Why you can’t buy silver right now; return of ‘Hunt Brothers’ scenario? David Morgan

david morgan of the morgan report is here to talk about silver today david retail investors can't even buy silver bars and coins right now the physical demand right now is so high there's no supply what's going on well you already uh answered your own question david yeah there's so much demand that it can't be filled and uh you know it's going to be back ordered it'll make me rephrase my question why is there so much to man right now well it's a combination of things but primarily it says wall street's bet group that proved that if there's enough buying power they could take out these short sellers nothing has been sold short stronger and longer than the silver market so somebody in that group or somebody's in that group yeah it's my understanding said hey let's get to the silver market what's interesting about the silver market is it's not a stock so you don't need a brokerage account all you need to do is phone up kit kill and place an order so there's no you know double checking or waiting you know a week for your paperwork to clear and you can have an account just crawl up and say i want to buy some silver when they call up and say want to buy some silver say that's fine it's going to be you know i don't know what it is i won't misquote you david but co may say four weeks six weeks eight weeks i don't know we've seen this before it happened in the uh in the 2008 financial crisis silver hit about nine bucks and we're paying about 13 it was like a 30 premium on most silver retail products but it was a silver retail product shortage not a silver shortage the silver market is quoted on commercial borrowers we're not short of commercial bars yet but there was such a demand for commercial bars for big investors because they look at uh thousand ounce bars the way you know big investors look at 100 ounce bars it's just a bar of silver i'm going to buy this many of them was over like 300 million in the slv last year this is unprecedented there's nothing been nearly that much investment demand for commercial bars ever that i know of and so now we're seeing this wall streets group reddit all the chat rooms i mean basically the silver markets on fire in social media people that were never aware of it or given up on it or never thought about it and so you got this kind of adjunct group david this group of people that got burned in the 2008 financial crisis got hurt in uh the stock market crash they lost their pension they got kicked out of their house and now they see a way to buy silver and kind of get even if you might think of it by buying something that's real and uh it's easy to do so there's a huge demand right now how long will it last and how probably will no no one knows right now here's what i don't understand this the short squeeze and silver didn't start the day it started a few weeks sorry a few days ago and of course today is sort of an escalation of what's already been happening but if you if you make parallels to gme the stock gamestop amc you know if if we're making the assumption it's the same crowd of people the wall street bettors pushing it up well those stocks went up 10 times more than that 10 20 times in a matter of a week silver didn't move nearly as much in fact today as we speak right now since the 6 pm eastern time open it's only up about what two bucks so i i don't know if you made that assumption you'd be disappointed at silver's price right now are you surprised that it didn't move up anymore not at all i mean i spoke with someone that was uh intimate with the hunt brothers he called me i've known him for years we don't chat that often and he asked me what i thought about all this and we both agreed that you know i believe and could prove and wrote in the book the silver manifesto all markets are manipulated but silver probably more than any other and uh we agreed on this phone conversation that you know you're going against some pretty tough people when you're going against the professionals on wall street they're short stocks but when you're going against the master manipulators of all time which is the silver shorts you're up against the greatest sharks out there doesn't mean it can't be done the hunts proved it can be done all they did was buy physical and futures i don't mean to interrupt you but who are these greatest sharks out there well we don't know exactly it's basically the plunge protection team you could look at the work that gad has done which would probably do you know more deep diving than i can do off the top of my head but it's basically the working group of financial markets it's the head of the sec the cme the cftc the and all these you know entities and most of them are doing a job that their job description would be to protect us but really it is to not protect us is to protect the big money interests of wall street not the investing public so that's been turned around by this wall street bets group and people are starting to wake up and see it's not just the precious metals that have been suppressed like this it's basically almost anything you want to name gme being a prime example david i asked this to a few other guests already i'd like to get your opinion what if we had to push silver the futures market up 10 20 times like gamestop and amc what needs to happen on the demand side how much more volume do we need to see in the market right now no one knows i would say if we doubled what we saw last year so in other words first of all no one sells you can't have anything selling pressure what whatever okay so everyone that owns it now is waiting for delivery holds now on top of that if you got somewhere in the 250 to 350 million ounces what we saw building the slv last year and no one's selling at the same time i think that'd be enough i think the market's that tight obviously the retail market's that tight how tight is it in the silver market the silver commercial bar market right now all the bullion banks only have about 150 million ounces that's in the register category so if we double that to 300 million they take everything off of the what they own in their name you know so i think that probably enough it's pretty small amount but what will happen i mean we've already had a precursor several times david we saw what happened to hunt brothers who changed the rules the rules already exist on the comex that you can only take 1500 contracts in any delivery month which is only 7.5 million ounces of silver now craig hempke's done some good work there drilled down because there have been delivery months that have gone over that amount the last thing that comex wants to do is default but by their rule book they never can because by their rule book they'll just say look it says in the face of a forced major you have to settle in cash we settled in cash we did not renege on the contract that's the paper game you're playing ultimately in the paper game if it gets to the point of no return they'll give you paper for paper but they won't be able to deliver silver that's what we're shooting for if that were to happen i'll just finish quickly you'll go to a cash market i mean we used to have a milk on the futures exchange eggs on the futures exchange we have a milk and egg market today it's a cash market it's a free market more or less that you just you need the eggs you need the milk what are you going to buy today you're going to pay this amount okay deal done the retail market that's pushing the stocks or the price up now this market are they are they moving into the paper market the futures or are they moving into the physicals because there there is a difference here what do you think is going on absolutely a difference going across the board the big money is going the slv there was like i think it was like 35 million ounces friday that's a lot that's one tenth of what took place all year last year in one day and last year's 300 350 million ounces i don't know the exact numbers the silver studies aren't out yet but the silver institute kind of leaked the number so i'm using their number so that's unprecedented i mean just think of that went 10 days in a row david you'd be looking at the highest amount of silver deliveries ever last year 2020 with some clear vision in the silver market taking place again this year which i think looks like it's possible now you've got a problem you're not going to be able to make good on all that silver in physical form in derivative form it's unlimited you can make as much paper silver as you want as long as people are satisfied with paper silver the game could continue on indefinitely okay now here's what i'm wondering uh right now there's a lot of demand brokers bullion dealers are unable to satisfy the their demand their inventory is just not there i wonder if what we're seeing right now 2909 is the latest reading the latest price i have on my screen i wonder if that's the fair value of silver right now assuming that there's no demand physical sorry assuming there's no physical supply in dealers inventory yeah it's a great question i'll give you my answer remember i'm a bit biased i'm really pro you know precious metals but what will happen if this continues on for you know weeks is that commercial bars will be turned into physical rounds or other products for example here's an example for me myself and i that's a half ounce silver round that i had minted by a mint for myself my old website before themorganreport.com that's nine dollar silver i bought commercial bars off the exchange shipped it to my mint master friend he turned men around and it cost me about 50 60 cents for each one of those but you know i paid what 10 bucks an ounce instead of 13 at the time so that's what will happen if the demand stays there if uh so really it comes down to my thinking if there's conviction behind this market or are we just looking to run the stops the other way are we looking to take care of the shorts and teach them a lesson or are we in this for the long haul with conviction okay well price action right now as of 6 52 p.m it's gone down actually so is that 29 bucks now it's at 2 28 so it just went down 90 cents since we spoke uh two minutes ago so uh there's a lot of volatility up and down it looks like it's on the downside right now is 30 the resistance level do you think yeah there was a lot of silver after the peak in 2011 that hit about 50. and there was a lot of silver traded around the 30 range for about a year oh so there's a lot of people that are stale longs are called this is from 2012 and when silver gets back to 30 they're willing sellers it's like their wives have been on their back why'd you ever buy silver at 30 well it's never going to get back there oh wait a minute it is back at 30. i'm going to sell it you know so there will be some overhead resistance i don't think it'll last that long it could go a week it could go a month i don't know the market knows but i don't think there's a lot of people at that level right now that are you know on the internet that are going to want to sell even if they are just breaking even because any buying pressure beyond 30 there's not much upside resistance which means any new buying pressure even if it's small will drive the price higher problem is there's so many derivatives in the in the silver industry there's so much so many ways to take an ounce of silver and divide it and fractionalize it and hypothecate it and re-hypothecate it and a lot of people that own silver and got these pretty certificates and have had it in a warehouse forever and i'm going to say a warehouse i think all the comex is there but some other let's say uh other places and they're safe and secure and all they really have is a paper certificate they really don't own the silver and unfortunately silver's in size can be bulky relative to gold so you have a lot of let's say paper silver that really doesn't exist yeah physically and that's a shame because we really want an honest market across the board in all markets not just the silver market stock market you know commodities market the housing market any market we want fairness okay david um you know right before we were speaking i'll tell you what i was doing i was playing online chess with my friends okay and then i got i then i wanted to call with them i said look i got to stop this game i got to go to work and talk about silver because silver market's about to blow up this was a couple hours ago and they're like really what's happening should i buy silver should i buy silver i don't have an answer to that guys i'm going to ask the experts i'm going to ask them if we should be buying silver right now i'm gonna wait for the price to open at six o'clock and then i'll let you know so what's the answer should they be buying silver right now at these levels yeah i think it's okay i would say you know it depends what happens to the future no one knows i've studied monetary history as much as a lot of people more than most and i'd say anything 30 or under you're probably safe long term i'd say very long term probably under 50. once the monetary reset takes place and no one knows exactly how that's going to look i think the pre precious metals will be revalued if you look at jim rickards which is a pretty strong thinker in this area he did a interview recently and quoted i think fifteen thousand dollar gold so i mean if you gave one the 15 to one monetary ratio they'll give you a thousand dollar silver i'm not saying it's going to the monetary ratio but i'm just suggesting that if you had 15 000 gold and he says that over and over i'm not i'm not even agreeing with him but his math is correct then you can think about where was silver be and he doesn't say fifteen thousands you know out a hundred years he's talking about you know fairly near term well i guess my friends are kind of worried about their short-term um short-term price movement we saw you saw what happened with uh gamestop and amc it kind of hit a resistance level well they both hit some sort of resistance and i wonder if the same thing could happen to silver you know once we've we've seen this action right now uh what's the next step in the next um uh what makes sense to you is is what i'm well that's hard i mean i wish i knew i'd love to know i mean i got an order in myself and my dealer called me goes it might jump three bucks i was thinking it could hit 30 on the open you know go from 27 whatever it closed and bang it's up two or three bucks i said i'll put a limit 30 if it's over 30 i want to buy it but what could happen is the commodities market trades a lot different than the stock market and so the ability to take on these shorts even though it's more heavily shorted than the stock market you know the i think his gamestop was 140 percent and the reason it's over 100 is you can have options so it can make it more 100 silver is way beyond that but how many people are going to take those thousand ounce bars off the exchange and really force the issue and the answer is to be determined we don't know the retail market could make it happen as i said earlier if that conviction but they're going to have to wait for those thousand ounce bars to be turned into retail product okay uh final question now you talked about silver being the achilles heel of the financial system way back 2012. what is that all about what do you mean by that well you know the old adage he who owns the gold makes the rules and for the large part of the the old financial system and probably something to do with the new one gold is going to play a part but central banks own most the gold or more than 50 there's no real central bank exposure to silver truly is the people's money so if you believe what i believe that money is power and money is control and you want to have control of your life especially your financial life you would dive into the silver market because that's the people's money and you have control of the banks don't so you actually could overpower the banking system with the achilles heel the fact that they don't have silver as a monetary asset the people vote with their fiat and say yes it is and all of a sudden they've turned the tables on the financial system so kind of an interesting video you might look at my uh type it into i guess youtube david morgan silver's the achilles heel the financial system why else can people go to follow your work david just morganreport.com get on our free list i'll be making a video every day this week i've committed to kind of get us through this first week see what really happens if it's a bunch of hot air or it's the real deal i'm not sure yet but it looks like it's real well i bet either way i'll bet you'll have a very busy week i appreciate you uh i know you have a very busy evening with your phone blowing up so i appreciate you giving me your time tonight thank you for coming on david it's fun with you thank you all right we'll talk again soon i'm sure david lynn reporting for kicko news stay tuned for more updates you

Channel: Kitco NEWS

Views: 376,161

Keywords: gold, silver, finance, news, investing, investing news, finance news, financial news, economy, precious metals, gold price, silver price, gold price today

Id: V0hUYCVIl34

Length: 16min 36sec (996 seconds)

Published: Mon Feb 01 2021