(Money Metals News Service) On a recent episode of the Money Metals podcast, host Mike Maharrey sat down with David Morgan, founder of The Morgan Report and author of The Silver Manifesto.
David Morgan’s book, The Silver Manifesto, was recently listed among the top 5 books on sound money for 2025.
The conversation spanned a variety of topics, including the impact of the current political climate on precious metals markets, tariffs, economic challenges, and strategies for investing in metals.
(Interview Starts Around 4:10 Mark)
The discussion began with an analysis of how the “Trump 2.0” administration might influence the gold and silver markets. Morgan explained that recent signals from the administration, including the possibility of tariffs on imported metals, have already caused disruptions in the market. Metals previously flowing freely from the London Bullion Management Association to the U.S. are now being expedited to avoid potential tariffs, leading to a squeeze in supply.
While premiums on retail metals like Silver Eagles have decreased—falling from $14 to around $2.75—Morgan described a bifurcated market where the wholesale physical market remains tight. This divergence, he suggested, underscores the complexity of current market conditions.
Tariffs: Inflationary or Beneficial?
Morgan and Maharrey debated the broader implications of tariffs, with Morgan noting that while tariffs may initially seem like a fair way to level the playing field, they often disrupt the economy.
Drawing parallels to the Great Depression, Morgan warned that policies like the Smoot-Hawley Tariff Act exacerbated economic downturns by increasing costs globally.
Morgan noted that tariffs on precious metals could directly lead to higher gold prices. For example, a 10% tariff on gold priced at $2,700 per ounce would add $270, a cost ultimately borne by consumers.
The Debt Problem: A “Math Problem”
Turning to broader economic issues, Morgan emphasized that the U.S. debt crisis transcends politics. Whether under Trump or Biden, he argued, the fundamental issue remains: Medicare, Medicaid, Social Security, and military spending constitute the lion’s share of government expenditures. Even with policy tweaks like raising the retirement age or freezing pensions, Morgan suggested these measures merely delay the inevitable.
Maharrey agreed, adding that geopolitical tensions make it unlikely that military spending will see significant cuts anytime soon. Both commentators stressed the need for systemic reforms rather than superficial adjustments.
The podcast delved into the pros and cons of various investment vehicles for precious metals. Morgan emphasized the importance of starting with physical metals, such as gold and silver coins or bars, which provide tangible wealth and anonymity. While premiums on physical metals vary, Morgan noted that they often average out over time.
He also discussed exchange-traded funds (ETFs), which provide a convenient way to gain exposure to metals without the need for physical storage. However, Morgan expressed concerns about the lack of transparency in some ETFs, questioning whether their physical holdings are used as collateral or double-counted.
For those interested in leveraged exposure, Morgan highlighted mining stocks. While mining companies often offer higher returns during bullish markets, he cautioned that this sector requires careful research due to risks like operational inefficiencies and inflationary pressures.
Lessons from History: Gold Confiscation and Honest Money
The conversation also touched on historical events, including the 1930s gold confiscation in the U.S.
Morgan noted that while such a scenario is unlikely to recur, mining stocks could provide an alternative form of gold exposure in such a case. He argued that an honest money system—backed by precious metals—would restore economic freedom and integrity, values he sees as eroding in the current system.
Key Takeaways for Investors
Morgan concluded with practical advice for precious metals investors:
- Start Small: Build a physical metals position gradually, using dollar-cost averaging.
- Diversify: Consider mining stocks and ETFs, but only after establishing a core physical position.
- Be Informed: Understand the dynamics of the metals market and avoid overexposure to any single asset class.
Closing Thoughts
As Maharrey wrapped up the discussion, he praised Morgan’s expertise and commitment to educating the public about honest money. Morgan, in turn, shared his larger mission: promoting truth, integrity, and economic freedom through his work in the precious metals sector.
Listeners were encouraged to explore resources like The Morgan Report and Morgan’s upcoming documentary, Silver Sunrise, for deeper insights into the world of precious metals investing.
The conversation underscored the importance of staying informed and proactive in uncertain economic times, particularly for those seeking to preserve wealth through tangible assets like gold and silver.
Key Questions & Answers
The following are the key questions and answers from the Money Metals podcast with host Mike Maharrey, and precious metals analyst and macroeconomist David Morgan:
How is the Trump 2.0 era expected to impact the gold and silver markets?
David Morgan noted that the Trump administration’s indication of potential tariffs on imported metals has already caused market disruptions. Metals are being shipped from London to the U.S. to avoid tariffs, creating a supply squeeze in the wholesale market. At the same time, retail premiums on products like Silver Eagles have dropped significantly, illustrating a bifurcated market.
Are tariffs inflationary, and how do they affect precious metals?
Morgan explained that tariffs generally lead to higher prices, as the costs are passed on to consumers. For example, a 10% tariff on gold priced at $2,700 per ounce would increase the consumer price by $270. While tariffs may seem like a way to protect domestic industries, they often disrupt economies, as seen during the Great Depression with the Smoot-Hawley Tariff Act.
How does public confidence in the economy influence precious metals demand?
Morgan suggested that during Republican administrations like Trump’s, investors may feel more optimistic about the economy and less inclined to buy precious metals as a hedge. However, he emphasized that underlying issues, such as national debt, persist regardless of political leadership, making metals a long-term safe haven.
What are the key issues with U.S. debt, and can they be resolved?
Morgan described the U.S. debt problem as a “math problem” rather than a political issue. Programs like Medicare, Medicaid, Social Security, and military spending dominate the budget, leaving little room for meaningful cuts. Political adjustments, like raising the retirement age, may delay the issue but fail to address its root causes.
What are the benefits and risks of physical precious metals?
Physical metals provide tangible wealth, anonymity, and a hedge against inflation. While premiums vary, they average out over time. Morgan emphasized starting with physical bullion as the foundation of any metals investment strategy.
How do ETFs compare to physical metals?
ETFs offer an easy way to gain exposure to metals without the need for physical storage. However, Morgan expressed concerns about transparency in some ETFs, questioning whether their physical holdings are double-counted or used as collateral. He recommended using ETFs only after building a core position in physical metals.
What are the advantages and risks of mining stocks?
Mining stocks can provide leverage to rising gold and silver prices, offering higher returns during bullish markets. However, they also carry risks, such as inflationary pressures and operational inefficiencies. Morgan highlighted the importance of careful research and diversification when investing in this sector.
Could gold confiscation happen again?
Morgan considered gold confiscation highly unlikely but noted that mining stocks could offer indirect exposure to gold in such a scenario. He argued that silver is too undervalued for confiscation to be worthwhile, as it represents a negligible portion of the financial system.
What practical advice did David Morgan offer for precious metals investors?
Morgan advised starting small, using dollar-cost averaging to build a physical metals position gradually. He recommended diversifying into ETFs or mining stocks only after establishing a foundation in physical bullion. He also emphasized the importance of staying informed and tailoring investments to individual goals and circumstances.
