In an open letter to Tesla’s Elon Musk, silver guru David Morgan suggests the company should consider accepting payment in silver and/or gold through the LODE Project.
Could precious metals be next? In a recently penned open letter to Musk, David Morgan, publisher of the Morgan Report, suggests Tesla should consider accepting payment in silver and/or gold through the LODE Project, which works to tokenize the metals using blockchain technology.
Speaking to the Investing News Network, Morgan, who is an ambassador for LODE, described precious metals-backed cryptocurrencies as “sleeping giants” that have yet to reach critical mass.
Morgan doesn’t know if Musk has seen his letter, but he thinks it’s possible given the power of the internet. “My purpose was to bring awareness to him and everybody else,” he said.
Aside from accepting precious metals as payment, silver guru Morgan also pointed out that Musk may want to secure Tesla’s supply of silver given that the company is a commercial user of the metal.
“It’s not just to him, it’s to anybody that’s not in the club right now, that’s (not) already part of the Silver Users Association and (doesn’t have) a direct relationship with a refiner,” he said.
“(Musk will) have a big need, and he’s not … in the club that’s already got a direct line — so he’s going to have to go in the open market and get it. And that’s a little different than going into, let’s say a source that you’ve already established for the last 30 years or so where you’ve got first dibs on it.”
Aside from Musk and Tesla, Morgan spoke about the silver squeeze movement that originated on Reddit. While it’s lost some steam since it first gained traction in late January and early February, Morgan said those who are still involved are seriously interested and are digging deeper than he expected.
In terms of price action this year, he admitted the current US$25 to US$27 per ounce level is a little discouraging, but said he thinks it would be reasonable to see silver in the US$33 to US$34 range in 2021.
“Until silver gets above US$27.50, maybe the US$28 level, and stays there on volume, then we’re stuck — we’re stuck in this trading range,” he said. “Will this trading range go until the end of the year? We’re only in mid-April, I’d say no … I think higher, I think substantially higher.”
Watch the interview above for more from Morgan on silver.
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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.