David Morgan, the Silver Guru is interviewed on Reluctant Preppers. David gives his thoughts on the financial turmoil today. He starts with a quote from Elliot Greenway who said “the next depression will make the depression in the 1930’s look like a market correction.”
This depression will be definitely different. Once we get out of this things will be definitely different we are not going back to the way things were before the Corona Virus.
David was asked if there are similarities between today and 2008. David feels the market will continue to go down. In 2008 we didn’t have shutdowns. Mexico is shutdown, Agentina is shut down, and many other mining countries are also shut.
Producers with proven deposits in the ground have an asset whose value that only increases in value as the price of precious metals goes up. Usually only top tier companies have proven assets. Big miners have to buy up proven deposits to insure that they have something to mine in the future.
However most probably some smaller companies who are in the beginning of the mining process of just looking for precious metals will go out of business.
David says of the mining stocks, “When in Doubt Stay Out.”
Gold only serves a purpose as money whereas silver also has many industrial uses. It is likely that this pandemic may give a bump to the solar industry. Of course solar panels use silver. Greater demand and smaller supply should result in higher prices.
David was asked about what should you do if your pension is in the stock market.
Hedge yourself by buying a put on the market outside your account.
Only you can decide whether it is time to case out of your pension.
50% of your assets should be in gold and the other 50% in cash.
David believes the stock market will continue in a downtrend for the next 5-10 years.
Will services we depend upon like the mail and other companies in the supply chain affect the services we have come to depend upon? David said basiclly no one knows because alot depends upon how long this lasts.
David’s final word was a suggestion to think deeply about what is most important in your life which should probably be the importance of your relationships with other people.
What is your life’s purpose and how best for you to achieve it. We all have some time to consider these larger issues.
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