microphone every Friday or Saturday and I do a market wrap up. Stocks, bonds, precious metals, of course. And maybe what’s in the news. By the way, a shout out to you, Nate. I mean Your World War 3 updates are really worth the time. So thank you for what you do and have done for a very long time and pretty, pretty spot on. You’re pretty apolitical and you go by facts alone. I try to stick to those parameters. If it’s an opinion, I’ll let you know.

So that’s one. The other one’s my Twitter feed @silverguru22. That’s the only place I’m not shadow banned. I’m shadow banned on YouTube, on Facebook, on LinkedIn. But on Twitter, for whatever reason, it seems that they let me run free. So I post most of that myself. So stuff that will be pertinent to the financial system at large and of course the metals and other commodities. I mean the Morgan Reports looked at all the, all the minerals. Basically we were first on the rare earth elements, lithium, coal, cobalt, the battery metals. Copper, you name it. But right now we’re focused primarily on the monetary metals because that’s where the most emphasis is in these trying times.

Well, that’s excellent. Well, I’d encourage people to go and check all that information out. Thank you very much for coming on today. Any final thoughts for us? One more, Nate, if I might. I’ve written three books. Two are on silver, one’s on trading called Second Chance. Then I was going to do another one. I decided to do a documentary instead. And this looks at the control mechanism surrounding the financial systems and money in particular. You can see the trailers at SilverSunrise TV. The filming has been done. I’ve got some notables in there like G. Edward Griffin who wrote the Creature from Jekyll Island.

I’ve got Foster Gamble who did the Thrive one and Thrive two movies. We are Friends. I’ve got Ellen Brown who wrote Web of Debt. I’ve got some notables, Mr. Vieira, who’s probably in my view the best top constitutional attorney in the United States of America. So a lot of time, effort and money has gone into this because I felt that a documentary would be superior to writing another book. Because honestly, Nate, people just watch everything on YouTube. They don’t read need anymore. Yeah. And if I really want to get the message out of what the spiritual side of the monetary system is about and why there’s so much control surrounding monetary and the money powers, I wanted to get that out there.

I’m not sitting there with all the answers, although I have some conjecture on what’s the best thing we can do. So I would encourage that. And thanks for giving me an extra minute. And the last thing is if you go to the website themorganreport.com and get on the free list as I suggest, if you go to the about page, you’ll see my cv. This is not about me. It’s the message, not the messenger. But if you scroll down, there is a documentary called the Four Horsemen film. I’m in it. It’s not about me being in it.

It’s much more notable and well known stalwarts in the financial system than myself. But it is a good review of where we are in this banking system and what it means. It’s basically the end of the Age of Empire is what the film is really all about and how it’s a cyclical process and how we have to get there through a process. We are in the process of deleveraging and getting back to reality. And so if you’ve watched the film I’d encourage you to watch it again. If you’ve never seen it, it’s free on YouTube. I encourage you to watch it.

And perhaps if you haven’t seen it, I would ask you politely to watch it. Maybe you’d like to go over a few of those points if we have. If you give me the honor coming back on Canadian Prepper again. Yeah, absolutely. Check it out. Sounds like it’s right up my alley. I always like interviewing economists because you guys are very apolitical and you tend to just focus on the facts. So yeah, guys, go check that out. I will post a link to the documentary in the description below. Thanks for coming out. I gotta go check out the markets here because things are pretty wild today by the looks of things.

The dow still down 1.6% but who knows by the time we release this video tomorrow what the situation is going to look like. Thanks a lot for coming on, Dave. I appreciate it. My pleasure. Thank you. The best way to support this channel is to support yourself by gearing up@canadianpreparedness.com where you’ll find high quality, quality survival gear at the best prices. No junk and no gimmicks. Use discount code prepping gear for 10% off. Don’t forget the strong survive but the prepared thrive. Stay safe.
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