 Today, I have the pleasure of speaking with David Morgan of the Morgan Report. How are you today, David? I'm well. Thank you, Tracy. David, I stayed up late watching the first presidential debate last night, so I'm going to have to ask you the obvious first question. Depending on who wins, what is happening to silver and gold this fall? Well, you may not like my answer. I was only able to watch part of the debate. I was at the Toronto airport, and I got in on one of the streaming channels. But as far as I'm concerned, it's like changing the captain on the Titanic. I don't think at this point it really matters who's at the helm of United States as far as the precious metals are concerned. I think the overall emphasis will be higher prices over the next few years. Okay. You're talking higher prices. A lot of people are starting to get excited about silver. And of course, I think to myself, David has been leading that charge for quite some time. Is silver really on a bull market run right now, or what's happening with silver? Well, as you know, I spoke to the minds of money here recently, and that was one of the questions they wanted me addressed during my presentation. And I came up with three factors that for me, after studying the silver market for so long, one is, were the volume sufficient? In other words, was there enough interest in that market? The answer is yes, substantial interest in volume. The second is, did silver lead gold? And it finally did. It's been up as high as 40% year on year, and gold has been about 30%. So it's outperformed gold. That's the second factor we want to know. And lastly, we need to see the underlying asset or mining shares outperformed by a factor roughly of three to one. And that's taken place as well. So those three factors are all I need. I don't need 20 reasons. I just need those three to be assured that we're in a bull market. So we are in a bull market. We are. Of course, our investor Intel audience may know David Morgan as a silver and gold expert, but he's actually considered one of the top 25 economists in the world. So Christopher Ecclestone from Investor Intel sent me some questions to ask you for our investor intelligence economic data report. And he wants you to talk about property and the asset market in the United States, and what's happening with that right now. Well, like Toronto, there are areas that are very overvalued. I mean, really, if you look at real estate from an investment perspective, you have to treat it that way, which means what you return on investment. So if you buy an apartment or an apartment building or a single family residence, what you have to look at is what will it rent for? And will I get a return on capital? So if you put half a million dollars into a small apartment here in Toronto or other major cities in the United States, for example, and the return on investment is, let's say $1,200 a month, so you get $14,400 per year, what is that return on $500,000 investment? It's not really very high. So this is the way to really approach it. Now people don't do that generally. What they do is they speculate, and they say, well, some greater fool buy for a higher price because prices are going up. That's a momentum play, but it's very careful. It's called flipping. And you know all this stuff. So as far as I'm concerned, from a gut honest level, I think most real estate is overpriced in the major cities in the United States, and it carries across the board. I mean, it's in Toronto, it's in Vancouver, parts of Australia, throughout parts of Europe, et cetera. So are there deals in the real estate market, yes, but usually in the very smaller communities. And then he wanted me to ask you more specifically, do you feel that there is a property bubble building up? I'm assuming the answer would be yes, based on your last answer. Absolutely. There's really a couple of bubbles going, they all revolve debt because the debt markets we can talk about later, but real estate is basically debt finance. Very few people come in and buy property for cash. It happens occasionally. There have been some funds that were loaded up on cash a few years back, and they bought property for cash. They didn't know what else to do with it, and it wasn't a low at that time. But now it's finance. So you're either renting the money or you're renting the property. I mean, people don't think of that. So if you're renting money for practically nothing because of the zero-interest rate policy, you've got a cheap way to finance. But you also, again, have to look at what the return on that financing is. Is it positive or is it negative? So any other economic trends that you'd like to comment on at this time? Well, I think I'll just add on to the bond market. First of all, I think it's important, and most people know this, that the bond market and the stock markets are heavily correlated at this point in time. When you go back 30, 40 years, they were not correlated. Bonds were safe. They paid a high interest, and stocks were more risky, and they were dividend-paying stocks, but it was a different market, and they counterbalanced each other. This isn't true and hasn't been for a long time. By any measure, the bond market is in a huge bubble, probably the biggest in recorded history. And a subset to that, of course, are the equity markets, and by any measure or any metric you care to use, the United States stock market is very, very overvalued. Okay. Can you comment any further on that? Well, I think, and I'm not great at timing the stock market, but I don't think it can last a lot longer at these levels. It's in what's called a distribution pattern, which is a high-level consolidation. That's another way to talk about it. This distribution pattern is where the smart money is getting out into the public. The consolidation, which means at an $18,000 to $19,000 level, the smart money is selling their stock into basically the public. It could be pension funds, it could be some hedge funds, but basically they're unloading their stock, but they do it, and they parse it out slowly over time because if the big money moved big amounts of stock, of course it would crash the market. If there's huge volume buying or selling, you're going to move the market. So they just feed it into the market over time. So now we've got the weak hands holding the stock market higher, and the smart money has moved out. In fact, what's interesting is why that smart money has already moved into gold. They moved into gold and silver to some extent, but primarily gold early in the year, early in 2016. So the smart money is moving into gold, and I want to clarify a little bit, and silver, of course. You're here at the Minds and Money. It's a resource-directed event. What about the resource stocks? I mean, they've had a really rough time in the Toronto Stock Exchange over the last couple of years. Is this market also in trouble? I think it is. I mean, you get my opinion when you talk to me, Tracy. You've known me for a long time. I am of the belief that the resource sector overall isn't going to do that well on this next leg up. As the bond market comes down, the equity markets establish a more reasonable price. Real estate falls. I think we're in the contraction phase, and because of that, the only thing I think, well, not the only thing, but I think the precious metals will go up because of their money and because of the risk factor of these other markets. Also there are spaces like Lithium, and there are some things in Colbalt, and there are other metals that you know a great deal about and actually specialize in that will do well. But I think the overall resource sector probably isn't going to see the heyday that we saw between, let's say, 2000 and 2010, where China was leading this huge drive for copper and tin and nickel and cement and all these things that took place because of this huge build out of China. Could be wrong. I hope I am, but I really think that it's only going to be certain sectors of the resource sector this time. Can I ask you about your own personal investments? Is there something you would share with our investment audience? Well, as you know, I started another company. It's called LaMaria Royalties. It's a royalty and streaming company. It's based here in Toronto. I have a great group of people that have been there and done that with premier royalties, and we have several meetings set up this week on what we're doing. We've already completed our first deal with Haas Shield, which is one of the better-known names, and we have a strong group of investors that are backing us, and we're having a good time doing it. Well, David, thank you so much for joining us. Thank you so much for having me.