“We are at the beginning of the biggest, most unbelievable run in the metals, I think,” said David Morgan of the Morgan Report.
The gold price hit yet another price milestone on Tuesday (August 4), breaking through US$2,000 per ounce for the first time ever and then continuing to rise.
For David Morgan, all signs show the third leg of the current market cycle has begun.
“The biggest move is in the third leg, which we’ve just entered. Gold proved it a couple of days ago — what you have to have is a new nominal high, which we had in gold, and now we’re getting that round number of US$2,000,” said Morgan, who is the publisher of the Morgan Report.
“Silver will catch up in my view, and probably … outperform,” he added.
Speaking about silver’s path forward, Morgan said that the US$26 per ounce level, which the white metal reached on Tuesday, is a key milestone. Beyond that, he expects silver to be able to push past US$50, where it has stalled twice before in the past.
“When you have a big resistance or a big support level and they are taken out, it usually takes three times as a minimum — so we stalled at US$50 in 1980, we stalled at US$50 in 2011. The next time through will be the third time, (and) I’m pretty certain that US$50 will be taken out,” Morgan explained.
Silver might get stuck there for awhile, but ultimately he believes that triple-digit silver is in the cards — though exactly how high it could go is hard to say right now.
Overall, Morgan believes that silver is the more compelling story than gold at the moment, but he emphasized that precious metals as a whole are currently well positioned.
“We are at the beginning of the biggest, most unbelievable run in the metals, I think,” he said. “I know the amount of fiat that’s been produced, and I know that people are catching on, and that’s the main thing … for those of us who survive financially, I think the precious metals will lead the way.”
Watch the interview above for more from Morgan on silver and gold, including commentary on physical silver and silver stocks and their place in a portfolio.
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Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.