The demand surge of silver has completely overwhelmed the supply, and orders are not able to be filled now, said David Morgan of TheMorganReport.
David Morgan of the Morgan report is here to talk about server today. David, we tell investors can't even buy silver bars and coins right now. The physical demand right now is so high. There's no supply. Well, you already answered your own question, David. Yeah. There's so much demand that it can't be filled and uh, you know, it's going to be back ordered.
It'll be my question. Why is her so much to man right now? Well, it's a combination of things, but primarily it's this wall streets bet group that proved that if there's enough buying power, that can take out these short sellers, nothing has been sold short, stronger and longer than the silver market. So somebody in that group or somebody in that group to my understanding said, Hey, let's get to the silver market.
What's interesting about the silver market. Is this not a stock, so you don't need a brokerage account. All you need to do is phone up kid, go and place an order. So there's no, you know, double-checking, they're waiting a week for your paperwork to clear and you can have an account, but he's call up and say, I want to buy some silver.
When they call up Zuora to buy some silver, say, that's fine. It's going to be, you know, I don't know what it is. I won't miss quote your David, but kit may say four weeks, six weeks, eight weeks. I don't know. We've seen this before it happened in the, uh, And the 2008 financial crisis, this is silver hit about nine bucks to new pain.
About 13. It was like a 30% premium on most silver retail products, but it was a silver retail product shortage, not a silver shortage. The silver market is quoted on commercial bars. We're not short of commercial bars yet, but there was such a demand for commercial bars for big investors, because they look at a.
Thousand ounce bars, the way, you know, big investors look at a hundred ounce bars. It's just a bar of silver. I'm going to buy this. Many of them. It was over like 300 million in the SLV last year. This is unprecedented. There's nothing been nearly that much investment demand for commercial bars ever that I know of.
And so now we're seeing this wall streets, group Reddit, all the chat rooms. I mean, basically the silver market's on fire and social media. People that were never aware of it or have given up on it or never thought about it. And so you've got this kind of adjunct group, David, this group of people that got burned into 2008 financial crisis got hurt in the stock market crash.
They lost their pension, they got kicked out of their house and now they see a way to buy silver and kind of. Okay. Even if you might think of it by buying something that's real and, uh, it's easy to do. So there's a huge demand right now. And how long will it last and how probably won't do no one knows.
Here's what, I don't understand this, the short squeeze and silver didn't start today. It started a few weeks, sorry. A few days ago. And of course today is sort of an escalation of what's already been happening, but. If you can, if you make parallels to GME the stock game, stop AMC. You know, if, if we're making the assumption, it's the same crowd of people.
The wall street better is pushing it up. Well, those stocks went up 10 times more than that. 10, 20 times in a matter of a week, silver didn't move nearly as much. In fact, today, as we speak right now, since the 6:00 PM Eastern time open, it's only up about what two bucks. So I don't know if you made that assumption.
You'd be disappointed at Silver's price right now. Are you surprised that it didn't move up anymore? Not at all. I mean, I spoke with someone that was intimate with the hunt brothers. He called me, I've known him for years. We don't chat that often. And he asked me what I thought about all this. And we both agreed that, you know, I believe and could prove and wrote in the book, the silver manifesto, all markets are manipulated, but silver, probably more than any other.
And, uh, we agreed on this phone conversation that. You know, you're going against some pretty tough people when you're going against the professionals on wall street, that's short stocks, but when you're going against the master manipulators of all time, which the silver shorts you're up against the greatest sharks out there doesn't mean it can't be done.
The Hunt's proved to can be done. All they did was by physical and futures. And I'm going to interrupt you, but who are these greatest shocks out there? Well, we don't know exactly. It's basically the plunge protection team. You could look at the work that God has done, which would poly do, you know, more deep dive in and I can do off the top of my head, but it's basically the working group.
I financial markets, it's the head of the sec and the CME, the CFTC, the, and all these, you know, entities. And most of them are. Doing a job that their job description would be to protect us. But really it is to not protect us. It's to protect the big money interests of wall street, not the investing public.
So that's been turned around by this wall street bets group and people are starting to wake up and see, it's not just the precious metals that have been suppressed like this it's basically almost anything you want to name GME being a prime example. David. I asked this to a few other guests already, and I'd like to get your opinion.
What if we had to push silver, the futures market up 10, 20 times, like GameStop and AMC. What needs to happen on the demand side? How much more volume do we need to see in the market right now? No one knows. I would say if we doubled what we saw last year. So in other words, first of all, no one sells you can't have any selling pressure.
What, whatever. Okay. So everyone that owns it now is waiting for delivery holds. Now on top of that, if you got somewhere in the two 50 to three 50 million ounces, what we saw and go to the SLV last year, I know it's selling at the same time. I think that'd be enough. I think they're markets that tight.
Obviously the retail markets that tight, how tight is it in the silver market, the silver commercial bar market right now, all the Boolean banks only have about 150 million ounces that's in the registered category. So if we double that to 300 million, they take everything off of what they own. In their name, you know, so I think that'd probably be enough.
It's pretty small amount, but what will happen? I mean, we've already had a precursor several times, David, we saw what happened to the hunt brothers who changed the rules. The rules already exists on the comb exit. You can only take 1500 contracts in any delivery month, which is only. 7.5 million ounces of silver.
Now, Craig hemp has done some good work there drilled down because there have been delivering months that have gone over that amount. The last thing to come X wants to do is default, but by their rule book, they never can because by their rule book, they'll just say, look, it says, in the case of a forced mature, you have to settle in cash.
We settled in cash. We did not renege on the contract. That's the paper regain you're playing ultimately in the paper game. If it gets to the point of no return, they'll give you paper for paper, but they won't be able to deliver silver. That's what we're shooting for. If that were to happen, I'll just finish quickly.
You'll go to a cash market. I mean, we used to have a milk on the futures, exchange eggs on the futures exchange. We have a milk and egg market. Today's a cash market. It's a free market. More or less that you just, you need the eggs, you need the milk. What are you going to buy today? You're going to pay this amount.
Okay. Deal done. The retail market. That's pushing the stocks. Well, the price up now, this market, are they, are they moving into the paper market, the futures, or are they moving into the physicals? Because there, there is a difference here. What do you think is going on? Absolutely. A difference going across the board, the big minus, going to the SLV, there was like, I think it was 35 million ounces priding.
That's a lot. That's one 10th of what took place all year. Last year in one day. And last year was 300, 350 million ounces. I don't know the exact numbers and silver studies on out yet, but the still ramps have to kind of leap the number. So I'm using their number. So that's unprecedented. I mean, just think of that went 10 days in a row, David, you'd be looking at the highest amount of silver deliveries ever.
Last year 2020 with some clear vision in the silver market taking place again this year, which I think looks like it's possible. Now you've got a problem. You're not going to be able to make good on all that silver in physical form and derivative form, et cetera. Limited, you can make as much paper silver as you want.
And as long as people are satisfied with paper silver, if the game could continue on indefinitely. Okay. Now here's what I'm wondering. Uh, right now there's a lot of demand. Brokers, bully and dealers are unable to satisfy their demand. Their inventory is just not there. I wonder if what we're seeing right now, 29 Oh nine latest reading, the latest price I have on my screen.
I wonder if that's the fair value of silver right now, assuming that there's no demand physical. Sorry. If assuming there's no physical supply in dealers inventory. Yeah, it's a great question. I'll give you my answer. Remember, I'm a bit bias. I'm really pro you know, precious metals, but what will happen if this continues on for weeks is that commercial bars will be turned into physical rounds or other products.
For example, here's an example for me, myself and I that's a, a half ounce silver round that I had mentored by, uh, a mint. For myself, my old website, before the Morgan report.com, that's $9 silver. I bought commercial bars off the exchange, shipped it to my mint master friend. He turned me into rounds and it cost me about 50, 60 cents for each one of those.
But, uh, you know, I paid what, 10 bucks an ounce instead of 13 at the time. So that's what will happen if. The demand stays there if, uh, so it really, it comes down to my thinking. If there's conviction behind his market, are we just looking to run the stops the other way we're looking to take care of the shorts.
And teach them a lesson or are we in this for the long haul with conviction price action right now as of 6:52 PM. It's gone down actually. So what was that? 29 bucks now it's at 28. So it just went down 90 cents since we spoke, uh, two minutes ago. So, uh, there's a lot of volatility up and down. It looks like it's on the downside right now is $30 a resistance level.
You think? Yeah, there was a lot of silver after the peak in 2011, that hit about 50. And there was a lot of silver trading around the $30 range for about a year. So there's a lot of people that are stale. Longs are called. This is from 2012. And when silver gets back to 30, they're willing sellers. It's like their wives has been on their back.
Why do you ever buy silver 30? Oh, it's never going to get back there. Oh, wait a minute. It is back at 30. I'm going to sell it, you know, so there will be some overhead resistance. I don't think it'll be last that long. It could go a week. It could go a month. I don't know the market knows, but I don't think there's a lot of people at that level right now that are, you know, on the internet.
They're going to want to sell it even if they are just breaking, even because any buying pressure beyond 30, there's not much upside resistance. Which means any new buying pressure, even if it's small will drive the price. Higher problem is there's so many derivatives in the, in the silver industry.
There's so much, so many ways to take an ounce of silver and divide it. And fractionalize it. And high profit created. Hypothecating a lot of people that own silver and got these pretty certificates and have had it in a warehouse forever. And I'm going to say soon, stay warehouse. Think about the Comix is there, but some other let's say.
Uh, other places and they're safe and secure and all they really have is a paper certificate because they really don't own the silver. And then fortunately silvers in size candy, bulky, relative to gold. So you have a lot of, let's say paper, silver, that really doesn't exist physically. And that's a shame because we really want an honest market across the board in all markets, not just the silver market stock market.
You know, commodities market, the housing market, any market, we want fairness. Okay. Um, you know, right before we were speaking, I'll tell you what I was doing. I was playing online chess with my friends. Okay. And then I got I, then I went on the call with them. I said, look, I gotta stop this game. I got to go to work and talk about silver because silver market's about to blow up.
This was a couple hours ago and I'm like, really what's happening. Should I buy silver? Should I buy silver? I don't have an answer to that, guys. I'm going to ask the experts. I'm going to ask them if we should be buying a silver right now, I'm going to wait for the price to open at six o'clock and then I'll let you know.
So. What what's the answer? Should they be buying silver right now at these levels? Yeah, I think it's okay. I would say, you know, it depends what happens to the future. No one knows I've studied monetary history as much as a lot of people, more than most. And I'd say anything to 30 or under, you're probably safe.
Long-term. I'd say very long term, probably anything under 50, uh, what's the monetary reset takes place and no one knows exactly how that's going to look. I think the pre precious metals will be revalued. If you look at Jim Ricards, which is a pretty strong thinker in this area. He did a interview recently quoted I think $15,000 gold.
So, I mean, if you gave a one, the 15 to one monetary ratio, they'd give you a thousand dollars. Silver. I'm not saying it's going to the monetary ratio, but I'm just suggesting that if you had $15,000 gold and he says that over and over, I'm not, I'm not even agreeing with him, but his math is correct. Then you can think about where we're silver B and he doesn't say 15 thousands, you know, Out a hundred years, he's talking about, you know, fairly near term.
Well, I guess my friends are kind of worried about their short-term, um, short term price movement. We saw you saw what happened with the GameStop and AMC. You kind of hit a resistance level while they both hit some sort of resistance. And I wonder if the same thing could happen to silver, you know, once we've, we've seen this action right now, Uh, what's the next step in the next, um, uh, what, what makes sense to you is, is, yeah, that's hard.
I mean, I wish I knew I'd love to know. I mean, I don't have an order in myself and my dealer called me. He goes, it might jump three bucks. I was thinking it could hit 30 on the open, you know, go from 27, whatever it closed and bang it's up two or three bucks. I said, I'll put a limit 30, if it's over 30, I don't want to buy it.
But what could happen is. The commodities market trades a lot different than the stock market. And so the ability to take on these shorts, even though it's more heavily shorted than the stock market, you know, the, I think it was game stock was 140% and the reason it's over a hundred percent, you could have options.
So it can make it more than a hundred percent Silver's way beyond that. But. How many people are going to take those thousand ounce bars off exchange and really forced the issue. And the answer is to be determined. We don't know the retail market could make it happen. As I said earlier, if they have conviction that they're going to have to wait for those thousand ounce bars to be turned into retail.
Okay. Uh, final question. Now you talked about silver BB Achilles heel of the financial system, way back 2012. What is that all about? What do you mean by that? Well, you know, the old adage he who owns the gold makes the rules and for the large part of the, the old financial system and probably something to do with the new one.
Gold is going to play a part, but central banks own most of the gold or more than 50%. There's no real central bank exposure to silver. It's truly is the people's money. So if you believe what I believe that money is power and money is control, and you want to have control of your life, especially your financial life.
You would dive into the silver market because that's the people's money and you have control of the banks don't so you actually could overpower the banking system with the Achilles heel. The fact that they don't have silver as a monetary asset, the people vote with their feet and say, yes, it is. And all of a sudden they've turned the tables on the financial system.
So kind of an interesting video, you might look at my, uh, Type it into, I guess, YouTube, uh, David Morgan. Silver is the Achilles heel of the financial system. What else can people go to follow your work? David Morgan report.com. Get on our free list of me making a video every day. This week I've committed to kind of get us through this first week.
See what really happens if it's a bunch of hot air or it's the real deal? I'm not sure yet, but it looks like it's right. Well, I bet either way. I'll bet you have a very busy week. I appreciate you. Uh, I know you have a very busy evening with your phone blowing up, so I appreciate you giving me your time tonight.
Thank you for coming on. All right, we'll talk again soon. I'm sure. David Lynn reporting for kiszko new stay tuned for more updates. .