Precious metals expert and financial writer David Morgan says silver is still 65% off its all-time high and is a much better value than gold. Morgan points out, “Relative to all asset classes, I can’t think of one that is more undervalued than silver. If you look at every asset in the metals world, meaning base metals . . . anything to do with the periodic chart, every one of them has obtained a higher price level than it was in 1980 except silver.”
The biggest problem out there is the virus chaos going on in China that is nowhere near solved and getting worse by the day. Morgan says, “Sooner or later, the reality is going to hit the stock market. I don’t care how much funny money they use to pump it up. When you don’t get goods on the dock that you can distribute, something has got to give. This is taking place as we speak. It will only, in my view, get worse. Nobody really knows the impact at this time exactly, but we know the trend, and the trend is exponential. One person can infect two, two goes to four, four goes to eight, eight goes to 16 and it’s exponential. This means until this thing burns itself out one way or another, we’ve probably got worse days than better days for a while.”
How global powers are dealing with the financial fallout is to simply print money to paper over the problem. That’s not going to work forever. According to Morgan, “Basically, it all gets down to something very simple. Print, print, print until people stop accepting it as valuable and realize whenever you have a lot of anything. its value decreases. This is what we are facing. In the interim, you could see the dollar do quite well because of this foreign exchange swap problem. You need dollars because you need to settle debts, and your yuan is not worth as much because people are afraid and you have a foreign exchange sway putting pressure on one side or the other. . . . The bottom line is pretty simple. It’s all based on trust. The banks do not trust each other for overnight loans. . . . Fed Head Powell has come out and said the coronavirus is something they are going to handle, means the Fed is going to come out and flood the market with funny money.”
Which is yet another reason to buy hard assets like silver and gold. Morgan asks the question every investor should be asking, “The markets hate uncertainty, and with all this uncertainty out there, how long can this last?”
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Greg is the producer and creator of USAWatchdog.com. The site’s slogan is “analyzing the news to give you a clear picture of what’s really going on.” The site will keep an eye on the government, your financial interests and cut through the media spin. USAWatchdog.com is neither Democrat nor Republican, Liberal or Conservative. Before creating and producing the site, Greg spent nearly 9 years as a network and investigative correspondent. He worked for ABC News and Good Morning America for nearly 6 years. Most recently, Greg worked for CNN for shows such as Paula Zahn Now, American Morning and various CNN business shows.