The Morgan Report Blog

David Morgan Radio interview with Michael Campbell

I’ll be appearing on Michael Campbell’s MoneyTalks this Saturday, Canada’s #1 rated financial show. I invite you to tune in as Mike and I discuss the driving trends in precious metals, as well as some specific ideas on how to play this market in the near term!

You can listen to the show live from 8:30am – 10:am Pacific time or download the podcast from this link, or directly from iTunes – http://www.cknw.com/money-talks/

All the best
David

GOLD’S PARADIGM SHIFT

GOLD’S PARADIGM SHIFT
by Elaine Diane Taylor

We are going through a tremendous change. A new paradigm. The last time this happened was the Renaissance and Reformation.

The two powers at the time were the nation-state (a relatively new creation at the time) and the church. These powers controlled the flow of information, the flow of money and thus the flow of everyday life.

But they couldn’t stamp out the paradigm shift because the printing press threatened their ability to control information.

This new technology made it possible for a message to go from one-to-many, and the cultural shifts changed the map of Europe, commerce and the power of nation-states.

We’re heading into another swing from centralized to decentralized power due to our new technology — electricity and the internet.

I’ve used the analogy of preparing for a winter storm by looking at the severity of those in the past. Some of us look at economic graphs of waves, or seasons. Every closed system goes through seasons. The Romans called it a saeculum. About every hundred years a society goes through spring, summer, fall and winter. If they contract, protect, and live through the winter then they expand into a beautiful new spring.

We’ve just had an artificially long economic summer and fall with global QE money printing. Instead of money being a symbolic value of the nation-state’s warehouse, or GDP, instead we have the value of a promise of what the debtor and lender will do in the future. So we changed time. We divided what is in the storehouse and then multiplied the pieces through promises backed by the strength of an army.

Money stopped symbolizing wealth and became a financial instrument inside a complex system of growth by division and multiplication instead of adding and subtracting. It became centralized behind military and financial strength.

It’s the rise and fall of a closed system — an Empire. Inside a closed system if each person sacrifices for the good of the group then the group does better and the individual does better. John Nash showed us this in the movie A Beautiful Mind. But as soon as someone realizes everyone else is sacrificing, and they can look after their own interest off the benefits of the closed system, then it begins to fall.

It’s the looting.

If the looters are in power they can maintain the system while draining it by controlling information. They can offer free bread and circuses, as Roman rulers did. Citizens start to look at their own benefits at the group’s expense and it all falls down. When it becomes apparent to those with information that the drained system will collapse they look after themselves and those close to them. At a certain point it doesn’t matter what information gets out. It’s over. They got out before that terrible flower bloomed.

The longer those in power can keep information and money centralized the longer the current system can go on.

In the Renaissance the church demonized the printing press. It was of the devil. The printing apprentices were even called the “printer’s devils”. Benjamin Franklin, Thomas Jefferson and Mark Twain were all printer’s devils. I was a printer’s devil. As the poet Thomas Moore wrote, “Thou angels may write, still devils must print.”

Any loss of power to curate information to keep the masses safe was the devil.

But then when it couldn’t be stopped the Church stopped demonizing and instead started controlling the printing press. They invested in controlling all publications, all information.

The power swung from decentralized back to centralized.

New Technology.

We now have electricity, with instant transfer of information, and with that came the internet. The internet brought the movement of not just information, or an idea, from one-to-many, but now we have movement from many-to-many.

The concept of the public sphere, freedom of expression and information not influenced by a ruling elite, has moved from the cafe of Europe to every mobile device on the planet.

And with this comes the decentralizing of structures holding up that infrastructure. Oil, mainstream media, central bank fiat money, transportation, warfare, allies, management of production — it has all been tossed in the air with new technology. And soon we’ll see those changes start to play out. We’ll see a new flower begin to bloom. It’s my hope that it will be beautiful beyond anything we’ve seen.

Those currently in power are conversing with each other to try to control the move to the new paradigm.

Those without power try to use the new technology to gain a place.

The tools of culture, finance, warfare and religion all play a part. Like a global game of Civilization V.

Millenials, aged between 18 – 32, will play a big part of the paradigm shift. They grew up digital. They transfer messages instantly. They think more with symbols and less in a straight line from point A to point B, as the printing press taught.

The introduction of digital currency will tangle for winners. Those in power will look to control it or sabotage it. That’s normal. I wrote about that in the song Bitcoin Barbarians. Bitcoin was the first and has a lot of infrastructure set up, but we’ll see how the blockchain plays out.

Why does it matter?

Because as there’s a swing from old tech to new, and a rebalancing of the Game of Coins and Crowns, there’s a window of time between the old and new where trust in a paradigm is lost but a new one hasn’t come in yet. When that happens there’s a movement to the last thing that was trusted. In money that was physical gold.

Countries are buying it up like mad so they have some poker chips, as Jim Rickards says, at the table when the new money rules are sorted out.

We’ve moved beyond the straight line linear thinking of the printing press. We’ve moved into the electronic age where ideas and information transfer instantly and symbolically.

Instant information movement.

Visual and symbolic.

New tech. New paradigm.

How will we order our lives around the new paradigm of money?

A promise to pay? A coin in hand we trust? A string of zeros and ones?

Gutenberg brought in rational thought and the scientific method. While we as a society swing back to symbolic thinking it’s important to think critically and rationally.

Central banks have power. The internet allows decentralized power. So, the next step is the nations’ central banks to join their power in an uber central bank, the global central bank, the IMF, that issues world money and keeps the system going. It’s the next logical step in the swing. They will naturally try to maintain what they believe is best for the world.

Countries are gathering physical gold as something to trust when nothing else is trustworthy yet and the IMF starts issuing world money — the SDR.

This is a rambling article.

It moved from linear to symbolic. Follow the paradigm shift?

I wrote We Know How it Goes and Coins and Crowns before the 2008 market crash. I wrote Wag the Dog before Russia invaded Crimea. I wrote Not Much of a Holiday as the Greek bank holiday situation portends future back room banker passes to manage debt, the control of information through media and new tech in the South China Sea.

The message is that those who owe wait in line for those who own.

If nations are buying gold as insurance while the paradigm shifts then perhaps it’s a good idea to do a little of the same.

Markets close and rockets crash
silken road treasure, files hacked,
water, oil, fusion, gold,
news and nations all sold.

What do I know, what do I know
if the media tells me so?
Which way, which to go
Palms are greased (Greeced) they close the door
then fates are sealed
They want more, we want more
which way will it, which way will it go.

excerpt from “Not Much of a Holiday”
words and music Elaine Diane Taylor
© 2015 Intelligentsia Media
SOCAN/ASCAP

Elaine Diane Taylor~

article © 2016 Intelligentsia Media Inc.
written by Elaine Diane Taylor
www.elainedianetaylor.com

 

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?

 

Learn More About The Morgan Report Today! *   

Did Silver Move up 200%? And why this is the time to…

Imagine silver moving from $15 to $45 a 200% increase. What would that mean to silver investors? What would it mean to you? Many silver stackers would be in the profit zone, and those of us that have carried the message would once again be received in a more favorable light.

As you know silver has come off the bottom, but did you know that our top picks for this year in the January issue are up 200%? That is correct; it would be the same move as silver going to about $45 per ounce!

Many times critics have meant well and exclaimed how having a metals only stance was the way to go. Every time you listen to that message ask yourself if it is right for you? We favor a balanced approach that uses a portion in physical metals and some into the shares of resource companies we carefully select for our members.

Upcoming in the June issue we plan on recommending exactly the type of gold miner you have been looking for in this environment (that is one in which you can find a high quality primary gold and/or silver company trading at bargain basement levels while the complex as a whole has had a nice run over the past 4 months). This company has a solid management team and board of directors that more than qualifies under our strict criteria. This publically traded company is trading at a substantial discount to Net Asset Value! Which means you are buying something in a hot market that if liquidated is worth more than you are paying for it. How many in our industry can make that statement?

When you own this investment your largest asset is a gold resource of 2.5 MILLION ounces and a silver resource of nearly 200 MILLION ounces. Since grade is King and many in our industry only speak to the “amount” let us tell you the grade.

The average gold grade of is % grams per ton. Realize many mines are actually operating at one g/t. Because this is a gold/silver mine you need to know the silver grade is a most respectable Au 360 grams per ton. Which is well over eleven ounces per ton, and at today’s price that is $200 per ton.

This producer has discovered over EIGHT new veins over recent years leaving very substantial exploration upside. The following chart depicts current price-to-net asset values of this company’s piers relative to this company and many will look back and wish they had taken action.

TWMR-May2016a

• This addition to the Morgan Report Asset allocation portfolio is an emerging mid-tier
producer which operates two mines in two of the most geopolitically safe jurisdictions.

• It also has two development projects, both with very prospective land packages.

• There is a reason why it is trading at such a discount to NAV and operating cash flow
is absurd and in time investors will discover this fact and significant share price appreciation
will take place in our strong opinion.

• Our price target using $1,200/oz. Au and $16 /oz. Ag @ 6% is more than double the price
per share as of the close on Friday, May 13th.

Because far more money is made in (paper) silver and gold we are seeing new investors subscribing to our website and diversifying by selling some physical and buying mining shares. Although risky, the gains can be truly spectacular. The whole process is outlined in the membership area when you read How to Use the Morgan Report.

Yes, you can sit on your stack or you can move into a situation where you truly have the ability to beat the bankers! And that is what I want for you… I want to see you beat the bankers at their paper games and move into physical metals with your winnings, I’ve been doing it for years and so can you. We do all the work for you, all you need is a broker and the ability to follow simple guideline.

And remember all website members are allowed to ask us two questions per month, and we guarantee an answer.

This market is just heating up, and I personally made a video for our members letting them know what to expect for the next month or two.
To beating the bankers,

David Morgan

P.S. In the January 2016 issue, Chris Marchese (Senior Equity Analyst) discussed the top-picks for 2016 in the top-tier and mid-tier mining companies. In the top-tier, a top pick for 2016 saw the company’s stock price has appreciated 237%, going from under $3.30/share to well over $10/share. The top pick for the year overall and in the mid-tier category is up 180% (going from slightly over $2.30/share and appreciating nearly $4/share).

 

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?

 

Learn More About The Morgan Report Today! *   

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