Michael Campbell – “David is one of the best known Silver Analysts in North America, and he has been very very accurate on what he thought the metals were going to do in this last period, and it is unusual to find that. When the markets were excited last September with Gold at $1900 and Silver at $49, David Morgan called for just the type of consolidation we are experiencing now”.

David thinks we are in the “scare you out or wear you out” long consolidation. The “scare you out” being the sudden drop that occurred in silver in 1 1/2  weeks when it plunged from 43-33. The” wear you out” being the month after month of consolidation that is so tough for long term investors, some who might have bought silver at 38 and are now enduring months with it at 32. That said, David underscores this is typical bull market psychology.

David thinks this consolidation is going to continue, possibly until September, before Gold ultimately breaks out above 1900 and Silver breaks out above 40. He also firmly believes metals are going “far higher”.

Regarding the disconnect between the relatively high precious metal prices and the precious metal stocks that are trading at multiple year lows, he thinks precious metals stocks are so undervalued that it wouldn’t make sense to sell them now if you bought them at higher prices. Indeed he thinks that you should buy more if you have the ability to do so. Markets do not like these divergences and the stocks will ultimately rally and  become overvalued compared to the metals before this bull market is over.

In the interview David describes how the bottom will occur  in the precious metals stocks, what will send them soaring, and the precious metal equities he would buy, and is buying now.

Listen to the full interview. The full interview begins at the 26.25 mark on the Money Talks March 31st player located in the centre of the masthead at the top of any Moneytalks.net page.