Silver Shortage? – David Morgan on SD Weekly Metals & Markets

(Before It's News)

SD WEEKLY METALS & MARKETS

Throughout 2015’s Severe Retail Investment Silver Shortage, Skeptics Claimed That Silver Itself Was In Abundant Supply & the Shortage Was Merely a Production Issue.  Is There In Fact A Massive Shortage of Physical Silver Metal Developing in the Market? 
Renowned Silver Expert David Morgan Joined the Show to Present the Cold, Hard Data.

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WEEKLY WRAP WRITE-UP By Eric Dubin

Salivating over the prospect of silver getting over $18 and gold over $1,300?  Not so fast, buster.  The guardians of all things fiat had other plans for uppity longs.   Even though a new, upside break-out signal wasn’t sent to paper traders, the paper accumulating COMEX spec longs continue to give the cartel trouble.  As Dave Kranzler noted earlier this week, “gold and silver are being bought on every manipulated hit” (click here).  Gold, in particular, has refused to surrender the mid $1,260 level, which has now become support.  This is significant.

For many weeks, it was clear the cartel was attempting to erase gold’s momentum move following the February 11th intraday spike high of $1,263.90  After gold exceeded that level in early March, gold’s price managers were gunning to push prices below the 50 day moving average.  They failed to break momentum, and now the low $1,260s area is serving as support and the cartel hasn’t even been able to get a test of the 50 day moving average precisely because traders and investors are buying the dips.  Even the old trick of aggressively attacking silver this week failed to derail gold to any material degree.

This Friday, we were treated to a surprisingly strong retail sales report, which helped to put a bid on the dollar.  At one point, the dollar DXY index touched the 50 day moving average at $94.85 and promptly turned south.  But the index cash settled up $0.42 for the day.  That’s a big move, and makes the reasonably strong recovery in gold all the more impressive.  As I noted earlier this week, I don’t think the DXY is going to get over 95.

The “currency wars canteen” has been passed to America and for the time being, rather than have China devalue the renminbi against the dollar, sending shock-waves into financial markets as happened last August and earlier this year, it appears that a general strategy of engineering a higher yen and euro versus the renminbi and dollar are coloring central banker policy coordination efforts, and this, combined with the obvious rollover in the US economy emboldens my conviction that any further upside to the DXY is a non-starter.

In fact, I think the DXY will rollover starting next week, and part of the reason why gold has refused to buckle is precisely the market understanding that the dollar is going much lower, even in the short-term.

DAVID MORGAN’S OUTLOOK

David Morgan is cautious given the significant advance precious metals have turned in through 2016.  He expects further upside for 2016 on balance, and that performance during subsequent years will be stellar.  But David believes there’s a significant possibility for a period of digesting gains already racked-up in 2016 – a summer doldrums.  Time will tell, but David is unreserved when it comes to the long-term picture for precious metals.  In David’s assessment, we are in the “end game,” in the third and final phase of a major precious metals bull market.

Yesterday, the World Gold Council released their 2015 bullion market estimates.  We took the opportunity to ask Morgan about where sufficient physical silver to affect price suppression has been sourced, and what the forward supply picture for silver looks like in his estimation.  Morgan believes silver produced as a byproduct of base metals production will remain under pressure if the global economy continues to stagnate.  Morgan also offered interesting insight into the small scale artisanal mining – “burro mining” – and scrap market analysis to help us understand silver supply and demand.

David Morgan’s new website is up and running, and he is expanding the frequency of complimentary reports in addition to his subscription service.  To check out The Morgan Report, click here.

WEEKEND LINKS:

• Gold And Silver Continue To Scaling The Wall Of Worry – Dave Kranzler
• China: The World Better Take Notice – Shadow Of Truth
• Gold Demand Up 21% In Q1 – World Gold Council
• Dollar Demise: Silver Moves To China – David Morgan
• Central Bankers Don’t Know What They’re Doing! – Mish Shedlock
• Noam Chomsky: Europe Bows To Its ‘Washington Masters’ On Everything From Snowden To Iran

Thank you for checking out this week’s show – Eric Dubin.

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