“If you really have conviction for this sector, Then you have to review—have the fundamentals changed? And if the fundamentals haven’t changed, that’s a good reason to stay. Another reason to stay, is that the best time to buy is when nobody wants it. We’re certainly in the case right now in the mining shares, where really—nobody wants them. So that’s a great time.
In all [bull] markets…there gets to be an acceleration point, where it becomes the ‘got to have’ investment…and once that happens you get an acceleration in price to the upside, and I really expect that to happen in the metals. It’s not here, it’s not now—but I’m very confident it will take place.”
Submitted by Tekoa da Silva, Bull Market Thinking:
I had the chance to reconnect this week with David Morgan, publisher of The Morgan Report. It was a fascinating conversation, as David began studying the silver market at age nine and has since become known as, “The Silver Guru”.
During the interview, David spoke towards first-hand observations made during the 70′s metals bull market, and the conviction it takes to remain positioned while most others have thrown in the towel. Those with a clear understanding of the fundamentals according to David, are most able to participate in the ultimate market “acceleration point”.
Commenting on the short-term technical picture, David noted that, “They [the miners] are so low right now…I don’t know if the bottom is in or not, but it sure looks like it to me. As far as the metals go, I’m pretty sure that the key reversal on the 28th of June was it. But again, time will tell.”
Reflecting on the mid-market shake-out during the 70′s, David said, “I recall during the first bull market that we saw gold from it’s official fixed price unleashed in 71′, move all the way up to $200 oz over time…and then it sold-off substantially…to $100 oz. I remember the gnashing of teeth, people couldn’t believe that gold had been to $200, when it was now at $100 oz. A lot of people gave up, and it took some time to work back to $200 oz.”
Following that recovery to $200 oz., David indicated that, “People [argued]–’Well it’s a double top’–but then it went from the $200 oz mark to $850 oz.”
“If you really have conviction for this sector,” David explained, “[Then] you have to review—have the fundamentals changed? And if the fundamentals haven’t changed, that’s a good reason to stay. Another reason to stay, is that the best time to buy is when nobody wants it. We’re certainly in the case right now in the mining shares, where really—nobody wants them. So that’s a great time.“
As a final comment based on over 40 years of investing in the silver market, David said, “[In] all markets…there gets to be an acceleration point, where it becomes the ‘got to have’ investment…and once that happens you get an acceleration in price to the upside, and I really expect that to happen in the metals. It’s not here, it’s not now—but I’m very confident it will take place.”
——
This was a powerful interview with one of the world’s most experienced silver investors. It is required listening for serious investors and market students.
To listen to the interview, left click the following link and/or right click and “save target as” or “save link as” to to your desktop:
>>Interview with David Morgan (MP3)