VIDEO — David Morgan: Stock Market Pain Not Over, Why Silver and Gold Aren't Higher (Yet)

David Morgan: Stock Market Pain Not Over, Why Silver and Gold Aren't Higher (Yet)youtu.be

At the beginning of 2022, David Morgan, publisher of the Morgan Report, was calling for a reality check in the stock market. Halfway through the year, there's no question that it's facing a reckoning.

"I've been talking about the stock market being overvalued for quite some time, but I really sensed that this year was the year, meaning that it couldn't really go on much longer — and it hasn't," he said about the situation.

And in his view, it's not over yet — "I think there's more pain ahead. I think we need that capitulation, and we need that washing away of these overvalued situations," Morgan explained to the Investing News Network.

Precious metals are considered a safe haven during times of turmoil, but despite this year's stock market activity and other areas of turbulence, silver and gold haven't performed as well as some investors would like.

Morgan compared what's going on to what happened in 2008, when the silver price was cut in half and gold lost about 30 percent of its value; gold then doubled from its low, while silver went up fivefold.

"The point is both have been hit just like in 2008, but they've been hit less much less in percentage terms," he said, noting that this is significant because economic conditions are currently much worse now than they were then.

"I think silver will outperform just like in 2008 — gold doubled from the bottom, silver went up fivefold from the bottom. I think this time around they're acting stronger during this recessionary start, or depressionary start, and yet they will probably do better than they did in 2008," Morgan noted.

Watch the interview above for more from Morgan on silver, including the metal's real highest price.

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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.