Morgan Report: Silver Could ‘Get Smoked’ Below $18 Founder anticipates supply shortage

During the past day and a half, the value of an ounce of silver has decreased by 2.33% relative to the value of the US dollar, while the price of gold has remained above $1,750 an ounce. Since March 8, 2022, or 165 days ago, the value of silver has decreased by more than 28% in comparison to the dollar. David Morgan, the founder of The Morgan Report, believes that there will be a supply constraint in the silver market despite the recent price declines. Morgan is of the opinion that in ten years' time, silver will be one of the top investments of the decade.

“The Industry Side Just Might Take All the Silver,” David Morgan Confirms

The majority of investors' attention over a significant portion of 2021 and the second half of 2022 was concentrated on assets such as gold and bitcoin. On the other hand, silver is not performing as well, and spot silver prices as well as equities of silver mining companies are not doing well in the S&P 500.

The so-called “silver squeeze” was reportedly started in February 2021 by an unknown organisation on the Reddit community known as r/wallstreetbets. Bitcoin.com News reported on the event. During that week, the price of an ounce of silver in US dollars increased by more than $30, and several retailers of precious metals reported that they had run out of stock.

In 2022, the price of one ounce of pure silver reached an all-time high during the second week of March, reaching $26.46 per ounce. On March 8, 2022, the price of gold per ounce reached a new all-time high, trading over the $2,070 area for the first time ever.

Since March 8, its price has decreased by more than 28%, and it was trading at $19 an ounce on Saturday evening (EST) on the 20th of August, 2022. Despite the enormous losses, David Morgan, founder of The Morgan Report, predicts that the supply of silver will plummet within the next ten years.

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Silver per ounce hovered around $19 this weekend.

On the 19th of August in 2022, Morgan had a conversation on the price of silver with David Lin, host and producer of Kitco News. Morgan suggested to Lin in a video that was uploaded to YouTube on Friday that there may not be enough silver available in the years to come. The Silver Institute forecasts that the global demand for silver will hit a new high of 1.112 billion ounces in the year 2022, breaking the previous record set in 2017.

“[USGS] indicated that silver would be the first element on the periodic table to be in very limited supply, and that was a few years ago,” adds Morgan. “[USGS] said that silver would be the first element on the periodic chart to be in very short supply.” “It is quite likely that just industry will consume all of the silver that is available at some point in time.”

Analyst of precious metals further stated:

I AM UNABLE TO CONCEIVE OF ANY INVESTMENT THAT WOULD BE BETTER THAN SILVER INVESTORING IF YOU HAVE A LONG TERM, SUCH AS TEN YEARS OR MORE. THE SILVER WILL SHINE AT SOME POINT; HOWEVER, IT WILL MOST LIKELY TAKE AN ANGLE THAT IS NATURAL TO IT… THE NATURAL ANGLE IS REACHED WHEN THE INDUSTRY ITSELF HAS SUCKED UP ALL OF THE AVAILABLE SILVER AND THERE IS NOTHING LEFT.

FX Empire Analysts and Traders Have Identified Several Gaps in the Silver Futures Market, and They Anticipate a Great Deal of Downward Pressure.

On the other hand, the precious metals expert at fxempire.com, Christopher Lewis, forecasts that the price of silver will go below $18 per ounce in the near future. Lewis stated that there is a gap in the market for silver futures, and he is confident that the gap will be filled in the relatively close future.

“At this juncture, it seems as though we are about to close the gap, possibly down to the $18.50 level. In the event that we are successful in doing so, then the level of $18 is noteworthy as well due to the fact that it is a large, round, psychologically significant figure as well as a region where we've seen a lot of support in recent times. The following is more from Lewis's technical analysis report:

ULTIMATELY, THIS IS A MARKET THAT, IN MY OPINION, CONTINUES TO SEE A LOT OF DOWNWARD PRESSURE, AND IF WE CAN BREAK BELOW THE $18.00 LEVEL, IT MIGHT START THE NEXT BIG MOVE LOWER. [CDATA[IF WE CAN BREAK BELOW THE $18.00 LEVEL, IT MIGHT START THE NEXT BIG MOVE LOWER IN THAT SITUATION, IT IS QUITE POSSIBLE THAT WE COULD VIEW SILVER AS BEING VERY SMOKY.

Morgan Denies There Is a Replacement for Silver

In the interview, Morgan mentioned that silver is frequently obtained via the mining of base metals and predicted that the supply of silver from this industry will also decrease. According to Morgan, who was speaking to Lin, “seventy percent of silver is the result of mining the base metal – If it's down, and if it's down dramatically, then it's taking a lot of silver supply off the market.”

A survey that was published earlier this year predicted that the demand for silver would increase by 5% this year, and that the demand for jewellery would increase by 11% in 2022. Silver's performance as a safe-haven asset has been disappointing, despite the fact that the macroeconomy has been unstable as a result of war and inflationary pressures around the world.

In point of fact, during the pandemic of 2020, Donald Calcagni of merceradvisors.com issued a critical report regarding the reality that “silver has not been a consistent hedge against inflation or a steady and reliable store of value.” This year, the same thing has been said about gold, which research reveals has a “very minimal link to inflation.”

Additionally, Bitcoin (BTC) has a poor correlation to inflationary pressures, and evidence suggests that by the year 2022, the leading cryptocurrency asset will have developed a correlation with stocks. During an interview that took place on Friday with Lin, Morgan expressed his belief that purchasing silver could prove to be one of the most profitable investments of the decade.

The precious metal specialist believes that there will always be a demand for silver in the industrial world. During the course of the interview, Morgan stressed the fact that nothing conducts electricity as well as silver, as well as the fact that nothing reflects light as well as silver. “The majority of uses for silver are among the most significant and indispensable in the world. There is no alternative to it.”

What are your thoughts on the huge reduction in the price of silver that has occurred since March 8 and its current plunge over the past 24 hours? What are your thoughts on the prediction that David Morgan made about the value of silver in the future? Share with us in the comments section below what you consider to be the most important aspects of this topic.

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