David Morgan of Silver Investor Report is a well-known expert on silver. Naturally, he is bullish on silver prices. But for many investors, after having seen silver prices languishing for so long, they feel like giving up.
As we wrote in our book, How to buy and invest in physical gold and silver bullion, there are many reasons why silver is a better choice than gold in terms of price speculation. This is because it is a hybrid between monetary and industrial metal. In terms of supply and demand fundamentals (in the context of industrial use), silver is much stronger than gold (because it has hardly any industrial use).
However, for whatever reason, silver prices are languishing for a very long time. But for David Morgan he has a theory of when silver prices will see its day of vindication. The theory goes like this:
- Assuming that one day, people will lose faith in fiat money, gold will be hoarded by more and more of the masses.
- Unfortunately, gold is relatively expensive and rare and that means the majority of the masses will miss out on getting some gold for themselves.
- When that happens, they will notice that silver is dirt cheap relative to gold (since silver prices have been languishing for a very long time).
- Therefore, they will surge towards getting silver.
Given that silver prices are at a far lower base than gold, it doesn?t take much for silver prices to rise in absolute terms in order for it to rise a lot in percentage terms.
That?s when David Morgan believes that we will see silver prices soar. Will that day come? We don?t know, but this is a very good Black Swan trade to get into. If you want to speculate in silver prices, just make sure that the ?silver? that you hold are not empty promises.
