Navigating Wealth with Gold and Silver: David Morgan Precious Metals Insights | S2:EP58

0:28Welcome back to Founder Story. to want to get into precious metals. That's a very long story, but I was 11 years old when the coinage in the United States went from 90 % silver coins to what we call the Johnson Slugs. That intrigued me. Never did I know I was 11 years old what I'd end up doing for a living, you know, years and years later. So that sort of set the spark. And so how did it continue as an adult? Well, when I started working for a living, I mean, my first paycheck was above what I signed a contract for. and I couldn't understand what was going on. I was a little scared that they'd overpay me.

1:02So I went to my boss's first check. I said, hey, you overpay me. I said, oh, no, no, see the silver here, this cola. See, you know, I don't grow a good cola. What's that? That's a cost of living adjustment. So the inflation era that I lived in when I got out of school really kind of made me very cognizant of how fast a dollar can depreciate. When I was two years into my first career job, inflation was growing at 13%. And so, inflation had been as low as 4 % and the wage and price controls were enacted. So, that just kind of woke me up to the depreciation of money, which led to my quest for why gold and silver are inflation-proof.

1:47And then when I got into the metals, I actually did quite well as a beginner and realized that your only protection during a very heavy inflation, not your only protection, but one of the best protections is precious. Well, obviously the last few years, inflation has been like the topic that everyone's talking about. So why do you think gold is important? And do you think because of what's been happening the last few years, is it just ever more important now? Well, what's important is a stable money supply. What's important is the value of a dollar or any currency that is going to purchase something for you so you don't want to lose.

2:28In fact, in a true gold coin standard or bimetallic standard, you get a general deflation. So if you're making$20 an hour when you start the workforce and you leave it 40 years later, that$20 an hour will actually buy you more, not less, after all those years. So that's the stability of money. Whereas once you become currency, it could be inflated away so for some people i think a lot of people don't really understand uh phrases that are being thrown out like i'm not sure if a lot of people even understand what inflation is can you explain what inflation is or inflation it is really misunderstood a lot of people what they think is inflation is the effects so hamburgers cost more grocery bills bigger, their email costs more, cars cost more, and that's the effect of it.

3:20But the inflation comes from inflating or increasing the money supply. So in a gold system, you have a fixed amount of gold and the money supply increases very slightly, maybe 1 % of the gold, which is basically nothing. But in a fiat currency system, you can inflate it by 10%. You can add trillions of dollars. We added as much currency in the system in three years than we did over 240 years. So that's kind of approaching the hyperinflation when you add that much. So I was just thinking about it like a glass of milk. The more you dilute it, the less... Hey, everyone. I'm not sure if you've heard, but when you realize you need to hire, it's usually already too late.

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5:28So check that out. iHeartRadio online or you grab the app. It's super easy. You can listen to all of our episodes wherever you enjoy your podcast. whether that's iHeartRadio, iHeartRadio app, Apple Podcasts, Spotify, and many more. But check it out. The less valuable it is or the less nutrients it has per ounce. And that's what happens in the money supply. The more you dilute it, the less purchasing power it has. And the effect is things cost more, but that's not inflation. Well, thank you for clarifying. So I know there's been record-setting purchases of gold. I've even been reading about how Costco has been selling gold.

6:06They're selling, I don't know. They say they're selling like$100 million in gold or something like that. I might be off on the numbers now, but why do you think this has been happening? Well, at the end of all these great inflations, people seek stability and they seek something that will have preservation of wealth. And that's gold and silver. And that's been that way basically for thousands of years. So because of that fact, as people wake up a little more and more, they gravitate to something that really has protection of their savings. Let's dive into silver, though. I don't always hear a lot about silver.

6:44I hear a lot about gold. How does silver compare to gold or what are you seeing when it comes to silver? Well, silver is a metal that has two basic properties. One is money and the other is industrial usage. And the industrial usage over time has continued to increase. In fact, I've heard numbers as high as 70 % of the silver market is for industrial use. I don't think it's quite that high, but it's definitely high. It's more than half. And silver has actually been mining more places for a long time than gold. Gold is usually for international trade settlements. Not always. I mean, you could buy, you know, stuff with a gold coin, but gold's worth so much per unit value.

7:27So an ounce of gold is$2 ,500, or an ounce of silver is like$30. So you could exchange silver for gasoline or food or clothing or whatever, whereas gold is high unit value. So both really work the best when you're on the fine metallic standard. Silver's undervalued as far as what it's worth in terms of gold or almost any commodity out there. The normal rate for a monetary asset in gold and silver, both its money, is about 15 to 1. The right out of gold and silver ratio is over 8. Wow. So if somebody is like, okay, I want to learn more information about all this. This seems very interesting. It's something I need to be at least aware of.

8:11Tell me more about the Morgan Report and why did you create that? Well, I started the website to educate people. And then we do specialize in ways to not only buy silver and gold with the, you know, probably lowest premiums anybody can find. The other things are education and then we have a private newsletter that works through the resource sector looking at gold, silver, and all the resource stocks, our uranium stocks. We've got lithium, cobalt, battery metals, copper, you name it, we pretty much examine in the resource sector and primarily do that through the equity side, although we do look at ETFs and other investments.

8:52I know people can go to themorganreport.com. What if they want to talk to you directly? Is there someone else, somewhere else that they could follow you on? The consultation tab on the website. So you can just pull that down to a half hour, an hour. If you are a paid member on the paid site, the consultations are half price.

9:17Thank you for tuning in to Founders Story. Keep exploring, keep dreaming, and join us next time for more inspiring entrepreneurial journeys.