(Text on screen): David Morgan, Silver-Investor,
Exclusive Interview
Allen: Welcome back and let's welcome David
Morgan of the Morgan Report.
David, how are you doing today?
David Morgan: I'm doing well, Allen.
Thank you.
Allen: How's your weather out there?
David Morgan: Very clear and white.
It's a good day today.
Allen: Well, it is overcast and it looks like
we might get some more rain today down here,
but no snow.
David Morgan: Yeah.
We've got that.
Allen: David, Japan has unleashed another
round in the currency wars.
The dollar had a rare up day earlier this
week, but she's resumed her free-fall.
Europe; it looks like we've got a race to
the bottom now with these currencies.
Would you agree with me there?
David Morgan: Absolutely.
And I'll give credit where it's due.
Jim Dines is the one that talked about the
race to the bottom years ago and here we are.
And I called the fact that we would have a
currency crisis.
I don't like using the word "hyperinflation"
because I really don't think we're going to
see a true hyperinflation.
It doesn't matter.
The point is that we are in a situation where
the failure is right in front of us.
Globally, all the exporting nations are trying
to lower the value of their currencies.
Can you believe that?
They're trying to lower the value of their
currencies so that they can export and maintain
some kind of income into their nation state.
It's not working, and it's failing, and it's
right before our eyes.
Yet, there's only about 1 percent of the population
that really seems to be astute enough to catch
on to the failure, which is, in my thinking,
unbelievable.
I would think that at least half the people
out there would see what's happening, but
unfortunately history teaches different, and
we're watching it in real time.
Allen: So, how do we protect ourselves?
David Morgan: Well, it's more than protection.
And, of course, protecting yourself is to
have something real and real money is the
only thing that's ever worth in these types
of situations.
I shouldn't say the only thing, but the most
predominantly sound thing, and that's gold
and silver, obviously.
On top of that, any asset, any commodity that's
really of value that you could store, hold,
or maintain would do well also.
And, lastly, you've really got to think outside
the box.
You've got to look at what's needed by the
marketplace with the little vestige of the
free market that still exists.
And some does.
You've got to be able to think what the market
needs.
What do you need?
What are you going to need five years from
now if the economy is in a different state
than it is right now?
Are you going to need; you can list them:
You're going to need food, you're going to
need water, you're going to need shelter,
you're going to need cheap transportation.
You're going to need a way, maybe, to generate
your own energy.
I mean, there's lots of things to do.
And people that can go out and do that type
of thing will actually prosper during hard
times.
There were actually a lot of millionaires
created during the Great Depression, and the
reason being is that necessity is the mother
of invention.
When you have nothing to do, lots of time
on your hands, and maybe a few rudimentary
things in your garage, but you get to think
and ponder and say,
"You know what?
I know what I need.
I need this."
So, I'm not all negative about this.
But, Allen, I think we're just starting to
see a quickening of the unraveling, as you
so eloquently talked at the beginning of the
show.
Things are unraveling fast.
Look at Japan.
They've been in a deflationary mode now for
over a decade.
And they keep trying to re-flate the economy.
It's not working.
Allen: Two decades.
David Morgan: I'm sorry.
Correct.
Two decades.
Allen: Actually, we're two years into the
third decade.
And speaking of things unraveling quickly,
the gap books in the United States, we had
a, at the end of the fiscal year 2011, it
was full .6 trillion dollar deficit based
on generally accepted accounting principles.
Twelve short months later, 6.9 trillion; a
50 percent decline in 12 months.
So, it's accelerating to the down side here
as well, but, you know, with all this money-printing
they've done a good job of disguising what's
really going on.
David Morgan: That and the electronic payment
system.
I mean, I was talking with another economist
yesterday and I forget the number.
I think it's 47 million, is that right, Americans
are on Food Stamps?
You know, in the '30s you would see these
massive bread lines that people would stand
out for hours to get in line and get.
. .
Today, you don't see it, because they guy
ahead of you at the grocery store might be
giving one of these little cards to the checker
to get their food.
And I'm not gonna value-judge it, right or
wrong.
All I'm saying is there's a lot underneath
the surface that's not as obvious as it was
in the last great Depression.
Nonetheless, the roles are increasing for
people that need assistance.
Allen: David, what is a good way for people,
and I know we do this about every other time
you're on, but you pick up new listeners,
people don't always hear every segment.
For someone who currently does not have any
physical metal, what is the best way for someone
to get started preserving some of their wealth
in the metals?
David Morgan: The best way is to dollar cost
average, just start in, no one can pick a
top and bottom every time.
So the best thing in a bull market is just
to make a plan and stick to it.
And that just means put in X amount every
month and just don't waver from that.
And there's an automatic savings program that
I'm an affiliate of.
It's called Silver123.net.
that's Silver123.net.
You can save gold, you can save silver, you
can save both.
You can get the metal shipped to your home
or your office or your bank; wherever you
want it to go.
And I think it's really great.
And on top of that, it's not an MLM; it's
not a multi-level marketing program.
But it is an affiliate program.
And you can actually use it to increase your
income.
If you know anything about the Internet and
you just have an email list, for example,
you could let your friends and family know
about this program and actually earn a little
bit.
They basically have an advertising model that
lets the people that are involved do the advertising
rather than direct advertising.
The money that they save from advertising
goes into your account in the form of gold
and silver.
I really like this program.
Allen: Is junk silver the way to go, to start
with?
And let's; if you don't mind, tell us what
we mean by "junk."
David Morgan: Right.
I think it is.
And junk silver; I don't like the word "junk,"
but what it means is Constitutional silver.
In other words, 90 percent silver coins like
dimes, half dollars, quarters that were minted
in 1964 or earlier.
All those coins from the United States have
90 percent silver content.
They're legal tender.
They still are.
Their value is far higher than what's stamped
on them.
But nonetheless it's a great way; and usually
you can buy that type of silver very near
the melt value, which means you're not paying
much of a premium.
Sometimes you actually can buy it at a discount.
Allen: When would you move from the junk to
the bullion coins or bars?
Let's say you have a; first of all, how much
of one's total portfolio do you think that
they should have in silver; specifically silver.
David Morgan: That's tough.
I'd say 10 percent.
And I really think a lot of that should be
in physical form.
And when you move out; it's an individual
choice.
I think if you're a normal American, I think
one bag, which is a thousand dollars face
value, which in today's world is probably
20 thousand; 21, 22 thousand in fiat, is probably
plenty for the average American.
If you're wealthy, then one bag per family.
And I tell people, this is just my take on
it, that once you have that accomplished then
you should move on to another form.
And the reason being is these bags are kind
of bulky.
But, jeez, it's a great way to start.
It's very recognizable.
It's small units, so you can spend them into
circulation or barter with them if the need
every came.
Even if you don't, they're easily recognized
and easily saleable back to any coin dealer
or eBay or your neighbor or whatever.
So, it's great way to start.
It's just a little on the cumbersome side,
but, again, it's an individual choice, but
I usually urge people to start with junk bags.
And you don't have to buy a whole bag.
You can start with a quarter-bag.
You can start with a roll of 1964 quarters
if you want.
You could buy one at a time.
But, basically, yeah, you start in that realm
and then after you've accomplished a good
savings in junk silver, then you can move
up to something else.
Allen: Is there a particular denomination
on the junk silver that you prefer?
David Morgan: I'm OK.
I like the small unit thing.
I mean, a dime is worth about 3 or 4 dollars
in fiat, so a dime will buy you a gallon of
gas.
So, I mean, I like dimes, but quarters are
fine.
But the smaller the unit, really, the better,
because it's more spendable.
I mean, we may never get to this, but it doesn't
matter.
The worst case is you have to use it for barter.
And I'm not saying that's going to happen,
but nonetheless, and the probably will never
happen again, but, Allen, I'm old enough.
In L.A., during the Gas Wars in '73, there
were a couple of independent gas stations
that were taking silver and there was a separate
line for them and you were buying gas for,
guess what, for 10 cents in silver.
So, will it happen again?
I don't know.
But that's something to think about, that
silver has value over a long period of time
and its purchase power does maintain.
Allen: We've been speaking with David Morgan
of The Morgan Report.
David, it's always a pleasure, buddy.
David Morgan: Thank you, Allen, my pleasure.
(Text on screen): Join us today.
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