David Morgan on Silver

David Morgan is a precious metals analyst and educator who has earned the nickname "The Silver Guru" through decades of focused research and accurate market analysis. He publishes The Morgan Report, a subscription newsletter that provides in-depth analysis of silver, gold, and mining stocks.

Morgan's journey into precious metals began in the 1990s when he recognized the disconnect between fiat currency creation and real economic growth. His educational background in engineering gives him an analytical approach that sets him apart from many market commentators.

Unlike some silver analysts who focus primarily on short-term price movements, Morgan emphasizes fundamental analysis - studying supply and demand dynamics, monetary policy, and the role of silver in the global financial system.

Morgan's analytical framework combines fundamental analysis with an understanding of monetary history. He believes that understanding why silver is money is essential to understanding where prices are headed.

Supply and Demand Analysis

Morgan closely tracks silver supply from mining and recycling against demand from industrial uses, investment, and jewelry. He notes that silver is unique among precious metals because roughly 50% of annual production is consumed by industry, unlike gold which is primarily hoarded.

The Monetary Case

A central theme in Morgan's work is silver's historical role as money. He argues that silver has been money for thousands of years and that the current fiat experiment is historically anomalous and ultimately unsustainable.

"Silver has been money for 5,000 years. The dollar has been fiat for 50 years. Which do you trust with your purchasing power?"

Gold-to-Silver Ratio

Morgan frequently references the gold-to-silver ratio, currently around 80:1. He notes that historically this ratio averaged around 15:1, reflecting the natural occurrence of silver relative to gold in the earth's crust. He sees the current high ratio as evidence that silver is dramatically undervalued.

Technical Analysis

While primarily a fundamentals analyst, Morgan also incorporates technical analysis to identify entry and exit points. He uses moving averages, support and resistance levels, and momentum indicators to refine his investment timing.

David Morgan is a sought-after guest for his calm, educational approach to explaining complex market dynamics. He appears regularly on financial media and precious metals podcasts.

Morgan advocates for a balanced approach to precious metals investing:

• Physical Metal First: Own physical silver as the foundation of your precious metals holdings. This is your insurance, not your speculation.
• Mining Stocks for Leverage: Carefully selected mining stocks can provide leverage to rising metal prices, but they also carry company-specific risks.
• Long-Term Perspective: Precious metals markets move in long cycles. Patience is essential for success.
• Education First: Understand what you own and why you own it. Emotional investing leads to poor decisions.
• Diversification Within Metals: Own both gold and silver, along with a mix of physical metal and mining equities.