Question: Mr. Morgan, I was wondering if you could clear up this subject matter. There seems to be more and more articles being written that advocate getting completely out of paper assets (IRAS, 401Ks, etc.). I realize all the research you have done on the mining sector, bringing to us some great investments. Other than owning the physical shares outright to protect ourselves, do you still feel mining shares safe to hold when or if all currencies fail, monetary controls are instigated, etc.? Will at the end of the day these shares hold their value or should we sell and buy physical silver? Thanks, Jack.

Comment: Shares represent and in fact are verification that you are a business owner, you are a partial owner in that business, and in our case, mostly gold or silver producers in most instances. So, even in a worst-case situation you still are a partial owner.

However, if something happens to that particular business (mining company) or the whole sector—for example, being nationalized—then obviously holding the shares is not a good idea. We truly think that if you follow our model and spread out, the gains will be worth the extra risk. But we have always emphasized to hold physical as that is the ultimate money and has none of the concerns just outlined. The key question then becomes how much of a percentage would be correct, and that is an individual answer that only you can decide.

Have a great weekend!

David Morgan, The Morgan Report