{"id":919,"date":"2010-02-02T10:41:21","date_gmt":"2010-02-02T14:41:21","guid":{"rendered":"http:\/\/www.silver-investor.com\/blog\/?p=120"},"modified":"2018-06-10T10:58:23","modified_gmt":"2018-06-10T10:58:23","slug":"october-interview-with-ellis-martin","status":"publish","type":"post","link":"https:\/\/www.themorganreport.com\/blog\/october-interview-with-ellis-martin\/","title":{"rendered":"October Interview with Ellis Martin"},"content":{"rendered":"

\u00a0<\/strong>
\nEllis Martin<\/strong>: <\/strong>We\u2019re joined now by the silver guru, David Morgan, of The Morgan Report<\/em>. David, welcome back to The Opportunity Show<\/em>.
\n\u00a0<\/strong>
\nDavid Morgan<\/strong>: <\/strong>My pleasure, <\/strong>Ellis.<\/strong>
\n\u00a0<\/strong>
\nMr. Martin<\/strong>: How have the precious metals markets changed in the last five to ten years, David? \u00a0\u00a0
\nMr. Morgan<\/strong>: <\/strong>I think we can look at it kind of sector by sector, but I think one of the big things that\u2019s changed is the amount of interest in the markets. First, just look at the number of Web sites that are devoted to the precious metals today, versus how many were available when I started, say, ten years ago or so. In the silver arena there was Ted Butler, Frank Sanders, and me. I\u2019m sure there were other people, but as far as fairly well known personalities, we were \u201cit.\u201d Today, you have many, many people in the sector. In fact most of them who have come up strongly, I know personally: Sean Rakhimov at silverstrategies.com; Kenny Parsons, Silver Bear Caf\u00e9; my friend Mike Maloney, goldsilver.com. . . . And Jason Hommel has come on; he was one of my early subscribers, as a matter of fact. So, a lot more interest in the sector, a lot more Web sites devoted to the sector. That is just one area that significantly shows increase in not only knowledge but interest in this area.\u00a0 <\/strong>
\n\u00a0<\/strong>
\nMr. Martin<\/strong>: <\/strong>You really stand out amongst that group, though. You\u2019ve received a lot of press lately. How do you account for that, without sounding self-indulgent?
\n\u00a0<\/strong>
\nMr. Morgan<\/strong>: <\/strong>Well, staying on the theme about what\u2019s changed in the last several years, it\u2019s again interest in the market. The aspect I just mentioned, Web sites, is really one of the smaller arenas. The big arena is the metal itself. This is where you\u2019ve seen the advent of the ETFs that have come on to the scene here in the last several years\u2014primarily the gold ETF initially, and then there was some quandary about whether there would be a silver ETF. I wrote several articles (silverinvestor.com archives), expressing that whatever is good for gold is good for silver, that eventually a silver ETF would exist. Lo and behold, there\u2019s not only one now, there are several.
\nSo this has brought a great deal more buying pressure into the market, because most of the fund managers or managed money in the ETFs are restricted from buying the commodity. If you\u2019re managing money, your mandate is that you can buy any stock out there. But, in fact, there are certain limits on the stocks that you can buy. You can\u2019t buy a lot of penny stocks in most cases. Any stock that meets particular criteria you can buy, but you cannot buy anything in the futures markets. And since the ETF is basically a commodity that trades as a share, you\u2019ve now got a huge interest in this market and that has definitely brought a lot more attention to the gold and silver markets. \u00a0\u00a0
\nSo how do I stand out? I think that there are always people on these financial channels looking for input and I\u2019m one name among many that\u2019s recognizable. I\u2019ll get a phone call inviting me to appear on a show, be interviewed, or whatever. I\u2019ve been at it for a while, and that\u2019s created some name recognition for me and I\u2019m glad to get the publicity, but there are several of us who do this, and that\u2019s great. I appreciate your comment, Ellis, and I do work very hard as you know, but there\u2019s a lot of good stuff and several sources to choose from. The truth of it is that all of us in the industry pretty much read each other\u2019s work. I read several of the other writers and sometimes they spawn new ideas, sometimes they don\u2019t, and sometimes they\u2019re contradictory to your thinking. You know, that\u2019s all good. It all makes the world go round and helps to sharpen my thinking. I welcome all of it.
\n\u00a0<\/strong>
\nMr. Martin<\/strong>: I\u2019m a retail investor . . . I\u2019m taking a look at the silver ETF, I\u2019m taking a look at silver bullion, and I\u2019m looking at silver stocks. Aside from possibly investing in all three, how would you help me make my decision without telling me what to do, David?
\n\u00a0<\/strong>
\nMr. Morgan<\/strong>: <\/strong>My thinking is very simple. The first thing I want out of my investment in this sector is something that I feel stands alone outside of the system. The only things that do that are coins in hand or bullion in hand. So my first purchase, and I recommend it from the start, is to have the physical gold or silver in hand.
\nOnce that\u2019s accomplished I like to see some safe leverage, if there is such a thing. Whenever there\u2019s leverage involved it means higher risk and that\u2019s a fact. But I have learned during the thirty years I\u2019ve been doing this that the best risk-to-reward profile is actually in the top tier, cash rich, unheard mining shares. As long as you do it for cash\u2014in other words, buy the shares without margin\u2014you\u2019re pretty safe. Not that these prices don\u2019t go up and down, but you get sometimes equal leverage to a futures account without the risk of a futures account, where you put up minimum margin and as soon as the market goes against you, you get a margin call. So I like the mining equities. I divide them into two sectors: top tier companies, where we put serious money for serious companies; and speculative, where you put in a little money to win a lot. That\u2019s how I have advocated investing or speculating in the sector from the get-go, and I continue on that theme.\u00a0
\nOn the ETFs, I\u2019m neutral to positive on them. I mean certainly this is more of a realm for the institutional investor, the hedge fund manager, or very, very wealthy retail clients. I don\u2019t think it\u2019s the best choice for your average investor, although it\u2019s a very easy one because it\u2019s a stock and you can just click your mouse (if you have an electronic trading platform) and buy or sell the shares. So from a liquidity standpoint, they\u2019re excellent. But I don\u2019t think that would be my first choice.
\nMr. Martin<\/strong>: It\u2019s not necessarily your choice of highest return in the long term, is it?\u00a0
\nMr. Morgan<\/strong>: No. I think the highest return that can be proven so far in this bull market has been in the mining equities. However, if you did it right, the highly leveraged options or futures market can certainly make a great deal of money in a very short period of time.
\nWe had Silver Standard recommended when it was under a dollar; it\u2019s been as high as $40.00, and now it\u2019s in the $20.00 range. So if you bought Silver Standard at $20.00 a few years back, you watched it go down to about $5.00 last November then back up to $20.00 now, so you\u2019re even. Pan American was under $2.00, and it\u2019s done about the same as Silver Standard. Many of these stocks have had huge gains. The problem is that a lot of people came into the sector, and for the last couple of years these stocks have been basically flat.
\nThese markets climbed a wall of worry, all global markets do. There are these long pauses or hesitations, what I like to refer to as consolidation periods.\u00a0 Once those consolidation periods end, and I believe we\u2019re ending now, you get ready for the next leg up.
\nMr. Martin<\/strong>: We\u2019ll continue our conversation with the silver guru, David Morgan, in the next segment.<\/p>\n","protected":false},"excerpt":{"rendered":"

\u00a0 Ellis Martin: We\u2019re joined now by the silver guru, David Morgan, of The Morgan Report. David, welcome back to The Opportunity Show. \u00a0 David Morgan: My pleasure, Ellis. \u00a0 Mr. Martin: How have the precious metals markets changed in the last five to ten years, David? \u00a0\u00a0 Mr. Morgan: I think we can lookMore<\/a><\/span><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[121,89],"tags":[],"yoast_head":"\nOctober Interview with Ellis Martin<\/title>\n<meta name=\"description\" content=\"October Interview with Ellis Martin\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.themorganreport.com\/blog\/october-interview-with-ellis-martin\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"October Interview with 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