No metals portfolio is complete without physical precious metals, says David Morgan of the Morgan Report in this PDAC 2018 interview. But right now the best bang for buck is in mining stocks.

“The most leverage is in the mining sector, and the miners are undervalued relative to the metal itself. So if you already have exposure to the physical, the best bang for the buck is no doubt in well-chosen, well-selected mining companies,” he explained.

Morgan, who’s well known for his silver commentary, is optimistic about both silver and gold in 2018. But he sees the white metal outperforming its yellow counterpart as the year continues. He commented, “I could see a 30-percent increase in the price of silver from the bottom, and maybe something similar in gold from last year – 10 to 20 percent.”

In the video above Morgan also shares his thoughts on LODE, a cryptographic silver monetary system that he recently became involved with. According to Morgan, part of its appeal is that it could represent a way to return silver to the monetary system.

Watch the interview above for more insight from Morgan on the future of silver and gold. You can also click here to view our full PDAC 2018 playlist on YouTube.

INN: We’re here at PDAC, and it’s the first day of the convention. It’s actually quite early, but have you had a chance to get a sense of the atmosphere yet?

DM: Walking in from – you know, I’m here almost every year – it felt about normal. But when I got to the area to get my badge, it was incredibly crowded and extremely noisy. I would say, based on that – and I think it’s a good market – that things are picking up in the sector. We know that prices have been down and it’s been kind of a washed out sector for awhile. I would say based on the enthusiasm, it’s going to be not only a good show, but I think that’s an indicator that things are doing better.

INN: We spoke last at VRIC, and you said you see gold and silver prices going moderately higher this year. We’ve had a couple of new factors introduced since then. We’ve got a new Fed chair, we had the US stock market selloff in February. Are you still feeling the same way?

DM: I am. I think the ability for gold – gold did [see a] modest increase in 2017. Silver was pretty flat. I think this year silver will outperform gold. I could see a 30-percent increase in the price of silver from the bottom, and maybe something similar in gold fro