David Morgan of The Morgan Report, an icon in the silver sector, returns to SGT Report to discuss the future of the US Dollar and the transfer of physical gold from West to East. More specifically, the transfer of gold and silver away from the Comex and the City of London's paper markets, to Chinese PHYSICAL precious metal markets like the Shanghai Gold Exchange, Shanghai Futures Exchange and the ABX.
It's becoming very clear that a sea change is underway as China hoards PHYSICAL silver at the Shanghai Gold Exchange, while openly encouraging Chinese citizens to acquire physical silver and gold as a way to protect wealth. It's a paradigm shift of epic proportion, away from paper promises and into PHYSICAL metal. David Morgan says,
Back roughly a decade or so ago, China was exporting roughly 100 million ounces of silver per year – exporting out of China. And then…it was roughly six years or so ago they started becoming a net importer of…a hundred million [ounces]. So that’s a 200-million ounce swing.
According to Steve St. Angelo from SRS Rocco Report, in just the past several weeks the Shanghai Futures Exchange's PHYSICAL silver stocks have increased from 54.7 million ounces to 60.6 million ounces, a figure that most certainly must leave officials at the Comex filled with envy, if not drowning in outright fear.
In this wide-ranging conversation, Sean from SGT Report and David also discuss Clif High's Web bot project. Originally developed in 1997 to predict stock market trends, the Web bots crawl the World Wide Web in search of speech markers, chatter and other specific data which can often predict future events. For some time now, the Web bot data has been predicting an explosion in the price of silver, with some of the precious metals language indicating that silver might one day achieve a 1 to 1 parity with gold as the USD finally meets its inevitable demise as the world's reserve currency.
Morgan says that silver is one precious metal that the Bankers fear. And though a silver to gold ratio of 1 to 1 is a very heady prediction, Morgan says it's actually possible given silver's extreme rarity, history and widespread use as an industrial metal.
"I think it's accurate… What people don’t seem to realize about silver in general, for my generation or perhaps people slightly older than me, was that…in 1965 we were issued slugs. But through 1968, you could actually take a silver certificate to the Treasury and get silver for it. So they were circulating 90% [silver] coins in the United States, until and through 1964. But it was illegal to own gold until 1973. So you had this gap between say, ’65 and ’73, where really all you could do if you understood monetary history at all, and Mr. Bunker Hunt certainly did, was to preserve your wealth in silver. …I’m just trying to give a little history here of why silver was probably thought of more as money back in that time-frame than it is now. I mean I read these articles every so often about silver not being money, which always makes me laugh, because the word “money” and the word “silver” are synonymous.…The gold standard is one step to fiat…If you could get the people to give up silver as money… [then] the bankers only had one metal to control, and they owned it. He who owns the gold makes the rules . So a gold-only standard is like the step required before you go to a full fiat system, whereas if you have a bi-metallic standard it’s more difficult for them [the bankers]. So believe me or not, the Establishment cares more about silver than they care about gold . Not from a monetary aspect, but probably from a control aspect."
As for the future of the US Dollar as the world's reserve currency, Morgan says:
"It appears strongly in all the evidence that I've studied that there is a faction or breakaway between the Anglo-American empire and let's call it the axis of the BRICS… I've always believed that it would unravel enough in my lifetime to be a substantial change, which means it's going to be probably a 20 year ordeal for my two daughters… I think it's continued longer than I first believed because to keep a Ponzi scheme going you need to have more people at the bottom."
So sit back, grab a cup of coffee and get ready for a far-reaching and dynamic discussion with Silver Guru David Morgan about the Dollar's demise and silver's very quantifiable move from west to the east.
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