Mike Gleason: It is my privilege now to welcome back David Smith, Senior Analyst at The Morgan Report and regular contributor to MoneyMetals.com. David, thanks for coming on again and how are you, my friend?

David Smith: Oh, very good. It's great to be back again.

Mike Gleason: Well, David, as we start out today, and before we get into silver and what's going on with the white metal, let's focus on gold for a moment and the recent move we saw there as it finally pushed through the multi-year overhead resistance level of, say, $1,370 or $1380. It's now been consolidating over the last couple of weeks at or around $1,400. Talk about what you're seeing there with the yellow metal, why you think it was finally able to break out of that five year long trading range, and then where we're likely to go from here.

David Smith: Well, I think it was just a convergence of factors that all came together that gave it that extra critical mass to move through, and it did so decisively and, in closing above there around $1,365 or so, it was really, really powerful. And what I'm impressed by lately, I'm always aware that we could see a $100 drop before things get going again, but it looks less and less likely the longer it stays at a very high consolidating level. For example, it was up today around $15 or so. It just doesn't like to stay much below, say, $1,395. It likes to be above 14 (hundred).

And then also, there's another tale going on with the mining stocks. They are remaining pretty strong. All the good ones are giving up ground very begrudgingly. And so, what I think is going on is accumulation, not only in the mining stocks, but also in the physical metal itself. Maybe the retail sector hasn't caught on fire yet, but I think the big players are adding to their physical metal and that's, of course, going to be draining more and more physical out of the place where people can buy it at the retail level.

Mike Gleason: We talk a lot about the real interest rate environment. Obviously, there's now a lot of momentum for a reduction in interest rates, which obviously helps gold look a lot better as an investment. The big knock on gold is it doesn't earn you a yield, and you think part of that is playing into this recent move?

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