Economist David Morgan of The Morgan Report is one of the world’s best known silver investors. In the following interview with Future Money Trends Morgan discusses his personal experiences during the last major run-up in gold, when it hit a price of $850 in early 1980. As Morgan describes it, there was significant panic buying during that time period, and should central banks and governments continue on their current course, we’ll see a similar endgame play out this time around:
What’s good for gold is the end of empire… And we’ve got governments that are failing… When these bond markets blow up further, that’s when you’re going to see a run to gold than we’ve already seen…
Wait until the physical market freezes up, which could happen. I am not saying it would happen, but it could. With the worldwide demand and a failing currency across the world, where do you think people are going to go? They’re going to go to precious metals which have been trusted for thousands of years.
If that were to occur, and I think it could happen… could you imagine the amount of money sitting on the sidelines in a panic mode that would go into the mining shares? It’s incredible.
I saw it once… I saw what happened with gold and silver when it was a panic buy… My commodities broker was a woman. She worked for Dean Witter… She was very savvy… She would leave her office at lunchtime and go and buy gold at the local coin dealer… then after she closed her office she would stand outside her front door and sell gold coins to people who were lined up… believe it or not.
That’s the kind of frenzy you get at the top of the gold market.
In this must-watch interview David Morgan discusses long-term trends, short-term manipulation, market corrections, potential price points, the economy, and monetary machinations that could lead to widespread panic gold buying in the near future:
This market has done something similar [to 1980]… The upside is indeterminable… The reason you can say you can’t determine a paper price is we don’t know what’s going to happen to the fiat currency system… and depending on what takes place it may be meaningless to put a number on it… I’ll go along with Jim Rickards and the others saying $10,000… I’ll stay conservative and say $5,000…
This is not balance… this is not normal… this is abnormal… and nature hates imbalance and we are very, very imbalanced in almost any perspective. From the micro perspective of a single household to the macro perspective of a nation state…there is a day of reckoning and I think it’s coming sooner than later.
When that day of reckoning comes we could well see a major monetary event that leads to massive panic buying of precious metals. And if the general population is panic buying gold and silver, be ready for anything, because the system as we know it has likely come unhinged.
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