this is from an interview of david morgan of the morgan report:

Mr. Martin: You mentioned a spike in prices. I noticed recently, I think we had a spike of 12 percent, 13 percent, maybe 15 percent, with regard to the price of silver itself. Do you see that as a short-term trend or is this something that portends what is really coming as the federal government is doing some serious monetizing at the moment?

Mr. Morgan: That is a really tough call to make. I mean I’m one who’s known to be one of the better silver analysts out there and I appreciate that confidence. Silver in my view is much more difficult to analyze than gold. We could get to a situation when silver is in such tight supply either because of industrial demand or investment demand or both. It will be both, in my view, but primarily investment demand is why silver prices will take off, and for no rhyme or reason the price keeps on going up. So I never rule that out.

Therefore it’s really difficult to put a long-term forecast on silver from this day going forward, because the supply is so small and the demand could increase overnight. I do believe that we’re going into a spike high here, with gold probably going to touch around the thousand-dollar level, give or take, and I think that the governmental bodies that are so worried about what the financial system is doing keep a pretty close eye on the gold market. So I think on a very, very short-term basis we’re probably going to see a spike up to about the thousand-dollar level. Silver will go where silver is going to go.

As we’re doing this interview, silver is up over 5 percent and gold is only up about 2 percent on the day. That’s typical of the pattern that I look for, to basically want to start thinking about taking some profits off the table. By the way, just to reiterate, I always maintain a 75 percent position at all times, regardless of what the short-term market conditions provide. No technical analyst in the world can anticipate a 9/11 event on a chart. We want to keep the bulk of our money invested at all times, but when you see the overbought or oversold situations and you have the stomach for it, you certainly can take advantage of them.

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