The Premier Silver Resource Website

Live Spot Silver
Silver Market Articles
Silver Discussions at the Forum
Silver Company Links
Silver Market Updates
Silver & Gold Headlines
Silver Stock News
Silver Equity Quotes
Silver & Precious Metals Quotes

Flashback - March 3 - Silver Update and Silver Bullion Dealer Survey

By: David Morgan, Silver Investor,

-- Posted 21 March, 2008 | | Discuss This Article - Comments: Source: Exclusive -- with permission of:

This is an edited version of what David Morgan sent to his paid subscribers on March 3, 2008.

March 3, 2008

Today Silver closed over Twenty Dollars up 50 cents closing at $20.31.

Gold is very close to the $1000 level. What I just wrote in the monthly still applies, we are moving up rapidly and in our view nearing a temporary top. However, some cautions are in order. Please listen to the Silver Update I provide on our website each Monday morning with the exception of when travel takes me outside the country.

Click here

(Note: You may keep up with David Morgan’s weekly articles at

In my view silver could keep moving up for several more trading days, but "normally" buying pressure exhausts at some point. Please listen to the audio update because we always must be aware of the fact that at some point, someone may call the silver bluff. Meaning, someone, some entity, some Sovereign Wealth Fund, stands for delivery of physical silver.

If or more likely when this takes place the whole dynamic of the silver market will change, from being a paper based derivative market (Comex) to one based upon the true physical demand for silver. I have predicted this to take place "at some point" but do not think we are there yet. However, I want to get this memo to you so you can be prepared.

The market is trading in a short squeeze fashion, and I think it best not to chase the market here, especially if you use leverage. The shorts must be sweating here and maybe just maybe they are going to feel much more pain during the next several trading sessions.

I did my Silver Bullion Dealer survey, which I have not done for some time. I personally phone most of the major physical dealers in the U.S. and ask how the orders for silver bars, rounds, and bags are doing? What I found was that most dealers reported that February was the biggest month they have had for physical silver in a very long time, additionally it was almost all buying very few sellers.

We even spoke to a few dealers that were having trouble filling large orders. I want to remain objective here. We do not find this to be the case all over the country.

Some of the stocks are starting to pick up life, but there is not enough volume in this area to excite me yet. In other words, the buying is still in the Silver ETF’s, Futures, and physical market. This is another subtle clue that we are probably approaching a momentary top.

Bottom line-- Be Bullish but realistic, we are far above the 200 day moving average and when there is this much excitement in the market, it is usually best to stand aside. Very aggressive investors/traders might consider selling some into this rally. Final words, I am usually early, when silver finally broke the $5.50 barrier to the upside so many years ago I sent out a similar email when silver had closed above the $7.40 level, it opened higher and eventually traded a full $1.00 higher, some were upset I did not call the exact top (Who can?), but when the market started down and orders had to be matched there were large gaps in price where orders could not be matched. I do NOT expect that this time because there is so much more interest in the silver market however I do not rule it out entirely.

Best regards,

The Silver Investor

-- Posted 21 March, 2008 | | Discuss This Article - Comments:


Mr. Morgan publishes a private newsletter for serious precious metals investors. He hosts the web site: . He has been a private economist for over two decades his background in engineering , with an advanced degree in Economics/Finance. He has been interviewed on Don McAlvany's radio talk show, Financial Sense Newshour, Hard Money Watch, and appeared on television. Currently he does an internet radio wrap up each Friday discussing the economy and precious metals. Mr. Morgan was published in Global Investor regarding ten rules of silver investing. Currently, he is writing a book on silver.

Last Three Articles by David Morgan, Silver Investor

$75 Silver Looming
8 August, 2011

Silver and the Minimum Wage
4 March, 2011

David Morgan Explains Why Silver Is Catching Up, Why It's Broken Out and Where It Goes From Here
1 November, 2010

SilverInvestor's Archive List is presented to you by:

© 2003 - 2011, Silver Seek LLC

The content on this site is protected by U.S. and international copyright laws and is the property of and/or the providers of the content under license. By "content" we mean any information, mode of expression, or other materials and services found on This includes editorials, news, our writings, graphics, and any and all other features found on the site. Please contact us for any further information.


The views contained here may not represent the views of, its affiliates or advertisers. makes no representation, warranty or guarantee as to the accuracy or completeness of the information (including news, editorials, prices, statistics, analyses and the like) provided through its service. Any copying, reproduction and/or redistribution of any of the documents, data, content or materials contained on or within this website, without the express written consent of, is strictly prohibited. In no event shall or its affiliates be liable to any person for any decision made or action taken in reliance upon the information provided herein.