In a recent Money Metals Exchange podcast, host Mike Maharrey interviewed renowned precious metals analyst David Morgan, who shared his insights on significant global financial issues, particularly those surrounding the recent BRICS Summit, precious metals markets, and the rise of central bank digital currencies (CBDCs). Morgan, author of The Silver Manifesto and publisher of The Morgan Report, approached these topics with a blend of skepticism and cautious optimism, particularly regarding the BRICS Summit held in Kazan, Russia. While the summit generated considerable media attention, Morgan emphasized that it largely consisted of rhetoric without substantial progress. He humorously likened Russian President Putin’s display of a mock currency to promotional gimmicks, pointing out the challenges BRICS countries face, including the overwhelming dominance of global debt in U.S. dollars and the absence of a viable alternative currency. His analysis suggests that for BRICS to succeed, greater currency diversification is essential, though he acknowledged that a BRICS-backed precious metals exchange could potentially disrupt traditional price-fixing mechanisms.
Maharrey and Morgan further discussed the diminishing influence of the U.S. dollar on global trade. Morgan indicated that while a decade ago, the dollar represented 68% of global trade settlements, it has now decreased to 58%. He pointed out that this declining dominance could lead to significant changes, particularly as other currencies begin to participate in energy markets that were previously tied to the petrodollar. Though Morgan does not predict an immediate crisis for the dollar, he recognizes that ongoing trends could reshape global currency dynamics. He theorized that any long-term changes would likely involve a shift towards a global currency system or a network of digital systems that adhere to standardized protocols like ISO 20022.
The conversation turned darker when discussing CBDCs. Morgan expressed profound concerns over the potential threats they pose to individual privacy and the likelihood of increased government surveillance. Recollecting a meeting he attended in Beijing involving the Rockefellers and Chinese banks, he highlighted China’s advanced digital currency and social credit systems as a model that could have global implications. Morgan warned that private banks, such as JPMorgan, might issue government-sanctioned digital currencies, which would circumvent many legislative hurdles. Maharrey echoed these concerns, emphasizing how consumer-level CBDCs could lead to serious abuses, such as intrusive transaction monitoring and the worrisome ability to disable accounts at will.
In terms of silver and gold markets, Morgan provided an analysis of recent price trends. He noted that silver experienced a high near $35 before retracting to $32.87 and believes that the metal could reach $40 by 2025, provided the market remains stable and no unexpected disruptions occur. He underscored that $32.50 acts as a critical support level and that falling below this threshold could indicate market weakness. When asked which milestone was more likely first, $3,000 gold or $40 silver, Morgan leaned towards gold. He underscored the central banks’ strategy regarding gold as a defensive reserve asset, indicating their growing inclination to stockpile gold rather than positioning currencies directly against it.
Morgan elaborated on the current high gold-silver ratio, which is currently in the 80s, a significant shift from historical norms that previously saw the ratio around 20 before silver was demonetized. While acknowledgments of silver’s diminished monetary role are prevalent, Morgan remains hopeful that silver will regain some monetary appeal as societal interest in alternatives to CBDCs and digital currencies increases. Furthermore, when discussing Russia’s announcement to incorporate silver into its wealth fund, he exhibited cautious optimism. He remarked on the strategic importance of silver, especially in technological and military applications, and contrasted the East’s long-term strategic approach with the West’s more immediate financial focus.
As the episode drew to a close, Morgan turned to the upcoming U.S. presidential election, noting that although historical patterns suggest precious metals perform better under Democratic leadership, broader macroeconomic trends—including developments from BRICS and the potential influence of ISO 20022—are likely to carry more weight than election outcomes. He encouraged listeners to remain informed and engaged, promoting his mailing list for The Morgan Report and teasing his upcoming documentary, SilverSunrise, scheduled for Christmas release. Morgan reiterated the notion that "honest money is tied directly to freedom," expressing a deep concern for individual financial sovereignty amid increasing levels of governmental financial oversight. This theme resonates throughout his insights, emphasizing the importance of remaining vigilant against encroaching control mechanisms in a rapidly evolving financial landscape.
