THE SILVER BULL RUN HAS STARTED $30 COMING?

well if you're trying to catch the bottom on the summer market it was only a few months ago and this is a multi-year cycle so is it too late no not even close hi my name is georgia tucker with cambridge house today we are talking all things silver i have david morgan on the show publisher of themorganreport.com longtime silva bug and financial commentator we also have the ceo and founder of endeavor silver bradford cook endeavor are a mid-tier producer in mexico and their stock is doing fantastic so definitely worth taking a look bradford is you with over 40 years experience in the mining sector if you like this video and i hope you do please hit like and subscribe to our channel you can hear more from cambridge house by following us at cambridge on twitter and if you click the link in the pin comment below you can receive our weekly newsletter thank you and enjoy david and bradford such a pleasure to have you both chatting with me today about silver of course an extremely timely discussion um so let's kick it off right away uh silva has been very hot of course we just sort 24 usd uh silver that's up over five and a half dollars an ounce from this time last year david where does silva go from here well higher and it's a bull market so the bull is going to try to shake off as many investors as possible on the way to the ultimate top but definitely in a bull market and brad what do you think where is silva headed next well how do i trump uh david's comments uh obviously i'm also very bullish on silver i'm long silver through my own company and i'm also a bull i guess i would just caution people that this is a cycle it's going to be a great cycle it's the third leg of a typical three leg move a multi-generational move and cycles move in steps so three steps forward one step back uh you know when you get to the third leg sometimes it's ten steps forward one step back so watch it a little bit of caution there um so of course this psychological threshold of twenty dollars which we've just surpassed what do you think's gonna be the next benchmark david let's start with you well it's really hard to say i mean technically 26 is sort of the line that uh is absolutely important it was support after silver peaked at around 50 in uh early may 2011 it held 26 three times on the fourth time it went through i put out to all of my paid members my premium accounts that were going to break through 26. believe me i got some hedge fund managers that called me up and thanked me profusely because they hedged their positions and of course from that point till now uh you know we've been in a downtrend sideways cautionary market a lot of people gave up on silver and then all of a sudden people realize again how quickly it could move i mean i have another interview coming up and i told the host i really didn't want to talk about silver until it broke the 1950 level intraday on the uh continuous contract and he said okay fine and here it is about two weeks later and we're pushing toward 24. so again i'll apparent what brad said i think you got to be cautious but there is an adage that uh many have heard that follow me and that is 90 of the move comes in the last 10 percent of the time we are in the last 10 of the time and this is going to be 90 on the move or not remains to be determined but usually the third leg up is the longest in price and not necessarily longest in duration in fact it's usually fairly short in duration so if the market started in 2003 we're in 2020 that's 17 years let's say we've got another three years of this market then uh you know you can look at that if you say 17 years and take 10 percent of that that's 1.7 years so it could be as short as a year and a half and that may be it is it or isn't it the market knows more than me always and i always prefer the market itself market is very strong right now silver's outperforming gold about a three to one ratio which is the ratio i look for in other words when so when gold's up one percent silver's up three percent it goes up two percent silver's up six percent and that's only come georgia and brad as late so it's just early on uh you're not going to miss the move you get in here you might get shaken out if you're in uh leveraged positions but if you own it uh you're gonna be able to hold on to it excellent and back to that threshold question brad what do you think is 26 the next psychological benchmark or where do you place that uh well i thought it was 21 and we said goodbye to that a couple days ago um i'm thinking it's kind of this range right now 24 25. um again the the concept of uh you know two three four steps forward one step backwards i am expecting a pause here soon i just don't know when and it could be a very quick pause let's circle back to ratios david i know you've spoken about the gold silver ratio a lot at our conference historically we've seen between 80 to 60 to one at one point around 125 to one and we've seen the gap close significantly as of late does the ratio hold much weight well there's all kinds of controversy about it and there's a lot of oh even silver bulls but primarily neutral silver or more gold favorable people and then of course the general public that says it means nothing it does first it means how much silver it takes to buy an ounce of gold so that's a fact but no there's a lot to be said about the ratio any time it's been above 101 it's portended a very big problem in the financial system at large and it's also basically set off some rather spectacular moves in the silver market and since this is an all-time high over 5000 years it suggests that it's going to be an all-time high which is goes along with what i said about 90 percent of the move in the last two percent of the time i really think we'll take out the 50 nominal level remember 50 in 1980 is somewhere around 150 in today's dollars using the government's inflationary statistics so i think we have a long ways to go i don't want to be overly bullish i want to caution people but it just amazes me that you know how lacked luster my work was appreciated during these six seven years where it was time to accumulate what some of the smart money did and now that we're going toward 25 a lot of people are very anxious to get in but once it hits 30 there'll be more people anxious to get in and then it'll like any market ebb and flow want to go up and down but again this time i think is the big one i think this is going to be the um especially the gold leading away once you hit that 3 000 mark the bank of america keeps talking about a lot of people will wake up at that point and look at silver at maybe i don't know 30 at the time i don't know just giving you the idea 30 looks awfully cheap to 3 000 so you see more new buyers to silver that never even thought about purchasing to come into the market and where do you speculate the ratio could be by the end of the day by the end of the year that's too tough i'll pass on that but i'll answer it in a different way during the peak uh in may when we saw 50 silver in 2011 the ratio dropped to 35 to 1 since i expect silver to outperform gold even more than that on this last leg i would say you might see 20 to one you could see the classic ratio 15 to one in an extreme case you might even see 10 to one but i absolutely believe silver will outperform again this time and i still believe it'll be be below 40 to 1 but even 40 to 1 would be twice as effective as a gold purchase right now people really want to buy gold at a thousand dollar an ounce all they have to do is buy silver and when they buy silver and they want gold then when the ratio gets that 40 to one swap it into gold and now you've purchased your gold with a thousand dollars an ounce brad any comments from you about the gold to silver ratio yeah i think the ratio is a great indicator of where you are in the cycle and that run to 125 briefly during the march panic um i don't know how many people decided that was a time to load up on silver but my god what a generational indication um david and brad question for you both in a bull market silva has historically outperformed gold why does this happen and you think it will happen again let's start with you david silver is a smaller market so it doesn't take much buying so it doesn't take much new input to drive it much higher and this is what will happen especially with gold being in the headlines that will drive people to look at the silver market and a lot of them that can't afford gold to move into silver and brad what do you think well because over the last 100 years silver has evolved into much more of a strategic industrial metal and the vast majority of soil production has taken off marketing manufactured goods every year it doesn't leave any good you know good delivery silver available for investors when they reawaken to the value of silver as a monetary investment so every major cycle in solar has been driven by investors and every down cycle has been basically investors leaving the sector and so we're seeing the investor coming back to silver as a monetary metal and there's no metal for them that's exactly what david said it's a tiny market all the silver is being consumed and when investors want you know real coins real bars even the etfs have to buy real silver then there's no silver for them so the price has to go up david sprott silver just announced they intend to purchase a staggering 1.5 billion of physical silver what does this mean to your average investor well it means you're going to have a lot of support it's going to be like putting a put on a stock you're going to have a floor basically for the silver market that's my view time will tell if that's correct analysis or not but it certainly portends good things for silver bulls and i mean the future feels very uncertain for many investors the pandemic there's some social unrest in the u.s upcoming election volatile economy of course how should viewers be protecting that wealth well silver and gold have been proven to be assets that are not a liability so they're the only real financial or monetary assets that don't have a counterparty risk everything else in the market is basically on leverage all real estate usually has a mortgage behind it some is free and clear but most isn't same thing with an automobile loan so anything that's in a leveraged system where the credit cycle is coming to an end is in jeopardy and we're seeing that very much across the board so you're going to see a run to something that can be trusted and the metals have been trusted for over 5 000 years so the run though to trust to safety to peace of mind has just begun and as it accelerates will be more and more participants and so i think we're in a cycle that's going to as i said earlier in another interview go into the history record books on a financial washout that happens at the end of all the fiat cycles we're in a situation that's really going to move the metals as far as i'm concerned but silver has not generally been thought of as a safe haven at least in the mainstream due to its volatility has or will this change well it has historically it hasn't been since the brainwashing of the 1873 crime which means that they demonetized silver and bankers went to gold only a mono metallic standard but really a bi-metallic standard throughout history has been the best for everyone and silver's been money more often more places and traded more for goods and services than gold by far but yet the powers that be have re-educated the public to believe it's merely an industrial medal but actually that's an advantage as brad pointed out so once the idea that silver's a safe haven and maybe the ultimate safe haven for the little investor i think things will change rapidly in that psychology but what does that mean in the aggregate it means maybe three four five percent of the population the planet will realize that but since we only have point zero two percent of the entire financial system in the silver market right now to take it to point zero five percent is meaningful in other words a doubling of the amount of people that see silver for what it is both a monetary metal and an industrial strategic unbelievably essential must-have metal in modern times and technology so it's got two things going for it once the monetary demand takes it away from the industrial side they'll come in and buy it at any price because without silver they are out of business brad let's hand it over to you for a moment um your stock at endeavour has doubled this last month so congratulations for that um what would you say to new investors that felt like they may have missed the boat it's a little too late to invest in endeavor well if you're trying to catch the bottom on the summer market it was only a few months ago and this is a multi-year cycle so is it too late no not even close um it's specific to our company and one of the catalysts for the move in the last month uh was our announcement of the latest economics on our next development project our next mine called terranera in in mexico once teranaire is up and running it will actually be our largest and lowest cost mine and the economics are extremely robust at much lower prices than today so i think that was a real uh help to the stock stepping away from silva for just a moment um i've heard in interviews recently that you're anticipating the decline of purchasing power of usd so what does the future of currency look like in the us sad i mean if you look at the federal reserve board's own data they'll tell you that the 1913 dollar worth a hundred cents is worth about two right now so it's lost 98 percent of its value in a little over 100 years and their mandate is for a stable monetary system well if it's a stable monetary system a dollar in 1913 would be a dollar today and it's not so that's proof positive exactly how poorly they've held in their mandate so how much is left of that two cents i don't know is it going to blow away in the next week or two probably not is it going to absolute zero no no there'll be a new system it'll be a new brenton woods of some type of misusing that term because most people that listen to this interview understand what bretton woods is but they'll be some type of convention monetary crisis whatever and the nation states convene they come up with a new digital currency by sovereign states perhaps or whatever there will be a change in the monetary system that's inevitable crypto perhaps most likely it'll be digital based that's what we've heard from mark carney when he was uh president of the bank of england he no longer is but he spoke at the un he spoke at davos and he also spoke at jackson wyoming and all three places he indicated they wanted an unbacked digital currency controlled by the banks only using modern money theory in other words they can print till kingdom come and it's not going to hurt anything which of course is ludicrous but that's what they're shooting for according to him and he carries a lot of weight in the elite financial circles interesting well thank you for uh obliging me there let's talk about endeavor a little bit more specifically and david i will let you take over with some questions things investors should be asking when they do their due diligence on a silver company okay well brad we've been through this a few times so you already know the format before i ask the questions but i always start with kind of the basics because there's always new people especially now i mean people probably said oh my goodness silver and i want a silver mine and you know i get all kinds of people i mean there's the people that oh i only want the physical and i say to those people that only want the physical silver you know and i teach buy the physical first before you go into the mining companies but when you get the silver without a silver mine for crying out loud you know it's different it's like the analogy of a golden goose you know do you want to buy that one golden egg or do you want to buy the goose that lays the golden egg that's where you're looking in the correct mining companies you're looking at that goose that lays a golden egg or a silver egg again and again and again so having said all that let's just start at the beginning brad let me have a little bit about your background and your management team absolutely david and thanks for the opportunity i'm a geologist i've been in the mining business over 40 years my team's been together largely since the 2007-89 period and endeavor today is considered to be a mid-tier silver and gold producer that's all we produce we don't have any base metal production we own and operate three high-grade underground silver gold mines in mexico uh they're all geologically uh very similar and thanks to our exploration team we have one of the best organic growth profiles in the business with not one but two new discoveries in historic districts in mexico that we propose to build over the next three to four years to significantly grow our production and reduce our costs i'd already mentioned earlier that our next project the terra naira mine in jalisco state mexico we published now the final pre-feasibility study on it with uh fantastic returns at much lower metal prices i think it was a 138 million dollar uh net present value discounted at five percent after tax uh with a 30 internal rate of return after tax uh we're barely a two-year payback so it's a very attractive mine and that was i believe done at around 16 silver and 1600 gold plus or minus so in the far distant past in terms of the metal prices that's what's coming up for endeavor next now we hope to break ground on that project this year even though we're going to a full feasibility study which will take almost a year and about a half dollars uh because we're largely permitted for instance the mine and the plant sites are both permitted uh if we had the funding then we would go ahead and break ground on the long lead items so very exciting time for endeavor basically developing a new crop of mines to carry us through the next decade or two great let me just comment real briefly that this is my favorite model people i like a producer that has a lot of upside uh exploration potential and of course endeavor fits that as brad just told you what the projects are like i'm gonna go right to the finance side so i want to know the financial side how strong is the treasury how much is management owned do you have institutional support and what's the share structure look like so there's about 150 million shares out um we're trading at uh well north of five bucks today us and uh so that puts us into uh about 700 750 million dollar market cap uh cash at the end of march was 15 but it's almost double that at the end of june and um working cap is uh up in the kind of high 20s at the end of june that'll be up higher and obviously by the end of the end of march sorry uh working cap was 27 at the end of june we haven't published that yet but it will be a significant increase over over the first quarter so we're financially strong we don't have any long-term debt uh so a very strong balance sheet and because of our exposure only to gold and silver we have the best leverage in the business the five-year beta of our stock price the summer price is almost 1.7 which is a sector leading for the entire silver space very good institutional support and management what's management owned we estimate about thirty percent of the shares i held institutionally seventy percent retail management's about four but that includes our options so it doesn't sound like a big number but it's my largest uh single holding i guess going forward we're looking at a combination of debt and equity to build these mines we don't have any debt at this time so that would probably be the next thing for us is to look at a debt trunch for taranera very good so mexico i mean i want the the good the bad and the ugly meaning you know why mexico i know and you know but i want the audience to know why mexico and then also i get a lot of questions about well is it safe and you know a new well-known newsletter writer talked about mexico as being a potential failed state and all this stuff you've been there a long time i've been there many times i actually have a dwelling there uh condo and so i am pretty pro mexico but i want you to alleviate some of the fear and believing people this is uh more or less a brave new world there's not any certainty in life at all but can you go through why mexico and what you would respond to these uh naysayers about mexico we were attracted to mexico in 2003 because it's close to home you can get there in half a day direct flights um it's politically has been politically stable as a democratic system it's not a strongman empire and thanks to nafta actually 1994 and onwards we saw literally the creation of a middle class all the the related middle class infrastructure education social services health services so mexico really is so part of north america and it's got a fiscal regime that works i have to say that fiscal regime has gotten more expensive for us miners in the last eight years but it's pretty much on par with the rest of latin america in terms of the total tax load so those are all the the pros the cons obviously more recently we've had the emergence of uh far left socialist in power uh lopez obrador and uh so he's going to have to pay for his social programs somehow and this is in the middle of a covet pandemic uh we don't know how this is going to play out in mexico we've seen a sharp increase in security concerns thankfully in only specific corners of mexico it's not widespread and you know that was the case even in 2003 and we knew there was security hot spots when we went to mexico but they weren't anywhere close to our mines but think about it mining as an industry has largely most of their employees most of their activities in remote rural areas far from um gang activity far from government interference and as we just go about our business it's very important we have a social license with our local people and every place that we work and so we've made that core to our business plans since we arrived in mexico to build relationships locally and that's really your first line of defense not only against security problems and narco gangs but your first line of defense against meddling governments very good well brad we've actually covered i like to keep it simple we did the people the project and the financing and also the question i get the most which you did a great job on answering you know honestly the good and the bad so is there anything that we haven't talked about that you want our viewers or listeners to understand before we close out well i think specifically endeavors fallen into the trap of in the last two years being considered to a high cost producer and that was because we were still trying to mine the low-grade leftovers of our original discoveries david back and 0-405-6 iguana sevilla and bologna's discoveries we lived off of for now 15 years 16 years and the plan was to have a seamless transition out of those old bodies close those old mines and replace them with new mines at the same sites and we have discoveries at both guanasui and bologna that were in the permitting pipeline two three years ago but with delayed permitting we forced ourselves to live off this low-grade leftovers of the original ore bodies at lower and lower solar prices and it was really painful we started losing money so that that's what happened looking forward i think we're going to be the beneficiary our shareholders are going to be the beneficiary of a double whammy not only are we now looking at sharply rising metal prices uh but our costs are coming tumbling down wanna sweep turned the corner from being our worst performer last year our most expensive mine to being in the black in the first quarter and that was a four-quarter turnaround and we're now living off of new discoveries that going to see that have extended the my life for several years at much higher grades and much lower costs and that process is underway at bolonitos now so i just wanted to point out that we may have been briefly a high cost producer but we're definitely headed to the lowest quartile and you know terranera single-handedly doubles our production and enhance our costs so once we get the new mines up and running it's even better uh closing question for you both then just nice and simple i know we've gone over it plenty throughout the interview but if you could just reiterate in the simplest way you can why silver david let's start with you it's the best monetary medal of all recorded history it's the most undervalued asset of any asset class in the entire planet it's affordable for everyone and it's a very small market means it's extremely rare it's very scarce so you're buying something that's extremely rare and scarce but that one of the cheapest prices is ever held on an inflation-adjusted basis with nothing but upside more or less will it correct of course it will we'll pause and go up and down and scare people out of the market yes it will but for those that have the wherewithal to put some not all of their funds into a precious metal i would favor silver or gold again excellent and bradford you've dedicated your career to the metal why silver i'd like to give you three reasons to own silver in the portfolio david touched on the first one which is that silver is truly money uh it was the last metal used in common currency the serve the silver dollar the mexican peso the chinese currency the one and i think that uh it's come back with a bang without the appreciation of the investor for solar as a monetary metal is coming back to the bank and it's going to impact the solar price number two in the last hundred years slimmer has evolved as an industrial model and the vast majority of new mine silver every year disappears in um into manufactured goods no never to be seen again because it's too hard to recycle there's one ounce of silver that goes into a conventional internal combustion engine car for the for the electronic digit or digital circuitry it's not enough silver to scrap a car and recover the silver so it just disappears it leaves uh the world so to speak uh and yet the uses of silver continue to grow every year electronic off take rose 2 3 every year we've seen in the last 10 years the emergence of solar photovoltaic cells in fact that leads me to my third reason to own silver silver is a green metal you can't have solar power without silver you can't actually have an electric car without silver even though there's far more copper or lithium or cobalt in a in a electric car compared to silver silver is used on all the electronic contacts and there's twice as many electronic contacts in the electric car as there is an internal combustion car last year 55 million ounces was consumed by the automotive industry who knew that and if we believe any of the 10-year forecasts for the growth of the electric vehicle that number will triple where is that metal going to come from so three really good reasons to own silver silver is a monetary metal silver has an industrial metal silver is a green metal oh love it boiled down so nicely i feel very optimistic um well thank you guys both so much for chatting with us it's a very exciting time for silver david where can viewers follow along with you hear more from you just go to my main landing page themorgancourt.com i suggest you pull down the blog tab and read the blog or listen to the interviews that are posted on the blog and then uh the navigating bar at the top the blog page has icons for our twitter feed our linkedin our facebook and our youtube channel so if you want to follow any of those they're on the blog page at the top bar excellent thank you so much and bradford where can viewers learn more from endeavor well the fastest and easiest is our website edr silver.com excellent and can you share those ticker symbols with us so ticker symbol in canada is edr on the toronto stock exchange and in the us we're on the big board toronto in the us we're on the big board new york and the symbol is e-x-k excellent thank you so much well exciting for endeavor i look forward to seeing what the rest of summer brings and i thank you both so much wow you're fabulous thank you thank you thank you so much for watching my interview with david morgan and bradford cook of endeavor silver please hit like and subscribe to our channel for more from cambridge house you can follow us at cambridge on twitter and if you click the link in the pin comment below you can receive our weekly newsletter

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Keywords: THE SILVER BULL RUN HAS STARTED!, Silver Bull Run, Silver, Silver Price, Silver Investing, Physical Silver, Buy Silver, Silver Price Forecast, Gold Silver Ratio, Sprott Silver Purchase, Silver News, Endeavour Silver, David Morgan, Bradford Cooke, Asset Protection, Digital Currency, Investing, Investing In Silver, Investing In Precious Metals, Precious Metals, Gold, Silver Mining, Gold Mining, Purchasing Power, Mining For Silver In Mexico, Silver As An Investment, $30 Silver

Id: ykZ2jVuE0nE

Length: 30min 5sec (1805 seconds)

Published: Wed Jul 29 2020