➡ Economist Lynette Zhang, with over 50 years of experience, discusses the rising price of gold and the shift towards digital currencies. She believes the increase in gold prices is due to market uncertainty and inflationary pressures. Zhang also suggests that the world is transitioning into a new financial system, with digital currencies like Bitcoin being a part of it. However, she warns that these digital currencies are a risk, and gold, with its broad base of demand and functionality, remains a safer asset.
➡ The article discusses the value of gold in relation to the global debt. It explains that the true value of gold can be determined by dividing the total global debt by the amount of gold in the world, which results in a value of over $40,000 per ounce. The article also discusses the role of central banks and governments in managing the value of gold and the potential for a financial crisis. It further explains the difference between physical gold and gold contracts in the COMEX market, emphasizing that only physical gold is real money, while everything else is credit.
➡ The text discusses how there are no legal restrictions on the amount of gold or silver contracts that can be created, which can suppress the price. It explains that these contracts are often complex and not fully understood, even by those who create them. The text also mentions that the value of gold is influenced by confidence in the system and that the purchasing power of currency is decreasing. Lastly, it warns against focusing on numbers, as they can be misleading, and emphasizes the importance of understanding the underlying value.
➡ The text discusses the instability of Zimbabwe’s currency, which was supposed to be backed by gold but was devalued by 44% overnight, causing public distrust. It also talks about the potential revaluation of gold and the need for an audit of Fort Knox to determine who owns the gold. The text suggests that gold and silver can maintain purchasing power and potentially benefit from a wealth transfer during a market flip. It also mentions the possibility of hyperinflation to eliminate old debt and the importance of holding assets like gold during such times.
➡ The speaker believes that cryptocurrencies like Bitcoin are a distraction from the real value of physical gold and silver. They argue that owning these precious metals allows individuals to become their own central bank, securing their financial freedom. They are part of a global movement to reintroduce physical gold and silver into the monetary system, as they believe this is the best chance to regain financial power. They also emphasize the importance of preparing for potential economic instability by investing in necessities like food, water, and shelter, and preserving wealth through gold and silver.
➡ The article discusses the instability of the current financial system, highlighting the dangers of relying solely on digital or paper currency due to inflation and potential political interference. It emphasizes the importance of investing in tangible assets like gold and silver, which have historically retained their value. The author also mentions the possibility of negative interest rates, which could further devalue money in bank accounts. Lastly, the article encourages diversification of investments and preparation for potential economic downturns.
➡ The speaker enjoyed having the guest and plans to invite them back for a special show with other guests. The guest is invited to visit the speaker’s retreat, despite the guest’s concern about the hot Phoenix weather. The speaker mentions the cold weather they’re currently experiencing and praises the retreat’s cooler climate. The conversation ends with a promotion for survival gear on a website, emphasizing the importance of preparation for survival.

A rising gold price is an indication of an imminent catastrophe. What would $40,000 an ounce gold, tell the public? A crisis is coming. It’s a con game, so they have to maintain your confidence. Bitcoin is a Trojan horse and they’ve been moving us in this direction since the 50s when they gave us credit cards. It’s like the frog in the pot of water. By the time you’re done, you’re cooked. It is happening and it has to happen. The reset. It doesn’t matter how much of this you have, it matters what you can convert it into. There are over 4, 800 currencies that have gone to zero because governments cannot help but keep doing this and they are getting into position to weather this storm.

World War Three is already happening. This is a house of cards and it is in the process of collapsing right now. You’re going to see an economic crash the likes of which we’ve never seen. Hi, folks, Canadian prepper here. Today we have back again, Lynette Zhang, who’s an economist with over 50 years of experience in banking, stock broking and currency analysis. Since 1987, she studied currency life cycles and now shares insights on navigating economic uncertainty, focusing on key topics like wealth preservation, security and community, all while supporting sound money globally. Now, the last time we had Lynette on, I think the price of gold was around 1850, maybe 1900 bucks.

And here we are about a year and a half later and we are now looking at gold, which is 50% higher than it was. Can you tell us your thoughts on everything that might be fueling this rush into the gold markets? Well, you know, first of all, you did bring up the fact that I’ve been studying currency life cycles since 1987. And so there is not even one teeny weeny doubt in my mind that the system actually died in 2008. And we’re transitioning into a new system. But at the moment, what we’ve got, and more than likely for the next four years, is a whole lot of market uncertainty because there’s, as they like to say, there’s a new sheriff in town.

But you know, President Trump, the way that he negotiates is by going in and changing things and making and, you know, dictating big things that are going to happen and then that throws everything off. And so what you’re seeing is a rush to safety in the true one, the only flight to safety asset that runs, the only financial asset that actually runs no counterparty risk. Don’t you mean, Aren’t you Talking about this right here. No, I have one of those though. I want you to think that that’s actually. I thought this is real money, isn’t it? Yeah, no, this is a Trojan horse to get people used to having a digital currency, a full surveillance currency.

This is sound money. And you know, here’s a big difference, right? Where is this bitcoin, which by the way is not really gold, but they want you to think of it like gold. So that’s the color of it. All the cryptocurrencies, what color are they? Gold, silver or platinum? Because that’s the way to think about them. But it’s used in one place and actually it’s used as a risk on asset. This real solid gold is used in every single sector of the global economy. So it has the broadest base of functionality and the broadest base of demand.

This has been tested thousands of years. This test is coming up. Well, you know, I always say that gold is actually used in the computer chips that Bitcoin is printed on. It’s just funny how that all works with gold being the most precious of metals that is used in semiconductors in order to, for Bitcoin to do its thing. But that’s usually lost on a lot of crypto guys. Oh, you know, the interesting part about it though is that like diamonds, they’ve figured out how to make lab grown diamonds, right? But they’ve never figured out how to create the same exact attributes of both gold and silver in a lab.

So they do unique, they have unique properties. There’s a finite amount of them. And, and yeah, I mean, it’s much easier to get cooperation. They can’t force us into using a digital currency, but they can inspire us to use it and get comfortable with it. And then it’s like the frog in the pot of water. By the time you’re done, you’re cooked and there’s nothing you can do. Yeah, and it’s much like the move to like a cashless society too. You know, I realizing that I almost never use cash anymore. I mean, it just kind of occurred to me the other day.

But yeah, I mean, in the same way they’re sort of surreptitiously creeping us towards these, the use of these digital currencies. What is your take on gold? What is what is causing this increase in the price of gold? Is it tariffs? Is it the repatriation? Is it shortages? What is it? It’s all of the above, but I’d say primarily it’s uncertainty in the markets because markets need Certainty. So when the central banks were using the tools to let forward guidance, this is what we’re going to do. Now all you guys get into position to benefit from them, but they’re not doing that anymore.

And so there’s a lot of uncertainty. But what is actually happening? That in all the years that I have been in this business, and that’s on some level, as you indicated before, it’s actually probably about 60 years I’ve never seen this where we have that clash finally between the physical gold markets, of which there is a finite amount, and the digital gold markets, the derivative markets in the, which is primarily in the US and now there is usually those markets are just about trading because everything’s been turned into a trade. Right. But there are some large entities that are demanding physical delivery from those paper contracts.

And the level of collision that I’m seeing mean bank of England is sending over to the US that’s repatriating their gold, gold that they’re holding for other central banks. What happens if those central banks want their gold back? It’s a run on the banks, but for gold essentially. Exactly. So when you, when you ask what’s happening. Yes, there’s a lot of geopolitical uncertainty around the world. I mean seriously around the world, take your pick where. But you also have inflation that they can’t seem to figure it out. And why is inflation so sticky? Well, I don’t know.

If you had a tool and it was paper over stuff, maybe you wouldn’t care so much. Right. I don’t know why this has lost so much value, even though I’ve created a whole bunch of them and put them into the system. So it’s also the inflationary pressures. And even though I think it was Nigeria that just changed how they calculate inflation. So therefore households inflation not so bad. But the US does that all the time too. And now we’re even losing a lot of the data that wasn’t great data to begin with. And they just, they readjusted three months out after the markets have moved based on that data.

Now the data is even worse. So I’m telling you there’s no clarity in anything for most people. For me there’s lots of clarity because we are at the absolute end of this, this fiat money experiment. This stuff has officially no purchasing power left. It’s just existing by the confidence in the public. That’s a problem. So who do you think is buying this goal? Who or who’s repatriating the gold to the US and to me it seems Strange, because, you know, after Trump got elected, there was a Trump slump in gold and it crashed like 10% or so.

And now it’s basically back at all time. Highs we might even see Today it hit 3,000 for the first time, which is crazy. Do you know who is bringing this gold back? And is there some ulterior motives? Are they worried about some global crisis impending? Because we’re seeing the same kind of numbers as we were at the beginning of COVID Right. Well, that is a really good point. And I don’t know exactly who, but my bet would be that Ray Dalio is in there. He’s a huge, huge gold buyer. And not because he’s worried about tariffs, but he is preparing for a global revolution and so am I.

I’m working on building a global community to make sure that in this new monetary system we have a particularly compell component of convertible gold. So it’s much more than taxes and tariffs. And you know, you’re, you’re doing what everybody else does, which is Wall street trained us to look at that spot market and think, well, that’s what gold is worth. No. So even above 3,000, that, that does not reflect its true fundamental value. And I cannot give you a whole lot of guarantees, but I can guarantee this. At some point, all assets, all instruments move to their fundamental value.

So how do you know what that is? Because if you don’t know what that is, then how do you know whether it’s undervalued and you should buy it fairly valued and you should hold it or overvalued and you should liquidate it. How do you know that? The only way you really know is to determine what the true fundamental value is. The Federal Reserve very nicely tells us what the fundamental value of this stuff is. And this is true around the world because if you look on their purchasing power chart at the Fred Fred, everybody can access it.

In the search bar. Just put purchasing power of the consumer dollar and then look on that left access and down at the bottom where it started out as 1000 and move some decimals. So there’s your dollar. It’s a big fat 0, 0. And in fact, there are over 4800 currencies that have gone to zero because governments cannot help but keep doing this, right? Central banks and governments cannot help but doing that. So how do you get that for gold? Well, actually, it’s very simple. This is fiat money. This is sound money. They’re both money, but they’re the flip side of the coin, right? How is this money created in our system.

Debt, they create debt, they create money. So if you want to know what the true fundamental value of an ounce of gold is, you simply take all of the debt that’s ever been created. I do it globally because this is a global issue. And the last time I checked, it was like $313 trillion in debt that had been created. And we’re not even talking about the derivative bets on top of that. But just go with that for a minute. There’s an unlimited amount of debt that can be grown, but there is a finite amount of gold.

So you just divide the debt by all the gold that exists in the whole world, because gold is indestructible. And the Department of the Interior of the US runs a study on an annual basis of how much gold and how much silver is above ground. So it’s already been mined and is in ground, so is yet to be mined. And so if you simply divide the amount of gold that exists by the amount or the amount of debt that exists by the amount of gold that exists, that gives you somewhere north of $40,000 an ounce. But people put value in this.

So when they create that spot market, this is actually why they created the spot gold market, was to manage how you think about gold. And a rising gold price is an indication of a failing currency. But more importantly, a rising gold price is an indication of, of an imminent catastrophe. And so when you’re watching the gold prices rise and you’re saying why, the answer is, is that there is an eminent crisis. And I can’t tell you exactly the moment, but why would somebody like Ray Dalio or somebody up at that level, because those are the ones that can afford to take delivery of 500 ounces of gold at spot.

Right? Those people are making the rules. Know, the people that write the rules can influence the people that are right writing the rules. And they are getting into position to weather this storm because we are transitioning into a whole new financial, economic and social system. And you’re watching global central banks. I mean, this is really going to be interesting because we had a rash of gold repatriation after India in 2016. Denominated, took their 86% of their currency out of circulation. And then again we saw a rash of, of global repatriation in after 2018. So we’re seeing the same thing again a little bit differently though, because they’re doing it through the comex, they’re doing it through the digital markets in the US and then again gold from other.

It’s not just the bank of England, this is having a global impact on all of the physical metals markets around the world. And I keep asking what happens if there is a global repatriation? And these governments say, bank of England, we want our gold back and they’ve shipped it off to the U.S. what do you think happens then? And to the visible price of gold, but even to the invisible price of gold because the only tool that they have is more debt. So that’s the tool they have. Can you maybe explain a little bit about exactly how this COMEX paper market system works? Because a lot of my viewers, you know, I mean, we’re a prepping channel, so we’re not economists.

And this is something which is kind of hard for people to wrap their head around. The difference between the paper markets and this rehypothecation that happens with people who custody the gold. They’re lending it out to different people and they’re sending out these IOUs. Can you explain a little bit about how that works? Let me give it a shot. And it’s because of my work as an economist that I became a prepper too. Because these transitions, on average, 80% of the population ends up in abject poverty. So it is global economy, but. Or global community, but it’s also local community.

We’ll come back to that in a second. But these guys know how to make this transition. And it was. You could. Okay, so this was the money at first. This is a 1 oz$20 gold piece. Then they came out with this gold certificate which you could redeem for gold. You didn’t like what the government was doing. You could walk in the bank with this and walk out of the bank with that. Pulling the gold out of the system and creating restrictions around what government could do. But then you also had this in circulation, the Federal Reserve note.

So you had an ounce of gold, a $20 gold certificate and a $20 bill, all operating in the economy at the same time at the same level of purchasing power as dictated. So in 1933, when they took the public’s ability to pull the gold out of the system, these two things went away and this was left. But they legalized the Federal Reserve in 1913. So for 20 years these had been in circulation and people got. Got used to it. So when these other two things went away, really thought too much about it. 1971, up to that point, governments could still send in dollars and pull the gold out of the system.

But they had done that so much that by 1971 we had less gold in deep storage than we did after the confiscation in 33. Because in the 60s, there was a major run on the dollar, right. For other governments sending in dollars and pulling the gold out. Well, Nixon stopped that. But this, I could have these backwards. Okay, this one is 1969. Right. So this is what I was used to. And, and actually, before we go there, let me show you this too. I don’t have a silver dollar, but I have a half a half dollar.

Right. So silver was in our system. In 1965, our government started minting these, right. Taking the gold out of the system. They didn’t. Or not the gold, the silver out of the system. And they told the population that if they attempted to hoard that silver in this pre1964, they’re 90% silver, that the government would flood the market and crash the system. Incredible to me that a sitting president could talk about manipulating the markets and nobody said anything about it. This is crazy. This is crazy. But they said all of these will be circulating at the same time at the same purchasing power, value.

And so eventually this went away and this was left. And people didn’t realize that anything had changed except that. And then in 71, Nixon disallowed other governments from pulling the gold out. Can you tell the difference between these two bills? Not really, no. Exactly. So we’re told if you buy American products, you will not feel inflation. Well, I don’t know. We’re about 98% down. What do you think? You think people are feeling inflation? Yeah, and it’s so pernicious that, like you say, they. They kind of acclimate people to. They put both into the system, and then once you’ve kind of lowered your defenses a bit, they pull the other one away.

Perhaps they’re trying to do something similar with, with crypto. But we’re talking about something that’s been with us throughout all of history, really. Silver and gold up until, you know, the 20th century were recognized as currency. I mean, they still are, you know, the purest form of exchange around the world. But they’ve completely divided those two things. And here we are. Most people don’t even realize what’s what anymore. We’re seeing the price of everything go through the roof. And now they’re. So explain maybe how does this system of the COMEX work in the paper markets and the real price of gold? Because they’re lending out gold to different people that they don’t have.

Is that how it works? Kind of like fractional reserve. These are contracts, right? I mean, JP Morgan actually said it the best. Only gold is money, everything else is credit. Right. So on the comex, these are just contracts, futures contracts, options, different things that are a promise to deliver gold, the underlying gold. Not, not everything is. But since it’s a, since it’s just a contract, there’s no limitations on how much gold or silver that they can create. So to suppress the price, is there no legal restrictions on how much they can do? No, no. That’s the whole point.

These are the guys that write the contracts. Did you read the contracts? No. They’re this thick by house. You know how thick is that mortgage contract that you’re signing? Here, sign here, sign here, sign here. Tell me how many people you know that actually read the contracts. You’re, you go on the Internet, you want to go on a channel. Okay, well you’ve got to okay that you’re going to adhere to our policies. And it’s itty bitty writing. People don’t read these contracts. So it is absolutely legal because even though everybody always knew about the revolving door between Wall street and Washington, today it’s like they don’t.

There’s no even thin layer over that. Right. So if you have these guys that are writing the laws, who are they going to write them for? Themselves or you? It’s going to be their best interest. Right? So no, there are no limitations on how many contracts. And in fact, it was 2009, central banks really didn’t work too much in the derivative markets. Now for those people just really, simply put, a derivative is a big fat bet. You cannot convert those derivatives, depends on the kind, but you really don’t convert it to the underlying asset. It is just a bet on the price movement.

Okay, so prior to 2008, central banks minimally played in that market, maybe for foreign exchange to support a currency or something like that. But in 2009, before they change the accounting, that’s what governments always do. They don’t change behavior, they just change how they account for it. With my own eyes. But before I knew how to do print screen, unfortunately I saw and counted for every one ounce of physical gold, there were 62,000 derivative ounces of gold. That is gold that does not nor ever will exist. And that was 2009. Those numbers would be much, much higher now, but they’ve come up in 2013 with netting and this, all of this stuff so that every single entity agrees.

So you’re talking about the bank for International Settlements, the fdic, the all of the global central banks, the imf, International Monetary fund, which is all of the heads of all treasury secretaries and all central bank heads. Every single one of them agrees that they have no idea of the true value that is at risk in these contracts. And they say this too, because they’ve made it so complicated that not only can the average person not understand it, and I want to go back to that in a second, but the people that create these complex transactions don’t.

They can’t track them or understand them either. We see this much of the tip of the iceberg. I don’t care about what we see up here. It’s all this stuff that we cannot see that is going to make the difference when it explodes. And that’s why most people don’t see these things coming. But if they can create 62,000 ounces for each ounce, don’t you think that’s going to have an impact? So isn’t this how it explodes? Isn’t this like the beginning of the avalanche where you have people now repatriating gold? You have. I watched a video yesterday of compilation of people buying gold in China and standing in line for hours on end, and they’re putting limits now on it.

Is this how it starts to become undone? And is this how they start to see how that system works, that not even they know know how it works? When do we approach that critical mass where there’s just too much gold being demanded and the system can no longer borrow from Peter to pay Paul and that sort of thing? That’s a gazillion dollar question. And I don’t think anybody knows the exact moment. And that’ I became a prepper because I would always rather be. I don’t care if I’m 20 years too early. But if you are one second too late, you lose all of your choices.

And the point that you brought up in China is actually happening in many, many places around the world. And once that gold goes off this out of the system, like, like, I’m not selling this. This is mine, right? I mean, that’s what we do at Zhang Enterprises. So you can buy gold because we have our wholesalers. But what I was able to get when I started in this industry back in 2002 and what I can get today are very different. And it’s not just the price that I have to pay because I am clear on what the fundamental value is.

So I don’t care, you know, if the value is 42,000. Do I care if I even spend 10,000 or 20,000 or 30,000? Because the more of this that they create, the higher that number goes. But it really is all about confidence. It’s all about confidence. What we’ve witnessed, what I’ve witnessed over since 2008 is the whittling away of those layers of confidence. So 2008, it was bank to bank confidence as witnessed by interbank lending, which they don’t even report anymore. Right. Because it just. Banks lost confidence in each other so they stopped loaning to each other.

Then in 2015, the Swiss Central bank had committed, this is, and I can go into it if you want me to, but they had committed to a certain peg to the euro. And they kept saying, that’s our highest priority, our highest priority, our highest priority. And two days after they said that peg was their highest priority, boom, they changed their mind and it was no longer the highest priority. So central bank to central bank confidence gone. And then In June of 2022, remember we talked about forward guidance. So the central bank since 2008 would tell the banks what they were going to do and then the banks would get into position to prosper from it.

Well, they kept saying a 50 basis point increase, a 50 basis point increase in a 50 basis. I just about fell out of my chair when I saw this one. And then they did, bam, surprise the markets and did 75 basis points, which may not seem like much, but it was a huge, big deal because then what the markets learned is that. And then all the central banks came out and said it, that they could no longer trust what the central bank was saying. So those three key layers, and like I said, when they did that, I just about fell out of my chair.

Why would you give away that very important confidence layer? So there’s only one layer left, and that’s public confidence in this stuff and in the system and the people that are running the system. And that only continues if they can continue to keep the stock market stoked. Exactly. If that starts to pull back, then people get scared. And then what do they look into while they’re going to look into gold? Right there they would, they would see the stock market pulling back. And most people are not paying attention to any of this. Maybe they open their retirement plan statement when they get it and if it doesn’t look too bad, they go, oh, okay, things must be all right.

So to your point, and they also allow the crypto markets to fly because they need adoption. You know, do we have enough adoption yet? Maybe we do, maybe we do. So I don’t know. But that’s the way they do it. They get eyes on it. What would $40,000 an ounce gold tell the public crisis is coming. So, yeah, 3,000, 4,005. You know, do not be blinded by numbers because the numbers don’t really matter. I have here somewhere a $10 trillion Zimbabwe note. Here’s a. Here it is, $10 trillion Zimbabwe note. I am a trillionaire in Zimbabwe, but do you know what I can buy with this? Nothing.

Nothing. So don’t. This is probably the single most important thing that I can help people understand. Do not get married to numbers. The real trend is not the stock market going up. It’s the purchasing power of the. In this country, the dollar in your country too. But wherever you are in the world, it is. What’s really happening is the purchasing power value of this stuff is going away. And Zimbabwe has been. I’ve been following the Zimbabwean currency for God since 2006 in their first overnight revaluation. Usually that happens like three times globally on average, where overnight, like the prices of a tube of toothpaste might go to $50,000, which I know sounds outrageous, but this is, this is what happens in hyperinflation now.

So rather than changing spending, what they do is they revalue this stuff that has no intrinsic value and is used in one place against gold money, which is the primary currency metal. That’s true globally. They do that revaluation. That, my friends, is when you will start to see gold actually going toward its fundamental value. Now in Zimbabwe, this is their sixth iteration of an overnight reset and the last one that they did, which was last in last April, they came out with what they call the zig Zimbabwe gold. And they vowed that they would not print more than the gold, that they had to support the currency and other foreign currencies, meaning US Dollars.

But the population having been so abused by them for so long, meaning the governments and the central banks, they ain’t buying it. And so in October, they did an overnight revaluation of the brand new currency, 44%. Well, if it’s truly backed, guess what? You can’t do that. You can’t do that. And this is how you know, Please mark my words on this, please. The way that you know that something is actually backed is that you, the individual, have the ability to take that contract and convert it into the underlying document. Just like this gold certificate contract enabled you to convert into the gold.

You could pull the gold out of the system. If you didn’t like what the politicians were doing, you had a tool to hold their toes to the fire. That zig in Zimbabwe was presumably and is presumably 40% backed by gold. But there you can’t pull it out. It’s not backed. It’s pegged to the manipulated spot price means nothing. And so the public did not regain their confidence and they’re not adopting the currency. What do you make of the new media attention towards revaluation of gold and the Fort Knox fud? And is this all just kind of a controlling of the narrative of sorts? I know our mutual acquaintance Rafi Farber doesn’t think it’s quite feasible for this to happen because he thinks it’s going to create a basically a wealth transfer that would be very destabilizing.

What are your thoughts on revaluing the gold and why haven’t they done it yet? If it’s $42 an ounce, according to the government, the United States, why haven’t they done it yet and will they? First of all, I’m super glad that you’re bringing that up, because every single central bank has a gold revaluation account. So they can do. Every single bank is already in a position to do that revaluation. I do think. I don’t agree with everything. Like, I never agree. And I am just now getting political, to be honest with you. I do think that an audit of Fort Knox would be great.

However, it needs to be deeper than that because they can have the physical bars there. What I’d really like to know is all of those leasing contracts, right? So even though those bars may or may not still be in Fort Knox, and I’m glad that that’s going to get audited. Absolutely. It needs to go deeper than that to know who really owns the gold in Fort Knox. And we. We don’t know that. But I am, like, thrilled to death that these topics are actually coming up finally. Right. Because these were not topics that anybody was talking about, though.

There is such a long, historic precedence. And even in. In the us, Gold has been revalued three times, right? Or confiscated, rather, three times. It’s constantly being revaluated because that’s what the markets are about, but it’s what the government needs to revalue it to get rid of all of that unpayable debt. So I really have a lot of respect for Raffi and I really think a lot of him. But I do think that there is an opportunity here, and it’s one that I’m working on taking advantage of because I believe that this is our best shot at actually getting sound money back in the system.

And sound money is above all central banks, it’s above all governments and it protects your ability to purchase for silver the same goods and services. I mean I did a study recently and I took a look at the BLS Bureau of Labor Statistics food, basketball, back in 1913, 1971 and in 2024, September I think was the last time I did it. And the cost of food. Don’t hold me exactly to this because obviously I don’t have this data right in front of me. But if you want it, I’ll send it to you. But back in the rise in that same basket was something like 2,500%.

The rise in this manipulated spots price of silver was something like 2900%. So silver maintains your ability to buy the same thing over time. Even in this manipulated market for spot gold, it was up over 12,000% in that same time period. So not only does gold maintain your ability to buy the same goods and services, it also puts you in a position to have that wealth transfer benefit you. Because what you’re really doing with gold and silver is you are holding your purchasing power intact. Because right now what you have is you have a severely undervalued gold to a severely overvalued everything else market.

So stocks, bonds, real estate, take your pick, it doesn’t matter, right? Severely overvalued, that’s going to flip flop. Well historically because I’ve done lot, there’s over 4800 times this has happened. So there’s lots of data, right? So historically 25 ounces of gold would buy you a city block buildings and all during hyperinflationary events, governments must go through hyperinflation in order to go into this new currency. Because what I’ve not yet really been able to fully figure out, there’s still lots of things that are being floated around is what mechanism will they exactly use meaning central banks to justify creating this.

We know right now that it’s created from debt and they could still do that, which means you got to get rid of all that old debt. That’s what the hyperinflation is about. It’s to repay that debt with dollars that have zero value. And so but if you’re sitting there with gold money that holds its purchasing power when this flip flop occurs, guess what? You’re in the right place at the right time with the right asset so that you can buy then then undervalued income producing assets. And we’ll have a chance to see who is going to survive what corporations are going to survive.

Because corporations followed government, they’re sitting on so many debts. And remember how we’ve talked about in the past those zombie corporations, which are corporations that have not earned enough to pay all the interest on the debt that they carry, let alone touch any of the principal. And so what the banks were doing, they’re not doing it as much anymore. So we’ve got the rise of the zombies that we’re contending with as well. But what they were doing because they didn’t want, the banks didn’t want to show the losses on their books is they were lending these corporations enough money to pay all of that interest, which just means they’re compounding interest, which guess what, that’s what all the governments are doing.

They’re not making enough money to pay all the interest on the debt. I mean, deficit spending, right? You’re spending money you don’t have. So any of that interest, think about your credit cards. If you don’t pay at least all the interest, forget the principal, then what happens to that interest? It goes into the principal and now you’re paying interest on that interest and you are compounding that interest. You’re never getting out of debt ever. So will it happen 100%? I’ll go a gazillion percent. I would bet everything and anything that it will because it is happening and it has to happen.

The system must reset. There is no purchasing power left in this. The only thing that’s holding it together is the public confidence. And I think that by June of this year, the more rapid inflation will become even more apparent. And I’ve been tracking that inflation, that confidence level, and so does the government, right? Consumer confidence, inflation expectations, all of these kinds of things. It’s a con game. So they have to maintain your confidence and they also have to keep getting new money. Right? They also have to keep people from buying gold. And so you’re seeing record prices every day.

I mean we’re up in unprecedented, not entirely unprecedented. I mean it happened in the 70s, I guess, but you know, 50% gold in a year. And so if people are starting to buy it, then the price goes up and then it kind of accelerates the, the unraveling. And if we’re in a, for entering a risk off environment, which I think we were probably in a long time ago, it’s just been artificially propped up. Even in the worst case scenario, you’re retaining your wealth. But in the best case scenario, like you’re saying, there might be this wealth transfer situation where those who are, who hold the gold ultimately will be rewarded and Silver, in terms of, you know, having the ability to acquire assets at basically pennies on the dollar, literally.

That they’re not blowing this up in the media is a sign that they don’t want people to acknowledge this because this would quicken the. The. The unraveling. You said a couple things I’d like to touch on. So imagine here. Here is this Bitcoin, which is really this. Right. It’s not real, but, okay, that. That looks like gold. Can you imagine how much money would have gone into gold? This came out in January of 2009. Quantitative easing. So interest rates at zero and just massive amounts of money printing started in March of 2009. And other than speculators, most of the people that are involved in cryptocurrencies are trying to go around the system, though how anybody can think any of that stuff is around the system as, frankly, beyond me.

But how much would have gone into gold had they not come out with bitcoin? That’s why I’m saying that bitcoin is a Trojan horse. And they’ve been moving us in this direction since the 50s when they gave us credit cards, right? That. That’s really when this move started. It happens slowly at first. So, you know, when you. When you look at it and read the NSA white paper on how to create a mint, and I say, is a government agency. Maybe they’re still around, maybe they’re not today. I don’t know. Anything can happen right now. But you stop and you think about that and you realize, whose best interest is this in.

And you really have to step back and ask that question. When you own physical gold and physical silver, then you have become your own central bank. You are securing your freedom, which is singly. I’ve realized that this is really what I’m fighting for. I’m trying to. I’m on the Sound Money Movement Advisory Board, which is a global movement to get sound money, so physical gold and silver back into the monetary system again. If I have a seat at the table, I’m going to absolutely demand that it be convertible, because if it’s not, it doesn’t mean anything like we just saw in Zimbabwe.

It’s garbage, right? And I don’t care if I turn in this and I’m able to pull this out. This gives the public back their power. And to be honest with you, Nate, I think that this is the best opportunity that I have really ever seen to have that back. And when I see these articles on the gold revaluation account, on the confiscation There I’ve been starting to read articles on confiscation. I’m just doing a whole series on it that just started going out because people don’t realize they change names like inflation, taxation, royalties, those are all forms of confiscation.

They just give them different names so that people don’t realize that that’s actually what’s happening. But I believe in my heart of hearts and my bones of bones that this is our best opportunity to get sound money back in the system again. And that is my fight. And that’s. I’m going to Miami to work on legislation, going to be speaking with the speaker of the House on educating them with sound money is because governments, people don’t know what sound money is. It’s been taught out of us and we need to reteach people about it so that they can take their power back and say, why would I work for debt that is constantly losing value? How does that make sense? Yeah, I mean everything.

Yeah. If you were to just, if you think about it, you know, if you were to have that money in your bank and you just. If a savings account, I mean, forget it nowadays, but you know, it’s constantly losing its purchasing power. And the same thing, of course, occurs with taxation. You know, you can buy a house and own it, but if you don’t pay taxes on it for a few years while the government’s gonna basically expropriate it for themselves. And so this is where, you know, that’s one of those things. Like, I mean, I’m amazed it’s even legal to be honest, to buy gold.

I’m amazed that they re legalized it at all, you know, considering what it enables a person to do. And yeah, I’m with you 100%. I mean, we can’t say with certainty who this Satoshi character was. But you know, it seems to looking at the timing of it all, it would be a masterful 4D chess move for them to put something out that was decentralized and, you know, empowering and better than gold. And the price just keeps going up. And that’s how you, you think about the roaring twenties, right? When they legalize the Federal Reserve. It used to be this is a $1, this is a $1 gold piece.

Can you see how teeny weeny tiny it is? Right. So this used to back $1. Either a silver dollar or a silver certificate, which I have in, in this mess somewhere anyway, so it backed a dollar. All three of those things were in circulation at the same time when they legalized the Federal Reserve. Now they legalized that for every 20, this is a 20th of an ounce for every 20th of an ounce and now back $2.40. And so they printed a ton of new money, flooded the system with it. And what did you get? You got the roaring 20s, right? People have heard about the roaring 20s because there was so much cash floating around in the 80s when we transitioned onto a full debt based system.

Anybody here remember the greedy 80s? Greed was good. Gordon Gekko. Well, that was the transition from at least a quasi goal backed system to into a pure debt based system. And so now they’re transitioning us into a digital system. And so they allow. Look at the markets that are built up around this, right? I mean, what’s, what is. I have so many people that try and talk me into how great bitcoin is. And my question always is, tell me what its functionality is. Tell me what its functionality is. I can see value, right? But the value that they come up with is that you could put it on a little zip drive and take it anywhere in the world, which is valuable.

But I can buy an 8 million dollar 1 ounce coin and put it in my pocket and travel around the world with it and have that same purchasing power. But this is used in every single sector of the global economy. This crap. One place, one place. That’s it. So, you know, this is, this is a big fight. It’s why I like to be on prepper channels. It’s why I became a prepper. Because There is over 4800 currencies, fiat currencies that don’t exist anymore. But there’s lots of data to see what happened to the public. And so I, that’s when I started 2008.

I knew the system died. Absolutely. Note I was getting ready to retire. Well, forget that. I don’t think I’m ever going to retire now. But you know, I knew that food is the single biggest issue. So I was living in a little two bedroom condo, getting ready to retire. I was going to travel, you know, be gone a lot, so I could just lock the door and off I go. Instead, I ended up buying a house in dead central Phoenix and becoming an urban farmer. I don’t know what I was doing. Now I have people that do know what they’re doing.

But that’s how my, I developed. My mantra was I stood back and I said, okay, where do I feel vulnerable? Well, I knew food was a big issue, so I started planting food. And then it was security because I had this door where Somebody walked in, boom, they could just kick that door open. So I put security door there. So, you know, it’s my mantra is this food, water, security, barter ability, which anything physical, any talent you have is barterable. Wealth preservation, which is gold community, which is arguably the most important part, especially now, because we don’t have the same kind of time that I’ve had to figure all of this out and shelter.

These are the things that we all need to have a reasonable standard of living. But I don’t know too many people that have that luxury of time like, like I’ve had because I’ve been working on this hard and in earnest since really 2008. Yeah. And most of the current generations are so far removed from this. Like you’re saying, you know, that they need somebody to be a steward in this respect and kind of show them those things because we’re talking about gold and silver. But as you rightly said, these are just means to an end. The things that we need to sustain life are ultimately what we’re trying to secure.

And that wealth preservation tool and that barterability are both means to providing sustenance, leading a higher quality of life, whatever that might translate into. But, you know, things can happen, and this is why we, we prepare. And gold and silver are a way of storing that energy that you’ve accumulated over the decades for some people. And, you know, you’re looking at your retirement savings plan, but I mean, the market crashes. I mean, you know, then you’re pretty much sol. So you have to have that, that backup plan like you’re talking about. Well, absolutely. And what also happens? And it happens.

I mean, the strategy that I’ve developed is based upon these repeatable patterns, things that happen 100% of the time. There’s over 4800 documented times that what we’re going through right now has happened. And I kind of feel like if something has happened 100% of the time and we’re doing the same thing, we’re most likely to get the same results. And so what that really enables you. People are so convinced by the normalcy bias that they think it’s not going to happen this time. Right. This time. And we’re like, we’re into such deep levels of irrationality in that system that quote, like, you know, the market will remain irrational longer than you can remain solvent.

And now we’re in a whole new realm of that. It’s like that on steroids. So people genuinely think now is different. I mean, even, even I think, like, you Know, is this market ever gonna, I mean, can these, can the stock market just keep going up forever? I mean, maybe, I don’t know. But, but think about this for a minute, right? Think about this for a minute. In Venezuela, who has now gone through six new currencies in 2013, 14, 15 and maybe even 16, they had the best performing stock market on the planet, but their currencies have continuously gone to zero.

So just like that’s why I said don’t be blinded by those numbers because they really don’t mean anything at all. It doesn’t matter how much of this you have, it matters what you can convert it into. So if you can’t go and use this to buy food or water or shelter or anything, what, wallpaper your house, maybe it’ll help you stay warmer. Use it. I mean, think about the wheelbarrows of money. So, okay, we don’t have bills anymore. That’s even worse. You can’t even use it for kindling. You can’t even use it for kindling. And if everything you have is in the system and they don’t like your politics, boom.

We saw that happen to Canada and that was an absolutely legal truckers strike. And if you supported them, boom, you were cut out too. That amazed me when Canada to Canada, you know, because we kind of think about it just like it’s, it’s the US and it’s a free nation and all of that and you know, look at what they did to their population to control them. So you’ve got to have real money outside of the system, universal money. That’s what gold and silver does. And gold and silver, you know, when they, when they created the monetary system to begin with, and I’m not talking about 1913, I’m going back way further than that.

You know, they said, okay, we want money to be a tool of measure, a tool of barter, a short term store of value so you’re fairly paid for your labor and a long term store of value so that no matter when you use that money, it retains its same value purchasing power value. Well, when they brought this in, it mimics money, right? It mimics sound money, but it eliminated your long term store of value, didn’t it? Because to your earlier point, anybody that tries to save this knows it’s not going to buy the same thing in six months that it bought today or even a month.

Right? Because inflation erodes its purchasing power value. When we go into the digital system, what the central bankers have said, and you mark my words on this One, I’ll let you hold my toes to the fire. They’re going to sell it to the population as there will not be. And now remember, they’re going to do this during a hyperinflationary event. And they’re going to say, if you let us have this, there won’t be any more inflation. No, because what they’ve also said is they will have their finger on the economic pulse of the economy. 24, 7.

And their words, not mine. There are no limitations to how low they can push interest rates, meaning the negative rates, which they tested and didn’t work. But it doesn’t mean that they’re not going to do it because they’re also. They’re not talking about taking the bills away from us because that would be too noticeable. They’re talking about putting chips in whatever bills. To your point, you haven’t even used any. Any bills, even though you carry them. But they’ll put a chip in there that will reflect the negative rates in the banking system. So if you try and, you know, pull this out, it’s still going to go down.

You now have to make a direct deposit into your account for your paycheck. No choice about that. But you’re faced with negative rates, which means that as soon as it hits your bank account, it starts to lose value, it starts to eat up principal. Because once you get all the purchasing power, which is where we are, what do you attack? You attack principle. Interesting. I know, it sounds crazy, doesn’t it? Yeah. Well, then they try that in certain countries. Japan. Yeah. Yes, yes. It’s. They’ve been experimenting to see what can we get away with. I don’t even think they care whether or not it really works.

Right. Negative rates really didn’t inspire and stimulate the economy. And look at Japan, for goodness sakes. Japan has been in deflation since the early 90s when their bubble popped. Right. The idea is that you would spend the money, you’d be more likely to spend the money because you’d be worried about it losing its value. Is that it? That’s exactly it. You’re sitting there looking at your bank account. You know, you haven’t been shopping, and you watch your principal decline. What if likely to do? To your point, you’re likely to go out and put it in anything that will, or at least has a shot at stimulate the economy.

In theory. But there’s only so much stuff that’s the problem. Right. And it doesn’t work. It doesn’t work. It doesn’t work. Do you have any Thoughts on other commodities or even like gold mining or silver mining. Is that something you explore at all? Like different commodities like copper or palladium, platinum, other rare earth metals. Is this something that you’ve looked into or giving guidance on at any point? I, I pay attention, but this is a currency life cycle issue and therefore my focus is on the currency, metals and prepping. Yeah. So yeah, right now here in the US I don’t know what you’re experiencing in Canada, but eggs are $12 for a dozen eggs.

I have a whole bunch of backyard chickens. I have plenty of eggs. I can share eggs. And remember too, I have my bug out location. That is a totally off grid property and there’s no police. Yeah, you got to get far away because the police are lazy. They’re only willing to come out so far. So there’s a lot of space up here too. I know Phoenix is, is pretty populated, but up here there’s, you know, you watch your dog run away for weeks, we say, yes, that’s, that’s the way it is at my bug out location.

Nice. Well, hey, it’s been great having you out today. Where can people learn more about about yourself? And I know you have a YouTube channel. You’re no longer with ITM Trading. You’re now Lynette Zhang. And so we’ll direct people there. But where else can people find more information about this stuff? Well, I’m super active on YouTube and Twitter @ the Lynette Zhang and Instagram and Facebook, Annette Zhang and of course on our website. We’re building our new website right now, Lynette Zhang.com and we love, we actually love human interactions. So Our number is 833-G-L D Z A N G or 833-453-9264.

But we are really all about being of service in every single way that we can. And I would like to just bring out for viewers that gold and silver in any form when I’m holding up or some sterling silver flatware and chopsticks. Gold and silver in any form is monetary at its base. So there are all different ways that you can accumulate and create your own sound money portfolio at whatever economic level that you’re at. But the strategy that we execute at Zhang Enterprises is based upon all of those historic, repeatable patterns because there’s gold and then there’s gold and there’s silver and then there’s silver.

And so we always start with your goals. What is it that you’re trying to accomplish? And then we show you the tools that will help you accomplish all those different goals, whether it’s to protect what you’ve already accumulated or even if you are, you know, in. I don’t know what I did. I guess I put it back there. If you are doing the cryptocurrencies, you are doing stocks and bonds. I’m just saying be properly diversified so that if this goes away, you’re covered. And, and, and we. It’s very, very, very comprehensive, but simple and easy to understand.

And that’s what I like about you. You certainly make these topics more accessible to the average person. So we definitely appreciate that. And yeah. So if you guys want some financial consultation, then you got the number. So your phone might blow up, hopefully after this. It should blow up. It should blow up. And by the way, Tuesdays at noon on Mountain Central time, I do a live Q and A. And there are no questions unless they’re bigoted or nasty. I mean, even if they’re, if they’re not, you know, even if you go, lynette, you don’t know crap about what you’re talking about.

Those questions, I will answer them. Right. It’s just bigoted questions or any of that. Yeah. Awesome. Well, I appreciate it, and it’s been great having you, and we’re gonna obviously have to have you back. Maybe we’ll have like 3, 500 or 4,000 show special or something like that and just get you and Gerald and Peter Schiff and everybody on deck here and shoot the breeze. And maybe you should come down and we should go to my bug out. Absolutely. I’m down. I mean, it’s. I’m not, you know, I’m used to the cold weather, so I don’t know how I’d handle those Phoenix temperatures.

But I could come when it’s in the cooler season, which I presume is ending soon, so. Yes, it is, but it’s a lot warmer than where you are right now. We’re minus 40, like I was telling you. And there’s no heat in this building, so I’ve been. I got an electric heater here trying to keep me warm. But, you know, you guys are lucky down there, I can say that much. But not so lucky in summer. I, I don’t envy your position in summer one bit. So out is at a very high altitude, so it’s okay, 30 degrees cooler.

So I, I spend a lot of time, as much as I possibly can. I spended the bug out anyway because I, I love it up there. Cool. Well, I’ll bring down a communist cameraman or two. And we’ll take a little tour. Let’s do it. All right. Talk to you soon. Lynette, thanks for coming out. My pleasure. The best way to support this channel is to support yourself by gearing up@canadianpreparedness.com where you’ll find high quality survival gear at the best prices. No junk and no gimmicks. Use discount code prepping gear for 10% off. Don’t forget the strong survive, but the prepared thrive.

Stay safe.
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