David Morgan: Cryptocurrencies Can be Profitable for Nimble Investors

David Morgan is best known for his commentary on precious metals, particularly silver, but as he’s emphasized in the past, The Morgan Report covers a wide array of commodities and investment opportunities. At the recent International Metal Writers Conference, he proved that point with a presentation that covered precious metals and the blockchain.
“[Cryptocurrencies are] the hottest thing going,” he told the Investing News Network after his talk. “And the volumes are increasing, which means it’s sustainable. So it’s high, and as quickly as it’s rising, I expect to see it continue for some time.”
Personally, Morgan isn’t currently interested in getting into the cryptocurrencies market, but he said that doesn’t mean it’s a bad place for investors to be. “I’m free market. I think if anyone wants to be into cryptocurrencies, have at it — I think if you’re nimble you can get into almost any of them and make money,” he said, adding, “I would just caution people to use a free trade, which means once you double your money take your original capital out and let the rest ride.”
Watch the video above to hear why Morgan thinks gold and the blockchain could eventually be used together, and to learn which commodities he currently has his eye on. The transcript for this interview can be viewed below.

INN: We’re here today at International Metal Writers Conference, and you spoke yesterday about precious metals and cryptocurrencies. Prices for cryptocurrencies are currently very up — what is driving prices right now?

DM: Lots of demand. It’s the hottest thing going. I put up a chart of bitcoin — I could’ve put up several, I did other charts — and the volumes are increasing, which means it’s sustainable. So as high and as quickly as it’s rising, I expect to see it continue for some time.

INN: You see it continuing for some time, but it sounds like you’re not too interested in getting into the market yourself. Why is that?

DM: Maybe I indicated that. I wrote my first piece about four years ago, and it was titled “My Two Bits about Bitcoin.” I had one concern at that time, and that one was basically [that] as the blockchain expanded it would take more and more time for it to process data — and that’s true. But that problem has been overcome now. Technology is technology — it doesn’t solve all our problems, but it could solve many. I also outlined a problem that I see now with the internet in general, and the cryptocurrencies are a subset of the internet. So that’s still a concern. 

But … I’m free market. I think if anyone wants to be into cryptocurrencies, have at it. I think if you’re nimble you can get into almost any of them and make money. I would just caution people to use a free trade, which means once you double your money, take your original capital out and let the rest ride. I mean, if you’d done that with bitcoin when it was $100 [and] it doubled to $200 [that would be] phenomenally valuable right now. For myself personally I’ve kind of stayed away from the space, but some of the guys that work for me are involved in a lot of the cryptocurrencies.

INN: And you did talk about an opportunity you’re consulting on to link precious metals and cryptocurrencies. Could you explain that a little?

DM: Sure. I don’t know them all, it’s not a space that I’m studying. I don’t know it extremely well, but there are some precious metals-backed cryptocurrencies. There’s bitcoin, there’s a precious metals debit card that I’m very familiar with and I think there’s going to be a hybrid system where you use a blockchain with gold backing, for example. 

I gave the fact that I’m working on a system with someone else, and we’re gathering some brain trust to implement it in Indonesia. Primarily because of the youth of that continent, and the fact that most of them are already very familiar with gold; almost all of them to a man and woman have gold. So you’ve already got gold dispersed throughout a huge population base that’s very technologically oriented — they want to do everything off of their phone. If a platform could be created that combines the two, it’s got high potential.

INN: Are there other ways that you see technology influencing the precious metal space moving forward?

DM: Lots. One of the things we reported in The Morgan Report was this mobile mill, which is something that is very advantageous to a small miner. It allows them to process … gold without diluting the shareholders, which is huge in the small-cap space. Additionally there’s another company called EnviroLeach Technologies (CSE:ETI) that was a spin out of the original one I just mentioned, and it’s got a reagent that will basically be able to replace cyanide and be very environmentally friendly. So lots on that side. We kind of got lucky, or our hard work paid off, however you want to think of it. 

INN: I think I would be remiss if I didn’t ask you about gold and silver prices. Do you have any predictions for the rest of the year?

DM: I do. This sounds like a set up, but honestly I just finished a silver price forecast for 2017 available for free at my website. Just go to TheMorganReport.com, put in a first name and give us an email address and you will get access to that report. I just finished it two weeks ago for another conference I was speaking at — I had to have it up on the website because I was handing out postcards promoting the free report.

INN: Any other commodities you’re looking at right now? I think last time we talked you mentioned you’re looking a little at energy metals?

DM: Cobalt, lithium of course, vanadium. Silver is used ub batteries and no one really knows it — they’re the best there are, they’re military spec, that’s about the only people who can afford them. Zinc is still a big player in the battery industry, and we just did a paper on the energy metals about two months ago at The Morgan Report. There are maybe one or two I’m not thinking of right now. We’re looking across the space, we always try to stay a step ahead if possible, which is tough to do, on whatever’s making a meaningful difference in the resource sector.

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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.
Related reading: 
International Metal Writers Conference 2017, Day 1: Notes from the Floor
International Metal Writers Conference 2017, Day 2: Notes from the Floor