The Morgan Report Blog

Do You Have a Gold and Silver “Seat Belt”?

Do You Have a Gold and Silver “Seat Belt”?
By David H. Smith, www.MoneyMetals.com

In just about every state, it’s the law that you must wear a seatbelt when driving down the road. Putting aside the question of whether the government should mandate this, most of us understand that the reasons for individually choosing to do so are valid.

It’s been a long time since I’ve been in an accident, but it’s a habit to buckle up every time I get into the car. I don’t look back at my most recent trip and think “Gee, so far nothing has happened. So why did I bother wearing my seatbelt for all those years?”

Take a quick look at our financial system. Have things really improved since the entire global system almost went down in 2008?

Sure there have been “changes” – for example, your bank most likely has a “bail in” provision added to the fine print of your accounts, letting you know that if they go under due to their own mismanagement, you may be forced to help out with some of your hard-earned funds.

Image1And try to withdraw a significant amount of money during a financial crisis – odds are you’ll be informed that you can only take out a relatively small amount per week, and oh, by the way “How do you plan to use that withdrawn money?”

Money market funds and “savings” accounts now pay virtually no interest, but (so far) that’s at least better than in some European countries, where hapless account holders actually have to pay the bank for the privilege of leaving money in their account.

Massive government debt.

Underfunded pension plans.

Trillions of dollars in artificial derivative trading vehicles created by over-leveraged banks, backstopped by Federal government printing of unlimited amounts of paper money.

“Official” statistics which are constantly “revised” a month or so after they have been released to the public.

Published inflation rates which don’t include most of the things we use and do on a daily basis. The list goes on and on.

Illuminating Experiences on My Recent Trip
to the “Land of Silver”

Last month, I spent two weeks in Argentina fly fishing for monster Rainbows in Jurassic Lake, and Brown Trout – what the locals call Sea Trout – in Tierra del Fuego’s Rio Grande. In Buenos Aires, Calafate, Ushuaia, and with my fishing guides, I had some interesting – and illuminating experiences, when comparing the response to sound money (silver) with that of a paper promise (pesos).

I took along a tube of one-tenth ounce .999 fine silver bullion rounds courtesy of Money Metals Exchange, and from time to time, I handed them out to taxi drivers, waitresses, airline stewardesses and fishing guides.

Speaking in my limited Spanish, I would tell them, “Para usted, esta es la décima parte de la onza de plata pura.”Which means, “For you, this is one-tenth of an ounce of pure silver.

Without exception, the look on their faces was amazing.

Without discussion, after realizing what they were holding – and rubbing the bullion coin between their fingers – their eyes lit up, they smiled, and thanked me profusely. All of this for just one-tenth of an ounce of silver!

Ironically, Argentina means “silver/coins” in Latin. In Spanish, it translates as “silvery.” In a common border with Uruguay, the massive river flowing alongside the capital’s doorstep is called the Rio de la Plata – “river of silver.”


You Must Own Gold and Silver
When the Currency Is Being Debased

Several times during the last few decades, Argentina has experienced runaway inflation, to the extent that the currency became virtually worthless, impoverishing millions of people. In some cases, family fortunes generations in the making, were destroyed.

I have often thought of what it might have meant to a middle-class family, if they had possessed only a few ounces of gold, or perhaps a tube or two of one-ounce silver rounds. In some measure, they would have been protected, as millions of people have, over thousands of years been, when financial unrest became the norm. It has always been thus when paper money’s value eventually accelerates into a downhill run towards its intrinsic value – ZERO.

“La décima parte de la onza de plata pura.”

“La décima parte de la onza de plata pura.”

Sadly, the ruling elites seem to have learned little from the fiscal mismanagement of their predecessors. When I first traveled to Argentina in 2009, the exchange rate was 3:1 – three pesos for one U.S. dollar. Now, just 6 years later, the official rate is 8.5:1 – but street-side in the “blue market” you can get 12-15:1.

Inflation runs 25 – 30% per year. At a restaurant, you are asked not to post a tip on your charge card, but instead remit cash. Offer a $50 bill for a $20 tab, and the receiver wants to hand you pesos, rather than dollars. Hapless touristas – myself included – are charged the official exchange on a purchase, which is half the “blue” rate.

Exchanging some of your “paper promises” (currency) for the physical financial reality of gold and silver on a regular basis makes more than just good business sense. It helps make sure that come what may in your financial life, your “financial insurance policy” will be there to help you out, when, not if, the chickens from so many years of unsound government policies come home to roost. Look toward Argentina, Venezuela, Russia and others as harbingers. Even now, the U.S. inflation rate is arguably several percent higher than the “official” figure. You would do well to pay attention and plan accordingly.

Simon Black, in his newsletter discussing the virtues of international diversification, recently wrote:

Safeguarding a portion of your savings by moving it outside of the system (not just holding everything in banking or traditional retirement accounts) is like wearing a seatbelt. There’s no downside. But if the worst happens, it could save your life. Or at least your livelihood.

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davidsmithDavid Smith David Smith is Senior Analyst for TheMorganReport.com and is a regular contributor to Money Metals Exchange. For the last 15 years, he has investigated precious metals mines and exploration sites all over Argentina, Chile, Mexico, China, Canada, and the U.S. and shared his findings and investment wisdom with readers, radio listeners, and audiences at North American investment conferences.

 

David Morgan is a precious metals aficionado armed with degrees in finance and economics as well as engineering, he created the Silver-Investor.com website and originated The Morgan Report, a monthly that covers economic news, overall financial health of the global economy, currency problems, and the key reasons for investing in precious metals.

As publisher of The Morgan Report, he has appeared on CNBC, Fox Business, and BNN in Canada. He has been interviewed by The Wall Street Journal, Futures Magazine, The Gold Report and numerous other publications. If there is only one thing to teach you about this silver bull market it is this… 90% of the move comes in the last 10% of the time! Where will you be when this happens?

 

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His Secret To Day Trading Gold

 
It does not matter what your specialty is for trading is we all have our own little trading secrets to help use better time our trades. While many day traders focus on individual stocks like aapl, goog, tsla etc… I like to focus on day trading gold.

Years ago I shared this little secret on how I get an edge day trading gold and it still amazes me how many of those people still use it today, including myself.

Time and time again gold traders are given great insight on how and when to day trade gold. I use the free 24hour Kitco gold chart which is shown below, and I watch it like a hawk.

It is easy to get a feel for how gold moves each day with this chart. Once you get a feel for it and see price patterns repeat themselves week after week, these opportunities quickly become an easy way to add a few trades to your day trading routine.

This Kitco day trading gold chart is an amazing tool for observing the price of gold over a 3 day time frame. What I’m going to show you is how it can provide opportunities for day trading gold.

While this chart may not look like a quality trading tool it does provides very detailed information for daytrading gold and for swing traders as they get ready to enter or exit positions. Looking at the chart below you will notice that price has similar price patterns and turning times throughout the day. Often enough the movements are very similar allowing us to take advantage of these price patterns to day trade precious metals, silver included.

Free Day Trading Gold Charts – By Kitco

Close Up Of Spot Gold Chart

The chart below is regular trading hours only 9:30am – 4:00pm ET. You can see the price action following the previous day’s movements. Blue is the previous trading day and Green is the Current day.

When there are large price movements in gold during these hours I like to take advantage of them using the previous days price action as my guide. If you didn’t notice the Green line (Today) makes the move before the previous days move. Why? Looks to me like there are a lot of other traders out there like me getting ready for these opportunities and because its human nature to want to be first they cause the moves to happen slightly sooner than the previous day. You should factor this into your trading and be ready to take action when price looks to be starting a predicted move.

Intraday Trading Gold Chart via GLD

The chart below shows the last 4 intraday sessions for gold using the GLD ETF. As you can see these sessions had very similar price movement. This is a 5 minute chart of gold using GLD. I trade it using the 3 minute chart as it allows the best timing for entering and exiting positions and this 5 minute chart keeps my head clear for the key turning points because it is easy to get caught up in the one minute chart noise and miss the important patterns.

If you prefer trading spot golc via FOREX/CDF/Spread Betting and you are not a US resident you can use the firm which I have been using for nearly 8 years and the broker is AVAFX. The nice thing about trading this way is that you can trade 24/7, you get a lot of leverage, its commission free trading, and they have 100% signup bonuses to match the amount you deposit.

Example Day Trading Gold Chart

Above is the chart of GLD ETF and some actual trades. I am a very conservative trader and I like to lock in profits once I am satisfied with a move or if the chart shows any indication it may go against my position. I tend to exit trades a little too early but my focus is on catching the middle section of a trend because they are the safest areas to trade I think.

When there are no swing trading setups I focus on finding these intraday day trading gold patterns along with SP500 index and Nasdaq day trades to generate my weekly income.

My main focus for trading is swing trading ETFs and I have an automated trading system which i developed and it trades most of my capital on autopilot.

To sum things up I wait for a trend reversal or continuation pattern to form before I enter and exit positions. I am a firm believer of using breakeven stops, meaning once a position moves a certain amount in my favor I move my exit order to my entry price so that I have a risk free trade running. My swing trading goal for GLD ETF is 2-5% per trade which would last 2-10 days.

Get My Free Weekly Trade Idea Alerts: www.GoldAndOilGuy.com

Chris Vermeulen

 

David Morgan is a precious metals aficionado armed with degrees in finance and economics as well as engineering, he created the Silver-Investor.com website and originated The Morgan Report, a monthly that covers economic news, overall financial health of the global economy, currency problems, and the key reasons for investing in precious metals.

As publisher of The Morgan Report, he has appeared on CNBC, Fox Business, and BNN in Canada. He has been interviewed by The Wall Street Journal, Futures Magazine, The Gold Report and numerous other publications. If there is only one thing to teach you about this silver bull market it is this… 90% of the move comes in the last 10% of the time! Where will you be when this happens?

 

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Offer does not apply to Premium Memberships.
  

Interest Rate Hike To Crash Gold, David Morgan Part 2

 
David Morgan on Finance and Liberty

 

David Morgan is a precious metals aficionado armed with degrees in finance and economics as well as engineering, he created the Silver-Investor.com website and originated The Morgan Report, a monthly that covers economic news, overall financial health of the global economy, currency problems, and the key reasons for investing in precious metals.

As publisher of The Morgan Report, he has appeared on CNBC, Fox Business, and BNN in Canada. He has been interviewed by The Wall Street Journal, Futures Magazine, The Gold Report and numerous other publications. If there is only one thing to teach you about this silver bull market it is this… 90% of the move comes in the last 10% of the time! Where will you be when this happens?

 

Join The Morgan Report Free for 30 Days *
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Offer does not apply to Premium Memberships.
  

Gold Price Signals Unraveling of Financial System, David Morgan Part 1

 
David Morgan on Finance and Liberty.

 

David Morgan is a precious metals aficionado armed with degrees in finance and economics as well as engineering, he created the Silver-Investor.com website and originated The Morgan Report, a monthly that covers economic news, overall financial health of the global economy, currency problems, and the key reasons for investing in precious metals.

As publisher of The Morgan Report, he has appeared on CNBC, Fox Business, and BNN in Canada. He has been interviewed by The Wall Street Journal, Futures Magazine, The Gold Report and numerous other publications. If there is only one thing to teach you about this silver bull market it is this… 90% of the move comes in the last 10% of the time! Where will you be when this happens?

 

Join The Morgan Report Free for 30 Days *
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Offer does not apply to Premium Memberships.
  

Question of the Week

This week we received this input from the YouTube Channel…

I am betting on $12-$13 test and a dip below to scare people Silver is going back to the single digits for a long time, that’s the time to buy The last 4 years and the BS spun by these Silver pumpers have destroyed so many people! If they were stock brokers, law suits would be flying!

Comment: Certainly we as much as anyone are aware not only of the price movements but the sentiment of probably the majority of those that have invested in the silver market above the current price. Yet knowing the ups and downs of any market especially the silver market it was my duty to express the best way I knew of to purchase silver. Most on this free e-letter should have received this information.

From the Ten Rules of Silver Investing: Rule 4. Dollar – cost average to lower your costs – and increase your discipline.

Dollar-cost averaging is an ideal way to implement Rule 2. By making same-dollar purchases at regular time intervals, you wind up buying more metal when prices are low and less when they are high. This approach helps you develop discipline, erasing the “trader’ mentality that infects many market participants and instead fostering an “investment” philosophy.

Dollar-cost averaging also eases some of the sting when prices move against you, allowing you to view the downturn as an improved buying opportunity rather than a disappointing loss.

Yes, personally we have bought some silver at the $30 level and obviously that is poor timing, yet it was one purchase of many– because by taking the action outlined in Rule 4 the last purchase was at $16.25. Employing a long term view and knowing most commodity cycles last seventeen years dictates that the most experienced / disciplined investors are still in this market when no one else wants to touch it.

David Morgan
The Silver Investor

Interest Rate Hike To Crash Gold, David Morgan Part 2

 

David Morgan is a precious metals aficionado armed with degrees in finance and economics as well as engineering, he created the Silver-Investor.com website and originated The Morgan Report, a monthly that covers economic news, overall financial health of the global economy, currency problems, and the key reasons for investing in precious metals.

As publisher of The Morgan Report, he has appeared on CNBC, Fox Business, and BNN in Canada. He has been interviewed by The Wall Street Journal, Futures Magazine, The Gold Report and numerous other publications. If there is only one thing to teach you about this silver bull market it is this… 90% of the move comes in the last 10% of the time! Where will you be when this happens?

 

Join The Morgan Report Free for 30 Days *
* 30 Day Trial applies to new user sign ups only!
Offer does not apply to Premium Memberships.
  

Gold Price Signals Unraveling of Financial System

Gold Price Signals Unraveling of Financial System,
David Morgan Part 1

 

David Morgan is a precious metals aficionado armed with degrees in finance and economics as well as engineering, he created the Silver-Investor.com website and originated The Morgan Report, a monthly that covers economic news, overall financial health of the global economy, currency problems, and the key reasons for investing in precious metals.

As publisher of The Morgan Report, he has appeared on CNBC, Fox Business, and BNN in Canada. He has been interviewed by The Wall Street Journal, Futures Magazine, The Gold Report and numerous other publications. If there is only one thing to teach you about this silver bull market it is this… 90% of the move comes in the last 10% of the time! Where will you be when this happens?

 

Join The Morgan Report Free for 30 Days *
* 30 Day Trial applies to new user sign ups only!
Offer does not apply to Premium Memberships.
  

Silver Manifesto, We are at a VERY CRITICAL point right now.

Silver Manifesto, “We are at a VERY CRITICAL point right now.”
David Morgan interview on Howestreet Radio.

 

David Morgan is a precious metals aficionado armed with degrees in finance and economics as well as engineering, he created the Silver-Investor.com website and originated The Morgan Report, a monthly that covers economic news, overall financial health of the global economy, currency problems, and the key reasons for investing in precious metals.

As publisher of The Morgan Report, he has appeared on CNBC, Fox Business, and BNN in Canada. He has been interviewed by The Wall Street Journal, Futures Magazine, The Gold Report and numerous other publications. If there is only one thing to teach you about this silver bull market it is this… 90% of the move comes in the last 10% of the time! Where will you be when this happens?

 

Join The Morgan Report Free for 30 Days *
* 30 Day Trial applies to new user sign ups only!
Offer does not apply to Premium Memberships.
  

The Mining Footprint – A Bullish Gold and Silver Driver

The Mining Footprint – A Bullish Gold and Silver Driver
by David H. Smith

In print and during speeches to large audiences, David Morgan states the truism that “everything we use in our modern-day lives is either grown or mined”. These two pursuits pretty much deἀne what it takes to survive and thrive in the modern world. And how we go about conducting these activities has a direct bearing, not only on us today, but for future generations as well.

The production of precious and base metals presents a certain amount of environmental risk between the time they are dug out of the ground, to when they are sent to industrial applications or end up in the palm of your hand. Seldom found near the surface, gold and silver ore must be blasted, dug, and transferred out of narrow passageways, often hundreds, if not thousands of feet below the surface – then processed by one of two primary methods.

Transported to a mill, the ore undergoes a crushing – Ḁotation circuit process whereby the majority of the metals’ containing deposit is separated from the Iby David H. Smithremaining rock, usually by chemical and aeration operations, yielding concentrate or “con”. This relatively dry, high-value powdery residue is trucked to a smelter and reἀned into “dore” bars of 60 – 80% purity. Finally, it undergoes specialized processing to achieve the .999 ἀne level associated with the bullion/legal tender coins, bars or medallions of which the public is familiar.

Another process – heap leaching – harvests metal from low-grade deposits, involving the processing of a lot of rock. A ton of crushed ore may yield only a fraction of an ounce of gold or a hundred grams of silver! The ore is stacked on lined pads and sprayed with chemicals, in order to “leach” metal from the surrounding waste material. Ore thus obtained comes either from open pit excavation, or the previously-described underground mine source.The thick liquid tailings left after processing – with various levels of toxicity – are stored in “tailings ponds”, which over time may become solid earth. In some hilly parts of Mexico having little Ḁat ground, a hardened tailings pond may be covered over with earth and used as a soccer ἀeld! But in larger operations, these ponds can take many years – if ever – to fully dry out, since a large operation continually adds liquid residue. If the pond walls are not built properly – or even if they are, and if they become subject to shifting ground, a Ḁash Ḁood, or some other destabilizing event, they may leak – or collapse.

This is what happened recently in British Columbia, with a variation on the theme a short time later in Mexico. In the B.C. case, reportedly several billion gallons of treated water of questionable toxicity Ḁooded into a nearby lake and surrounding streams. While it will take some time to measure the full effects, the negative impact on the public’s perception of mining and the risks it entails was immediate and likely will be long-lasting.

Read rest of article here…
http://goo.gl/9vMYmp

 

David Morgan is a precious metals aficionado armed with degrees in finance and economics as well as engineering, he created the Silver-Investor.com website and originated The Morgan Report, a monthly that covers economic news, overall financial health of the global economy, currency problems, and the key reasons for investing in precious metals.

As publisher of The Morgan Report, he has appeared on CNBC, Fox Business, and BNN in Canada. He has been interviewed by The Wall Street Journal, Futures Magazine, The Gold Report and numerous other publications. If there is only one thing to teach you about this silver bull market it is this… 90% of the move comes in the last 10% of the time! Where will you be when this happens?

 

Join The Morgan Report Free for 30 Days *
* 30 Day Trial applies to new user sign ups only!
Offer does not apply to Premium Memberships.
  

The Palladium Bull Run is Underway

The Palladium Bull Run is Underway
David H. Smith

A precious metal which has over 80% of its annual production coming from just two countries? Considerably rarer than its cousin, platinum – known by the Spanish Conquistadors as “little silver” – yet sells for a bit more than half as much? Like silver, a “two-doors” metal with both vital industrial applications and increasing investor interest? And like these metals, it can be bought and sold by investors in the form of bullion coins and ingots? That metal is palladium.

Its better known relative, platinum, also suffers from a supply-demand imbalance, which over the next few years should take its price much higher. However, palladium, which now trades at $600 per ounce less, yet can be substituted for most of the roles platinum ἀlls, is in the eyes of this writer an investment option with even more lucrative potential.

Read the entire article here…
http://goo.gl/KPcSBn

 

David Morgan is a precious metals aficionado armed with degrees in finance and economics as well as engineering, he created the Silver-Investor.com website and originated The Morgan Report, a monthly that covers economic news, overall financial health of the global economy, currency problems, and the key reasons for investing in precious metals.

As publisher of The Morgan Report, he has appeared on CNBC, Fox Business, and BNN in Canada. He has been interviewed by The Wall Street Journal, Futures Magazine, The Gold Report and numerous other publications. If there is only one thing to teach you about this silver bull market it is this… 90% of the move comes in the last 10% of the time! Where will you be when this happens?

 

Join The Morgan Report Free for 30 Days *
* 30 Day Trial applies to new user sign ups only!
Offer does not apply to Premium Memberships.
  

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