Something Huge Just Snapped in London’s Silver Market… | David Morgan

Added: 2026-06-07

[00:00:00]And yet, you know, the MAGA, the this and the that, you know, I I do not like politics anywhere. I don't care it's the CCP, if it's, you know, whomever. I just don't trust the political class [music] at all. Nonetheless, we have to deal with it.

[00:00:16]Uh, if you would have told me when I was punching those cards, going to that great big huge building, our computer, that when I turned 60 or 65, you would have something in your pocket that was 100 times more powerful, maybe a thousand, but at least two orders of magnitude, if not three, greater than that whole computer science building when I was that age, I always say you're out of your mind. You can't do it. You couldn't scale that building down to something that big and have a hundred times the power. No way. And yet we all carry around a smartphone, a little computer. [music] So that's why I'm making this big long term. It's extremely important. I mean, if you look at monetary history from the wide lens, uh, as I've stated and many others, the real test of, you know, [music] I'd say a very good journalist is, you know, follow the money. We hear that, you know, if you really want to get to the bottom of the story, it's it's not the personality, it's not the political connections. I mean, those things can be important depending on the story, but really to dig deep, usually you got to find out all the money. You know, why did this politician do this? Oh, he's on the tape. It's paid off. Whatever. Point being is if you follow the money from a big macro picture, what you find is gold will tell you who the dominant empire is at the time. So if you go back before America rose to the top, [music] it was the great British Empire. And who had the most gold? It was the the UK. And of course, as they waned, America [music] grew. So after World War II in that time frame pre and post the gold amount into the US increased dramatically and then of course after the war you had the Brenton Woods and it was a basically dollar standard backed by $35 per ounce gold. So went from the UK had the gold most power then the US had the most gold [music] most power and now China has the most gold. I'm convinced even though their books might not say it directly, most gold and most power. And just taking gold out of the equation for a moment, if you look at it from the Austrian school, we don't think of money as [music] far as power per se. If you look at true capitalism in the Austrian perspective, it's means production.

[00:02:37][music] So, whoever produces the most is going to have a trade imbalance because you're producing all the stuff the world wants. So, money is going to flow your direction. So if you're the biggest producer and you're in the UK, well gold the gold gold comes into your country.

[00:02:50]If you're the United States and you're the biggest producer, then that money or gold flows into that country. And if you're the biggest producer and put out the most products and you're the, you know, real capital, which is producing things and you're China, you produce the most, gold flows into your country. Kind of simple. I want to keep it simple because sometimes these [music] things get offiscated by, you know, I mean, some of these finance books are ridiculous that they're, you know, equations [music] and they're all a bunch of huffy puff. They're not like engineering where you integrate a function and you know what every damn thing means. Excuse me for going off, but I have to rant a bit once in a while. [music] And so that's it, Mark.

[00:03:27]Um, it's that simple. So I think we're in a situation and I think a lot of the American political class is putting on this happy crappy face pretending that you know this mega shift in dominance on a world or global basis has changed and it has and yet you know the MAGA the this and the I I do not like politics anywhere. I don't care it's the CCP if it's you know whomever I just don't trust the political class at all.

[00:03:55]Nonetheless, we have to deal with.

[00:03:58]>> Throughout history, economic leadership has often coincided with large gold reserves. The British Empire dominated global trade during its peak, followed by the United States after World War II.

[00:04:09]Today, many analysts believe another transition may be underway. China's vast industrial capacity, export strength, and growing financial influence have fueled [music] speculation that global economic power is gradually shifting eastward. Whether measured through manufacturing output, trade relationships, or central bank gold purchases, China's role continues expanding. Investors increasingly view gold not simply as a commodity, but as a reflection of broader geopolitical and monetary trends shaping the future world order.

[00:04:40]>> I would say it could be. I want could in quotation marks, but I had a guy um called me on a consultation and he was like, I'm not going to buy silver because we're going to be out of mine after. And I explained to him what cut off grade means in the mining business.

[00:04:56]And so a cut off grade, you might have one of the richest silver mines in the world. But the cut off grade is 2 ounces, which you know today that's 140 bucks and that'd be a very rich mine.

[00:05:05]Why would you cut off economic silver 140 bucks? And the answer is because it's the bottom of the ocean. And uh until you get above 2 ounces uh per [music] ton, uh it's uneconomic because it cost you 140 bucks to dig it out of the ocean, put it in a submarine, take the submarine, [music] have it go from the submarine onto a ship, goes from the ship into a port, offloaded from the port into a truck, truck takes it to a refiner, refiner refineses it. Now it's economic because that $140 cost to get it to refinery has been eaten up with all of those [music] costs. So if the moon was made out of silver, it might is probably uneconomical.

[00:05:43]So now I said could and the reason I say it is because I don't want to be caught where my predecessor was. I mean Jerome Smith who very few people even know that name anymore. But he was pretty bright guy in my view and I learned a lot from him. But I also learned that all of us are human and can make mistakes. And one of his biggest mistakes about pricing silver was he assumed and it looked like a good assumption at the time was the most silver we would take out of the ground in any given year was about 350 million ounces and that was the most silver take out of the ground for 60 straight years. So if you got a database of 60 years, you got a pretty strong date, you know, argument. But on his last book, I think the what's behind the [music] boom in silver, I forget the name. I think that was it. He's saying, you know, silver would be worth 200 bucks by the mid1 1990s. And he might have been right if and only if the cap of mining was 350 million ounce ounces a year. But now we mind 850 million as you probably know. Mark, point being as soon as he published that book, the technology changed. And when the technology changed, a vast amount of silver production increased. So the production went up substantially. So I don't want to make the same mistake. you know, maybe there's a free energy source that you could take that free energy, uh, you know, [music] let's call it a space drone, and the space drone goes out there, cost you zero energy. It's got a big lasso, it lasses the asteroid, and it flies it back home [music] for no energy cost, and all of a sudden, you've got this great big asteroid full of tungsten, platinum, palladium, silver, gold, and uh, aridium. And now it's economic. So I'm being facitious to not be facitious. In other words, smart enough to know no one knows at all. And I'm also a little cautious of looking at the present and not thinking into the future of maybe what sound like remote possibilities, but nonetheless can't roll. I want to make that mistake. So hopefully you like that answer because right now it's preposterous to think that you can do it under current conditions, but conditions do change.

[00:07:51]You know, think about Sorry, I just got to digress for a minute, Monica. Thanks for your time. If you would have told me when I learned forran and was using hard deck cards to program a computer and I only had to take one computer science [music] course and I think I got a B minus in it. It wasn't my forte. But um if you would have told me when I was punching those cards going to that great big huge building with our computer that when I turned 60 or 65, you would have something in your pocket that was 100 times more powerful, maybe a thousand times, but at least two orders [music] of magnitude, if not three, greater than that whole computer science building when I was that age, I always said, "You're out of your mind. You can't do it. You couldn't scale that building down to something that big and have a hundred times the power. No way. And yet we all carry around a smartphone, a little computer in our So that's why I'm making this big to-do about maybe nothing but maybe something. So again, you got free energy. B go out and last through whatever you want and it's going to be economic to do it.

[00:09:00]>> One of the most fascinating debates in the resource sector centers on asteroid mining. The concept sounds revolutionary, harvesting precious metals from space to solve Earth's resource shortages. However, economics remains the biggest challenge. Mining isn't simply about finding metals. It's about extracting, transporting, and processing them profitably. Today, even rich mineral deposits can remain untouched if costs outweigh potential returns. Yet, history teaches caution when dismissing technological breakthroughs. Decades ago, few imagined carrying supercomputers in their pockets. While asteroid mining appears unrealistic under current conditions, future advances in energy systems, automation, and space transportation could dramatically alter the equation.

[00:09:42]Yeah, I'll hand that back to you. I'll give you my opinion. I want yours, but short term, I think this tariff thing can help. And obviously, it's, you know, putting more copper into the country, but those are usually um short-term [music] fixes. And full disclosure, I'm involved with a copper project in Montana [music] uh for my mastermind group because it's a uh it's a [music] highly speculative startup but huge potential in my studied opinion and I've become much more of a copper bull than I was let's say a year and a half ago. So I think it is strategic. I think it is massively important. I think it's important but you know I really like a free market level playing field for everyone.

[00:10:23]Fortunately, people think that, you know, that's that's true capitalism, but we haven't had true capitalism in a very very long time. Meaning that, you know, like the EVs are subsidized by governments, so [music] the cost is less than they would be if it was a true free market. So, real price discovery hardly exists in almost any manufactured good of of weight of merit like the electric vehicle market. But anyway, back to the point. We need it. We want it. [music] and you know bringing it in through the tariff means it will work short term but what we really need to do is find it uh and mine it and that's where this one um and and I'm invested in this so I'm biased but uh you know we still have resources in the US that haven't been uh taken out of the ground I mean you look at the silver valley I don't know how much silver's still over there but you know it has already mined a billion ounces of silver back in their heyday but there hasn't been a heyday for silver mine in the United States [music] the last, you know, 25 years. I mean, there's a little bit of mining going on and, you know, the Lucky Friday has been going on for, I don't know, over 50 years and certainly produces very high-grade silver and it's very efficient and it makes a profit and all that stuff, but you know, that's excuse the expression of spit in the ocean. I mean, it's not very much relative to the whole silver market. So, what do you think? I mean, you think that uh you can get away with tariffs and get enough or you think you have to look longer term?

[00:11:51]>> Well, I'm sure the listeners don't want to know my uninformed [music] views on the topic. Although, I do have a dock in a European copper smelter and recycler. So, I hope that the US um don't make it more difficult for foreign sellers to provide them with copper.

[00:12:09]That's my uh my bias take. We've all got our own biases. Um, I wanted to ask you about another story that caught my eye, which is um something I saw about a small company um doing an IPO, but I wondered what it might say about where we are in the mining cycle in your view. So, it's in the Idaho Business Review, and it's about a company called Sunshine Silver in Kellogg, Idaho. And it says that they're seeking a New York listing up to $2.32 billion to help restart a previously shuttered mine in the historic [music] Silver Valley. And in this same article, they mention some other North American [music] miners that started to test the IPO market again. uh and the examples were barracks North American gold [music] assets and uh one owned by Mchuan Copper. So I wanted to ask you what do you make of that? Do you think that that might tell us where we are in the mining cycle right now? The fact that we're seeing these IPOs pop up?

[00:13:16]Yeah. Okay. So [clears throat] usually okay at the top of the market in the mining sector what you will find is a great deal [music] of new startups and um a lot of let's say micro cap stocks with a great story and no real merit.

[00:13:36]what we call the moose pasture in the mining industry comes to the four and there's all kinds of people that [music] are late to the party and they want to buy a cheap stock because they missed the move from, you know, gold going from 5,000 to 8,000 or the move from silver going from 100 to 160 or whatever. And so that's a very clear sign of a topic.

[00:14:00]Something like this where Sunshine Mine restart [music] is real and progressing, but it's not an imminent restart. I mean, the Sunshine Mining Refining did file the IPO, the symbols SSMR, and it's seeking several hundred million for redevelopment of the Sunshine [music] Complex. Now, I've been through there. I live an hour and a half from the Silver Valley, and I've been through Lucky Friday a couple times. I've been through the Cormine. I've been through Sunshine Complex. I've been through um I can't think of it, the lead mine over there.

[00:14:32]Uh anyway, h anyway, Bunker Hill, been through Bunker Hill. Many others, small ones, projects, properties, mines. So, anything from a producing mine to a piece of property and everything. Have I done every single project over there?

[00:14:47]The answer is no. But more than probably anyone else that's a financial newsletter writer. I look in your eye and say that. So, [music] uh, since acquiring the property in 2010, the management has put about 200 million in exploration and redevelopment work. But from what I think I know from the mine manager that worked there and one of the geologists that work there, they may or may not have a viable situation.

[00:15:16]So, I just want to be fair here. First, let me repeat. I don't know. But, they've been there for a long time. In fact, usually when I drive over there for either, you know, just to meet someone or do an interview or what have you, it might not necessarily be a mining trip. I usually take the time to get off the freeway and drive back because it's not very long, a couple miles off the freeway exit to just drive into the complex. And it used to be, you know, four trucks and a dog out there.

[00:15:42]And anytime I've gone the last couple years there, it's full. There's a lot of people there. So what makes it interesting from a strategic standpoint is management no longer is pitching it purely a silver mine. They're positioning it as a US critical minerals hub with silver antimony copper lead and germanmanium potential. So I think that's really important for [music] your viewers to know Mark because they are not saying this is the sunshine silver mine. They're saying hey it's strategic and we've got all these others. The big problem with the Sunshine Mine was that there were what's called nasties in the business and arsenic used to be a primary problem and the refinery was across the street from the mine. It's been closed down. It was bought once [music] and it's been closed down again.

[00:16:27]And I've been to that um on the on the reopening. But the point being is you had to process the mineral coming [music] out directly from across the street, get the arst stick out of it and then put it into the flotation circuit [music] to get the silver out. So it's not easy. So from an investment perspective, Mark, let me say a couple things. whether the IP whether the IPO successfully [music] completed, the feasibility is not um probably going to be accomplished until 2027 and the capital cost estimates [music] versus the price of silver could impact whether or not you would want to make an investment. For watchers of it, I would say investing in the story [music] that really won't manifest till 2028 to 2030. you have um the possibility of the Sunshine Mine restarting uh the Crescent Mine back in production, Bunker Hill operating [music] and the Galina continuing. So um I would depending on your risk tolerance, you know, and also there's always some factor depending on you know who's spearheading this and the people spearheading this are well known, very wealthy, know what they're doing, have a great track record. So let me get that into the into the message today as well.

[00:17:48]My assessment is a sunshine mine is no longer uh a promotion. This is real capital re-engineering work and a defined timeline. So the question now is execution and financing.

[00:18:02]Uh the or body has never been the issue.

[00:18:05]That's debatable from what I've learned from the geologist [music] and the mine manager, but they've been there for two years. So, they darn well have a better idea than I do what's really left there and what isn't there. So, the challenge is turning one of America's greatest historical silver mines back into a profitable modern operation.

[00:18:27]>> Copper has emerged as one of the most critical materials in the modern economy. Demand is being driven by electric vehicles, renewable energy systems, artificial intelligence, infrastructure, data centers, and military technologies. Governments increasingly view copper as a strategic asset rather than an ordinary industrial metal. In the United States, discussions around tariffs and domestic production reflect growing concerns over supply security. However, building stockpiles offers only temporary relief. Long-term solutions require expanded mining, refining, and infrastructure investment.

[00:19:00]As electrification accelerates worldwide, copper's importance may rival that of oil during previous industrial eras, making it a centerpiece of future growth.

[00:19:09]>> Well, it does. I mean, first of all, you know, if you look at the critical minerals list, you probably want to favor those over one minerals that are not on that list. And then you just have to still do the same due diligence you do anywhere, any time on a mining concern, uh, startup or otherwise. And you know what occurred to me was what I said earlier. I'm not going to take it back. But the idea that u as I said that very easy to figure the top [music] of the market when you're my age and been in the resource sector since you were you know 16-year-old kid thereabouts [snorts] that you get these Johnny come lately micro cap you know silver liberty silver you know silver happy day silver whatever gold gold hallelujah I mean you get all these crazy names and that may not be the case this time maybe it's different. So it occurred to me as you were speaking that maybe this is the market rhymes. It doesn't necessarily repeat. So maybe this is kind of an inner look at this is the way the market's approaching this time. You got the backing of the strategic asset on the critical minerals list and you've got all these you know IPOs or startups or you know we're going to you know be in bed with the government because they need this antimum and I think it's a good way to look at it. So, does that mean the market is getting saturated? I would say not yet, but it might be an indicator that um there's a little more hype going on here than people realize.

[00:20:38]It's a little more subtle than having a bunch of uh penny stocks flying up in front of everybody to invest in. This is at least on the surface appearance much more viable, much more reasoned, much more, let's say, um, less risk than you might have in a, you know, a penny stock with a big promotion by. Nonetheless, mining is one of the hardest industries out there. I mean, you can have the best people in the world getting behind a mind and not making a discovery. And [music] you know that's just the laws of you know mineral discoveries. I mean find finding a mine. So I said a lot to say this succinctly.

[00:21:24]I it cautions me slightly Mark from what you said because whenever you get a huge increase like that that's usually an indicator that the market has to cool off for a while. Now we've already seen gold has cooled off and going [music] sideways. silver's cooled off and as we said earlier in our interview, you know, silver going to go down and you know, below 50 or, you know, so I I have told my people I'm just publishing in tomorrow, the June issue of the publication. And I'm pretty convinced still that we've got more [music] work to do to consolidate through the summer, I believe. So, three more months or so at least. Could I be wrong? Of course.

[00:22:00]But the market I think needs to go to a phase of kind of consolidating the gains that happened so rapidly the past few months and oiled year or so really consolidate those gains kind of find out who's real and who isn't what projects are real which aren't which are viable which aren't. And then from that [music] let's say deep breath or a few deep breaths. Okay. Yeah. Now we know we need this much antibod. Yes. It should be subsidized. Yes, we got to hurry the project because if we don't, we can't make this kind of missile. Let's press on. But just to start doing a bunch of filings to make a bunch of money. Um that that gives me pause. And you know, I'm quite conservative. I mean, people, oh, you like gold and silver, you're very, you know, risky. Now, the less of those riskfree investment can make long term is money. It's like putting money in the bank, except it's money, not currency. So there's a big difference between the two as I know you and your views.

[00:23:02]>> The resurgence of mining related IPOs offers insight into the current phase of the commodity cycle. Companies are seeking capital to restart historic mines and develop projects focused on critical minerals. Unlike previous speculative booms dominated by promotional stories, today's projects increasingly emphasize strategic resources such as antimony, copper, geranium, and rare earth elements.

[00:23:24]Governments are supporting these initiatives due to national security concerns and supply chain vulnerabilities. However, investors should remain cautious. Mining remains one of the world's most challenging industries where financing, permitting, technical execution, and commodity prices ultimately determine success regardless of a project's potential. And your choices are antimony, continuing on from uh US critical minerals, copper, and space stock. So, which one would you date for a short-term trade? Which one would you marry for the long term? And which one would you run from? And the options are Antimony, Copper, or SpaceX stock.

[00:24:06]>> Oh boy, that's a tough one. So, the only one I'm sure of would be Mary. I would uh I would marry into um the copper. I think copper is a metal that powers electrification, AI infrastructure, data centers, robotics, military expansion, EVs, and grid up upgrades. So, I think because of that basic long-term theme, it's the safest. And I would say, you know, you've got your Freeport Mountains, your Hud Bay Minerals, even tech would probably be good long-term investments. That's education, not a recommendation.

[00:24:42]Uh, so that would be my long-term theme.

[00:24:45]Um, as far as the highest torque, that's antimony because it remains one of the smallest, tightest strategic minerals on Earth. So, you think the silver market's tiny, antimony is very tiny. And China's historically dominated supply. Western governments are scrambling now to secure domestic sources because antimony is essential for military applications, batteries, semiconductors, and flame retardant retardant. So, that would say the highest. So, that would be a date.

[00:25:14]So, it was date, marriage, or what was the third one?

[00:25:17]>> Or run.

[00:25:19]>> Run. Um, I might jog away from SpaceX.

[00:25:24]Um, it's becoming uh available through the IPO as you mentioned, Mark, but I'd be careful chasing the initial excitement. Uh, even bullish analysts are warning that the valuation may be extremely aggressive. If I want exposure in the space economy, I'd look at a rocket lab, a space mobile, but I would say Mary copper, data antimony, and jog a run away from SpaceX. Um, that's what I would do.

[00:25:54]>> As geopolitical tensions intensify and governments prioritize resource security, investors are re-evaluating their portfolios. Many analysts favor exposure to critical minerals that support defense systems, advanced manufacturing, energy infrastructure, and technological development. Among major industrial metals, copper stands out due to its broad range of applications and strong long-term demand outlook. Precious metals also remain attractive as hedges against monetary uncertainty and debt related risks.

[00:26:19]While short-term market volatility may continue, the larger trend points toward increasing competition for strategic resources. For investors, balancing precious metals, critical minerals, and quality producers could define success in the coming decade.