David Morgan: Silver Juniors Will Provide Huge Leverage
David contrasts today’s market with that of the bull market of the 1970s. Back then the coinage had just separated from the silver standard to today’s fiat standard. People at that time understood this would lead to problems. However, few recognize this fact today. He says, “From a value investor perspective, you need to consider that on an inflation-adjusted basis; silver is cheaper than it has ever been.” This is due to the amount of money printing in the world today.
He cautions that market bottoms can be very difficult to time but is confident that we are now passed the bottom in the precious metals based on market sentiment.
He says, “If you can pick stocks correctly you can get some extreme leverage in this market.” There is still money to be made in this market if you know where to look.
David is sold on precious metals, but he also thinks there are excellent opportunities with oil and gas. Like everything, there is a time to be in certain markets and to be out of markets. Energy is something every investor should have exposure to in some degree. There is a gap in the energy needs of the world, and it’s going to have to come from somewhere.
Investing should enhance your life, it doesn’t have to be an obsession. The general idea is that many people over invest but most people aren’t willing to get the coaching. Sometimes the best trade you make is the one that you don’t make.
Time Stamp References:
1:30 – Comparison of today’s market to the ’70s.
3:45 – Difficulty calling bottoms.
5:00 – Bottom appears to be in.
6:30 – Inflation adjusted silver is dirt cheap.
8:00 – Careful stock picking can bring extreme leverage.
10:00 – Opportunities exist if you know where to look.
11:00 – Energy sector exposure is important.
14:20 – Markets correcting to real assets.
Talking Points From This Week’s Episode
• Most investors today are unaware of market risks.
• We are passed the market bottom.
• Opportunities still abound in precious metals.
• He recommends exposure to energy markets.
Seduced by silver at the tender age of 11, David Morgan started investing in the stock market while still a teenager. A precious metals aficionado armed with degrees in finance and economics as well as engineering, he created the Silver-Investor.com website and originated The Morgan Report, a monthly newsletter that covers economic news, the overall financial health of the global economy, currency problems ahead, and reasons for investing in precious metals. He is holding masterclasses on “The Coming Energy Boom” which you can find here. Also, he has a show on iTunes called The Morgan Report.