The Latest from David Morgan

David MorganDavid’s latest Silver Investor newsletter has just come out. Highlights:

“All financial markets, stocks, bonds, currencies, real estates, and even commodities, are in a state of fear right now. We just returned from the annual Vancouver Natural Resource Conference (the biggest retail gold show in the world) and can state factually that almost everyone we met was fearful that the precious metals were perhaps topping out and the shares of mining companies were in the doldrums. Rather than glee and an upbeat mood, we saw some long faces and uncertainty.

“During my workshop, I explained that all markets go through four phases of emotion:

  1. pessimism,
  2. skepticism,      <— we are here
  3. optimism, and finally
  4. euphoria.

“We went on to say that we are far from a top in the metals or mining shares. We are still in the skeptics phase, also known as the wall of worry. We must (and will) climb the wall of worry and at some point all of the current disheartened gold and silver bugs will rejoice as we enter the optimism phase.

“At that stage, many will take credit for knowing “all along” that they were smart investors and never really questioned themselves. This is human nature and we see it often. 

$2,000 gold“As a reminder, our general philosophy is an investment mentality looking out three to five years at a minimum. We forecast gold to reach at least $2000 per ounce and made that forecast in December 2000, a full seven years ago. This is our minimum target and we are about halfway there, and still the “believers” are skeptical. Gold could go as high as perhaps $4000 or more on a spike.

$100 Silver“Our long-standing prediction that silver will outperform gold and go to $100 per ounce also stands. 

“On a very short-term basis, gold and silver have not reversed to a downtrend yet. If we get a gold close three days (in a row) below $880.00 and we see silver close three days below $15.80, then we expect to see support areas tested. This is fully what we do think will happen, but until it does, we still remain in a high-level consolidation period. To break into a new high, look for silver to close over $16.44 and remain there for three full days.”

◊◊◊◊ As of today: Gold @ $887.50, Silver @ $16.51 ◊◊◊◊

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