May 17, 2025 • 37 mins
What if everything you've been told about money and wealth preservation is fundamentally flawed? In this eye-opening conversation with Lynette Zhang, a financial expert with over 50 years of market experience, we explore why physical gold remains the ultimate safe haven during times of monetary uncertainty.
"If you don't hold it, you don't own it," Zhang states emphatically, challenging conventional financial wisdom. Drawing on her background as a banker and stockbroker who has studied currency life cycles since 1987, she reveals the predictable patterns that signal our current monetary system's final stages. With the US dollar having lost 97% of its purchasing power, Zhang argues we're witnessing the death throes of fiat currency—something central banks worldwide seem to acknowledge as they accumulate gold at historic rates.
The conversation takes a fascinating turn when Zhang calculates gold's true fundamental value at over $40,000 per ounce—far above current market prices. This isn't wishful thinking but based on dividing global debt by all existing gold, revealing just how severely undervalued the metal remains despite recent price increases. Zhang explains how governments suppress gold prices through paper markets because "a rising gold price is an indication of a failing fiat currency."
Perhaps most compelling is Zhang's framework for diversification. While many advisors consider stocks and bonds sufficient diversification, Zhang demonstrates why tangible assets like physical gold and silver are the only true portfolio diversifiers during a currency transition. As she puts it: "During transitions, wealth never disappears, it just shifts location."
Whether you're deeply concerned about monetary policy or simply looking to protect your financial future, this conversation provides actionable insights on positioning yourself for what Zhang believes is an inevitable currency reset. Subscribe and share your thoughts on preparing for financial uncertainty in today's rapidly changing world.
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
Is it fair to say that you are a gold bug?
Speaker 2 (00:03):
Anybody that wants to stay independent needs to have
sound money that is beyond anygovernment's or central bankers
control and cannot be inflatedaway.
And the reason why it can't beinflated away, and okay, I'm
going to throw this one back atyou and think about this right,
it sounds like you don't trustthe Fed Is that a fair statement
(00:27):
.
Let me just put it this way Ifyou don't hold it, you don't own
it.
No, I don't trust the Fed.
The Fed is there to support thebanks and the corporations, not
the public.
And they're there to regulatethe rate and speed of inflation.
But the problem is is they ofinflation?
(00:49):
But the problem is is they?
A rising gold price is anindication of a failing fiat
currency.
That's why and governmentsdon't want you to know that
their money, your money this isthe real trend is the purchasing
power you know.
They don't want you to knowthat it's failing.
Speaker 1 (01:04):
My name is Michael Guy, publisher of the Lead Lag
Report.
Joining me here is LynetteZhang.
Now, lynette, you and I havedone a couple of these in the
past.
It's been a minute and I wasjust commenting on those two
big-ass gold bars that it lookslike you have on your table.
We'll maybe touch on that, butintroduce yourself to the
audience.
For those who are not familiar,who are you?
What's your background?
Have you done throughout yourcareer?
What do you do now?
Speaker 2 (01:23):
Well, excellent.
Well, right now I have ZangEnterprises and I've been in
these markets on some levelsince 1964, and I'm 70.
So I was 10 years old, but I'vebeen a banker.
I was a stockbroker at Shearsonand I've been studying currency
life cycles since 1987.
(01:43):
And what I discovered when Iwas doing that is that
currencies, like humans, haverepeatable patterns, that if you
know how to recognize them, youcan tell where we are in this
trend cycle and therefore whatis the next most likely outcome,
so you can get into a positionto have the wealth transfer your
(02:03):
way.
At Zhang Enterprises, we executea sound money strategy.
Now, sound money is money.
It's physical gold, physicalsilver that have been money for
thousands of years, but it's,above all, governments and,
above all, central bankers.
But again, going back to thoserepeatable patterns, the
(02:26):
strategy that we execute forclients is to help them become
their own central bankers with afoundation of sound money,
physical gold and silver, and itis the true diversifying tool,
and everybody better have someright now, let me tell you.
But the goal is to get soundmoney back in the system.
(02:48):
Again, to be perfectly frankwith you, because we're
commissioning, it sounds likeyou don't trust the Fed.
Speaker 1 (02:53):
Is that a fair statement?
Speaker 2 (02:55):
Uh, let me just put it this way If you don't hold it
, you don't own it.
No, I don't trust the Fed.
The Fed is there to support thebanks and the corporations, not
the public, and they're thereto regulate the rate and speed
of inflation.
But the problem is, is they?
They're between a rock and ahard place, right?
If they keep the rates high orraise them more to fight
(03:20):
inflation, well then that's notwhat the markets want.
The markets want more easymoney.
You asked what these were.
These are my Fed guns righthere.
All they have to do when theywant to create inflation is to
create a whole bunch of newmoney that then goes into the
(03:40):
intangible markets and make themlook like they're going up, but
every time they do that, thepurchasing power value of the
currency goes down.
That's simple.
So, yeah, no, I don't trust theFed.
Speaker 1 (03:57):
You have to tell me where you bought that.
Speaker 2 (04:00):
I actually got them on Amazon.
Speaker 1 (04:04):
I am going to buy every single one of those I can,
and probably I'm going to stealthat from you.
I guess there's no silverversion?
Right, there's got to be thegold version.
There's no silver version.
Speaker 2 (04:13):
Different color versions.
So yes, you can get whateveryou want.
Speaker 1 (04:17):
All right.
So you said something which Iwant to hit on a little bit.
You said if you don't hold it,you don't own it.
I have on a little bit.
You said if you don't hold it,you don't own it.
I've seen these arguments forthe longest time that there's a
difference between physical goldand paper gold.
Let's touch on that because onthe one hand it sounds
conspiratorial, on the otherhand I kind of get it.
Speaker 2 (04:37):
Well, let me first start by saying that it was the
Bank for InternationalSettlements, which is the
central bank, or central bank intheir piece, that they did on
what place for gold in foreignexchange reserves.
So acknowledging both that goldis sound money and what they
(04:58):
say is gold is the onlyfinancial asset, not one of two,
not one of five the onlyfinancial asset that runs zero
counterparty risk if you hold it.
So the difference between anETF, which is really what a lot
(05:21):
of people think, they're buying,gold no, what they're actually
buying are shares of a trust.
They do not have access to theunderlying physical gold.
In other words, gold is notredeemable from these funds.
So these funds are merelydesigned to track the spot gold
(05:43):
market, but the spot gold marketcan and does create a whole lot
of contracts for gold andsilver.
That they don't exist right nowbecause there's a finite amount
of gold and silver.
Whether it's in the ground orabove ground is not relevant.
There is a finite amount.
But the ETFs, particularly thesilver SLV, they had to change
(06:08):
their prospectus in I think itwas 2022 or somewhere in there
to simply mirror what happens inthe spot gold market.
The spot gold market reflectscurrent trading value.
It does not reflect the truevalue of an ounce of gold or an
(06:29):
ounce of physical silver.
And in an ETF, what they do andyou can see it if you go to I'm
sure you're familiar withstockchartscom, which is free,
and if you put in a relativeperformance chart, you could
take the spot market, so dollarsign G-O-L-D, comma G-L-D, and
(06:50):
do a relative performance chartand what you will see is it's
actually a diminishing assetbecause they sell off parts of
their gold holdings and theirsilver holdings to pay their
daily ongoing management fees,silver holdings to pay their
daily ongoing management fees.
So you'll notice that spot isup here and it does go up and
(07:10):
down with it, but there is a gapthat is getting wider and wider
and wider.
So there isn't really all thegold underlying that people
think there is and they don'thave any access to it anyway.
Speaker 1 (07:23):
I see a question off of YouTube from a live viewer.
We see a massive divergencecurrently in the gold to silver
ratio.
Ah, the gold to silver ratio.
I love that ratio.
Everyone references that.
Has this permanently decoupled,or will this ratio, or will we
see this ratio coming closer inthe future?
So first of all, let's talkabout why that matters
historically.
Speaker 2 (07:45):
Well, that's a great question.
Great question really, becausethis is a one dollar gold coin.
You see how tiny it is.
It's a 20th of an ounce of goldit was equal to.
This is not an old, uh, silverdollar, but it's like a silver
dollar.
So it was a 20th to one ratiogold to silver $1, $1.
(08:07):
And historically that ratio Ithink the person that wrote in
said it's somewhere around ahundred to one, I think
somewhere in that vicinity rightnow Well, historically, what'll
happen is that ratio betweengold and silver will get more
(08:28):
and more narrow, maybe goingback to that 20 to one ratio.
But frankly, I don't really carethat much about the ratio
because I've done enough studiesduring hyperinflationary events
, which I think is in our nearfuture, and what you see is that
(08:51):
we will probably see that gapgrow more narrow.
But once we hit hyperinflation,gold is the primary currency
metal and that's the one thatflies.
So what silver does is itmaintains your ability to
purchase the same goods andservices.
Over time, gold expands thatability.
So, yeah, that ratio do.
(09:11):
I think it's permanently brokenPretty much because this is a
currency life cycle event.
It's not during the life cycleof the currency that we're in,
that's when the ratios can getmore narrow.
But this is a currency lifecycle event, so I don't
anticipate them getting muchmore narrow, certainly not going
(09:33):
back to the 20 to one ratio andI say that with a sigh because
you know I just did this theother day so I'll be fairly
accurate in it.
When you take a standard foodbasket from the Bureau of Labor
Statistics going back to 1913,1971, and then I just did it
(10:01):
maybe a week ago from 1913 to2025, roughly about 2,600%,
somewhere in that vicinity Spotgold even manipulated spot gold
is up over 3,000%, so itmaintains your ability to
purchase the same goods andservices.
(10:23):
But spot gold is up over13,000%, so it expands your
ability to purchase the samegoods and services.
So I know that was kind of along answer for that, but yeah.
Speaker 1 (10:41):
What about other like ratios I mean?
I also hear things like gold tooil or gold to gold.
I mean any historicalsignificance to that, or silver,
for the one that everyone likesto focus on the most.
Speaker 2 (10:52):
Well, no, they focus on gold to real estate.
They'll focus on gold too, butbut this is just in the last
hundred plus years, notthousands of years, not
thousands of years.
And that's what I'm reallygoing back to, because there
have been 4,800 currencies overtime actually most of them since
we went off the gold standardthat do not exist anymore
(11:17):
because governments can't stopdoing this, central banks can't
stop doing that, and so theyhyperinflate away all purchasing
power value in the currencies.
So the ratios depends on.
What's going on would determinethe level of importance.
And for me, knowing without adoubt, I started talking about
(11:42):
the system dying and a need fora reset back in 2008.
That's when it really died.
And I was watching because itwas Shearson Shearson's, my alma
mater.
That's where I learned aboutcurrency life cycles, so I was
paying very close attention.
And when that went out, whatdid they do?
They just printed, printedright QE to the moon and
(12:06):
inflated those stocks, bonds, orreflated, I should say, all of
those targeted assets, realestate and stocks particularly.
They came out and said it we'regoing to reflate them.
So now all of that inflationneeds to run out of them.
And what position does that putyou in?
Can they inflate it?
(12:28):
I mean, what happens when weget to zero?
Have you looked at the FederalReserve's purchasing power chart
?
I prefer not to cry.
Well, for me it's all abouteducated choices, right?
And the Federal Reserve, thatis the keeper of this stuff and
(12:49):
their job is really to regulatethe rate and speed of inflation.
If you go on the FederalReserve Education Department,
also known as the FRED, and youput in the search bar purchasing
power of the consumer dollar,put in the search bar purchasing
power of the consumer dollar,you'll see on the left-hand axis
where it started out as adollar.
(13:10):
And what do you see at thebottom of that axis?
A big fat goose egg.
And officially we have threecents left in purchasing power.
And what holds it together isconsumer confidence and
inflation expectations.
And so it's a consumerconfidence and inflation
expectations, and so it's a congame.
Quite honestly, this is backedby what?
(13:32):
The full faith and credit ofthe government.
Have you ever bothered totranslate those words?
As long as you trust them, youhave faith.
You will continue to loan themmoney, give them credit, but the
(13:52):
world is turning away andlosing faith in the dollar and
not wanting to buy ourtreasuries, which is how the Fed
does this.
So that's going to put a damperon things.
And what do we do when we getto zero?
We're three cents away.
What do we do when we get tozero?
It's just the confidence that'sholding the system together.
When that goes, we're inhyperinflation.
Speaker 1 (14:15):
And, of course, the key part of the word confidence
is con, as we know, but I thinkyou're just finding any excuse
you can to just shoot that,which I appreciate that that's
the case.
Speaker 2 (14:24):
Holly, it's great exercise picking this stuff up.
Speaker 1 (14:27):
I'm wearing, not a product placement.
I'm wearing a tailored athleteshirt because I am now big on
the physical fitness and that'sone way to work the biceps, I
guess Okay.
And that's one way to work thebiceps, I guess Okay.
So we touched on that.
Gold obviously has had asizable run.
I've been quite bullish, upuntil recently at least, on
short-term movement October 2023, got very bullish on it.
I kept on saying gold issending a warning.
(14:49):
Gold tends to be something thatbenefits from geopolitical risk
.
Every time you see some kind ofwar strike or something like
that, you see gold prices spike.
There's the long-term argumentfor the investment holders and
there's the short-term taxableside.
At what point do you say, atleast in the short term, gold
prices could be vulnerable?
(15:10):
I happen to think that, akin tothe sort of magazine cover
indicator, when you havesomething that's on Forbes or
Barron's or any otherpublication, you're probably
close to a top.
That happened, I think, a weekor two ago.
What are your thoughts on thatside of things?
Speaker 2 (15:24):
Well, I think that there's a couple of different
ways to look at it.
So, yes, with a very rapid runup, technically it would be in
spot, gold would be overbought.
So if you're trading well, youwould use all of the technical
indicators that you would forany other stock or anything else
.
So it's not a surprise thatthere's profit taking in a
(15:46):
pullback in here, because therun-up was quite rapid.
But then there's a couple morethings.
Number one there's the physicalonly market.
So let me explain that, right,this is my one, well, and I'm
wearing my bullion travelbracelet, but this is the only
(16:06):
bullion that I personally own.
This will flow with the spotmarket up or down and then,
depending upon demand, thepremiums to get your hands on
the physical are going to growor shrink, right, but this
happens to be a pre-1933collectible coin.
(16:27):
This is a physical only market.
So when you look at what'shappening in these markets, what
I think is extraordinarilyinteresting is when you look at
ultra's happening in thesemarkets.
What I think is extraordinarilyinteresting is when you look at
ultra rarities.
So these are super rare pre 33coins that were might go for
(16:49):
like 15 million bucks, somethinglike that.
Right, that typically willbreak out and has broken out
when there is a breakout, beforeanything else, because it's
smart money.
How many people can afford 15million dollars for one ounce of
gold?
Then the next area, which isthe area that that we work in in
(17:13):
Zhang Enterprises and we dobullion as well.
That's not a problem.
We sell all of this.
But the next area is more.
They're still rare, they'reslabbed and all of that, but
that will typically break outnext, because these are the two
ultra-rarities where the generalcollectible market are physical
(17:36):
only markets.
So you're talking about thespot market, but there are other
markets that help you reallyunderstand where we are again in
this trend cycle.
The last one that typicallybreaks out or does movement is
in the spot market, but it's thepeople in the know that are
(17:57):
showing you the way to go andthat's making all time highs,
not pulling back at this time.
Speaker 1 (18:03):
Is it fair to say that you are a gold bug?
I feel like we should definethat term, because that's a term
that I equate it to being aBitcoin maxi, and I'm not a huge
fan of the idea of anybodybeing super convinced in
anything, because nobody knowswhat tomorrow brings in general.
But I mean, how should we thinkabout sort of the extent of
conviction?
Speaker 2 (18:21):
My level of conviction is huge.
I don't think of myself as abug.
I could call maybe you a stocksnake, right?
I mean, it's a derogatory termthat is absolutely designed to
turn people away from gold,which is the only asset that can
protect them, because what itdoes is it fights inflation.
(18:42):
You cannot inflate this away.
But how committed am I?
Well, I can tell you this.
I started in these markets whenI was 10 years old and I've
learned an awful lot as astockbroker and as a banker, and
I got to go back to my currencylife cycles.
This currency is shifting.
(19:03):
There is virtually nopurchasing power left in the
currency.
We need to go into a new systemand I know you've heard about
the reset.
I started talking about that in2009 after I watched a
Bloomberg interview withChristine Lagarde and in that
20-minute interview which theyhave subsequently deleted and I
(19:26):
didn't know enough to save it,unfortunately, other than the
link she used the term resetabout 29 times how we had to
reset the financial system andthis system and that system.
And I have a tendency tobelieve my technical data and
believe the people that areactually in the know.
(19:48):
And what have we been seeing?
We've been seeing globalcentral banks buy more gold than
they ever have since historybegan.
Why would they do this if it'sjust an old relic right?
That doesn't really make sense.
It's not what central banks areabout.
They're not really abouttradition.
They're about remaining, Idon't know, maybe a little
(20:11):
independent, not everywhere.
Maybe we have that in ourfuture, that the Fed loses the
independence here.
But anybody that wants to stayindependent needs to have sound
money that is beyond anygovernment's or central banker's
control and cannot be inflatedaway.
And the reason why it can't beinflated away.
(20:34):
And OK, I'm going to throw thisone back at you and think about
this right Gold, physical gold,physical silver is used in every
single sector of the globaleconomy.
Therefore, it has the broadestbase of functionality and the
broadest base of demand.
(20:56):
That's why it's abovegovernments and central bankers,
because of that demand and thatuse.
So yeah, I'm all in.
I haven't always been all in.
I don't anticipate being all inin the future, but there isn't
even one little doubt in my mind.
Look at the purchasing powerchart right.
(21:17):
Look at the monetary velocitychart.
There are a whole bunch ofdifferent.
Look at the confidence.
What's happening with theconfidence?
This is a con game.
When that confidence goes away,it goes away, so I can always
convert this into any otherthing that I want anywhere in
the world.
Um yeah, I'm at safety.
(21:38):
I'm at absolute safety.
Right now, I do not trust thesemarkets.
Speaker 1 (21:44):
Sorry, probably not what you want to do sorry about
I and, by the way, I I certainlyhope I'm not a stock snake,
because I'm apparently.
Some people think I'm a perverton stocks.
Not at all.
Speaker 2 (21:54):
Uh, I just think there's cycles, everything gold
obviously, now is the cycleright well, the gold is a cycle
because of where we are in thetrend, I mean, and I would go.
It really is just that simple.
But here I'm going to throwsomething else out at you After
when I saw it happen in 2008,.
I became a prepper.
I was not much of a gardener ora farmer, but here's my mantra
(22:17):
I was not much of a gardener ora farmer, but here's my mantra
Food, water, energy security,barter ability, wealth
preservation, community andshelter, because these are all
the things that we need to livea reasonable standard of living.
And when we transition from onecurrency and what happens is
(22:38):
when one currency dies, anotherone pops up.
So I'm not saying we're goinginto this nothing, because what
you need, then, is a bridge toget you from one system into the
next system with yourpurchasing power intact, so that
(22:59):
you've got something to workwith on the other side of this
mess.
And if you have all of thoseother things and community is
arguably become actually, Iwould call myself a community
bug more than anything else,because we're running out of
time for this.
So I'm sorry to tell you butyeah, I am all in.
I don't own any fiat moneyproducts other than cash, and
(23:26):
that's only because that's ourtool of barter.
If it wasn't, I wouldn't evenhave any cash right now.
Speaker 1 (23:33):
I thought that was monopoly money, and I'm right.
Apparently that is monopolymoney.
Speaker 2 (23:37):
And actually I think I have some Monopoly money in
here, because what's thedifference?
Speaker 1 (23:42):
I think a lot of people can certainly relate to
that.
I see a lot of.
I see Wowie giving the whole100, 100, 100 message on that on
X, appreciate Wowie watchingthis.
It's funny referencing peopleby their username for handles.
Okay, so clearly a cycle forgold.
Uh, gold is acting as a sponge.
(24:03):
You can argue for scared money,but I do think again, there's
some short-term speculativemomentum, um, yours.
How should one think about forthose that are not all in right
and and are trying to figure outhow to position Right?
How do you think about riskmanagement?
Because the reality is, iffinancial advisors are watching
this and saying, I'm with you ongold, I share the same
(24:24):
sentiment.
There's a fiduciaryresponsibility aspect to
portfolio management.
So, not financial advice, butwhat do you typically see in
terms of how people pair itagainst stocks, bonds or houses?
Speaker 2 (24:33):
Well, as part of the strategy, it is a true
diversifier right, and we canlook at what the fundamental
value of an ounce of gold isreally worth.
So, even though you're lookingat the stock market and you see
it rising and you go, wow, lookat that, gold is at all time
highs, or, okay, it's had alittle pullback or whatever.
(24:54):
But what would you think if Itold you the true fundamental
value of an ounce of gold isover $40,000?
So, at $3,300, $10,000, $20,000undervalued right Now, that
might sound absolutelyoutrageous.
So how do I come up with thatnumber?
(25:14):
Because, quite frankly, I thinkit's critically important that
everybody understands the truefundamental value of any
instrument or any asset.
That's the only way you canpossibly know.
Is something undervalued, fairlyvalued or overvalued?
Therefore, do I want to buy it,do I want to hold it?
(25:36):
Do I want to liquidate it?
And so you have to go back tothis is sound money.
This is government debt basedfiat money.
So how do I know how much thisis really worth issue?
(25:59):
So you can do it country tocountry, but I do it globally
and I look at all of the debtthat has been created in the
world because, oops, wrong oneCause that's how this is created
is through debt.
Speaker 1 (26:07):
I can't stop giggling .
I'm sorry, I just you'rekilling me here.
Speaker 2 (26:11):
There's a reason why.
Hey, I could also pull out mymagic eight ball if you ask me a
question that I can't answerand I'll let that answer for me.
So you got to have some fun.
What I talk about is reallysuch ugly stuff, but I am
definitely not a doom andgloomer.
What I am is, during thesetransitions, wealth never
(26:32):
disappears, it just shiftslocation.
So I try and help people getinto the position to have the
wealth shift your way.
But going back the way that youknow the true value of an ounce
of gold.
If they were to do thatovernight reset on a one-to-one
basis tonight, right is you takeall the debt that's been
(26:53):
created, because that tells youhow much new money has been
created in this system, and youdivide it by all the gold that
exists in the whole world,because gold, all gold, it's
indestructible.
So we can account for about 98%of all of the gold that has
ever been mined, plus, on anannual basis.
(27:15):
The department of the interiordoes a study and they publish a
report to tell you how much goldis yet in the ground.
And I take how much has beenmined, how much is yet in the
ground, and I divide all thedebt by that number and that
gives me somewhere north of$40,000.
(27:35):
Somewhere north of $40,000.
And, as outrageous as thatmight sound, what's the face
value of this one ounce goldcoin?
$20.
And if you had said to thisperson you know, one of these
days you're going to see gold at$3,400 an ounce, they would
have looked at you like you hadthree heads.
(27:56):
They would have looked at youlike you had three heads.
So I can tell you that gold isseverely undervalued.
Why?
That's the next question.
Well, why?
Why isn't the market justlapping this up?
And it's simple A rising goldprice is an indication of a
failing fiat currency.
(28:21):
That's why and governments don'twant you to know that their
money, your money this is thereal trend is the purchasing
power.
They don't want you to knowthat it's failing, so they have
to suppress it by creating awhole bunch of gold that does
not, nor ever will exist.
And in fact, back in the day sothis was 2009 before the
(28:43):
central banks really got intothe derivative bets there was a
little bit in foreign exchange,but not too much at that point
and probably the data that theywere publishing was a little bit
more honest, but I saw itmyself and did the calculations,
so I know this is true.
According to the Bank forInternational Settlements, in
(29:04):
2009, for every one ounce ofphysical gold that exists, there
were over 62,000 digital ouncesof gold.
So the market reads it as ifthat gold exists, when it does
not.
And I would like to point outsomething else.
(29:25):
In this country, in the US, weprimarily work in contracts, not
the physical metal.
But what have we seen recently?
Somebody taking delivery onthose contracts.
That's somebody in the knowthat is taking delivery of the
physical metal.
And how did they get thatphysical metal?
(29:46):
Because we don't deal that muchin physical metals in this
country.
Oh, the Bank of England nicelysent over the gold that it's
holding for other countries tothe US, and then that gold got
delivered out.
You tell me what you thinkmight just happen when because I
(30:12):
don't think this is an if whenthose countries ask for their
gold back, where is the Bank ofEngland going to get all the
gold that it shipped to the US?
Speaker 1 (30:22):
Well, since you carry so much gold, I think they're
going to call you up.
I think it's the way that thishas to play out.
Hold on Before we wrap up,because we're a little bit out
of time.
I do want to get anotherquestion here from Spanky.
Is the actual username?
I have to say that seriouslyFrom Spanky, I'd like to know
her thoughts on gold miners.
So let's talk a little bitabout the company side as
(30:43):
opposed to the commodity side.
Speaker 2 (30:45):
Right, it's really interesting.
Gold mining, I think, is a veryhard field and you would think
that you're buying gold, butyou're not.
You're buying a company.
So mining stocks do not performas well and I can tell you,
because I was certainly there in2008 and even have a comparison
chart, this isn't the time.
(31:08):
This isn't the time to be inintangibles.
I'm sorry I probably shouldn'tcompletely say that, but if
you're going to, you wanna beproperly diversified and have
some physical metals outside ofthe system to make sure that
you're properly balanced, andyou can do it against that
$40,000 number.
So if you have, say, 400,000 inthe stock market, make sure
(31:33):
that you have 10 ounces or theequivalent of gold.
Now you've got somediversification.
Understand that as thegovernment prints more money,
which is coming up because we'refighting deflation.
So that's going to happen.
Only one way to fight deflation, that's with inflation.
Only one way to fight inflation, that's with deflation.
(31:55):
And you know what we havecoming up.
I think we'll make this run upto thirty five hundred on.
I mean, it's chump change, it'snothing.
But there is a strategy that Iwould say to employ for those
that want to stay in the marketsor even go into
cryptocurrencies.
Whatever you want to do, youhave to do what you're
(32:16):
comfortable with.
Just make sure that you'reproperly diversified and one
intangible diversifying anotherintangible is not
diversification, right.
It's got to be a tangible assetthat diversifies and protects
what you're holding intangibly.
So it should be used as adiversifier With real estate
(32:38):
there are ways to pay off thatdebt and uses the same strategy
that the government uses torepay debt with dollars that
have virtually well less andless and ultimately no value.
There's a way to make sure thatyou can maintain your property
taxes, because those are acouple threats to people in
(32:59):
terms of real estate.
So it depends on what you own,what your equity is, and then we
look at each piece and whatyour debt is, and we look at
each piece and we build thisstrategy in layers which, by the
way, actually includes somelevel of cash, depending upon
what you're trying to accomplishand what your circumstances are
(33:22):
.
So I just think it is theultimate diversifier and puts
you in a position to maintainthe wealth that you've already
accumulated and expand yourwealth base, because we know
that what goes up must come downand what goes down will go up
if there's real intrinsic valuein it.
So this real estate, thesemarkets that are overvalued,
(33:45):
that's going to flip flop and ifyou're holding your purchasing
power, you get to take advantageof them.
And that's why I said you know,at the moment, yeah, I'm all in
, but that hasn't always beentrue and it's not.
I don't expect it to be true inthe future either, but right
now, because of where we are,yeah, I'm all in.
Speaker 1 (34:05):
Lynette, for those who want to track more of your
thoughts, more of your work or,in general, want to get involved
with what you're involved in.
Where would you point them to?
Speaker 2 (34:17):
Well, you know, I'm very, very active on YouTube and
Twitter at the Lynette Zhangand Instagram and Facebook at
Lynette Zhang and I love ourphone number, which is
833-GLD-ZANG, so we love humancontact Kind of old-fashioned
(34:41):
that way.
Speaker 1 (34:41):
I am jealous that you have that number.
I don't think I can possiblycompete against that, no matter
how creative I can get, so watchthis again, folks.
This will be an edited podcaston Delete Live.
I'll see you all on the nextepisode, and I may now end up
buying that money gun thatlynette's got.
Uh, thank you, lynette,appreciate it pleasure.
(35:01):
Thank you.
Is it fair to say that you are a gold bug?
Speaker 2 (00:03):
Anybody that wants to stay independent needs to have
sound money that is beyond anygovernment's or central bankers
control and cannot be inflatedaway.
And the reason why it can't beinflated away, and okay, I'm
going to throw this one back atyou and think about this right,
it sounds like you don't trustthe Fed Is that a fair statement
(00:27):
.
Let me just put it this way Ifyou don't hold it, you don't own
it.
No, I don't trust the Fed.
The Fed is there to support thebanks and the corporations, not
the public.
And they're there to regulatethe rate and speed of inflation.
But the problem is is they ofinflation?
(00:49):
But the problem is is they?
A rising gold price is anindication of a failing fiat
currency.
That's why and governmentsdon't want you to know that
their money, your money this isthe real trend is the purchasing
power you know.
They don't want you to knowthat it's failing.
Speaker 1 (01:04):
My name is Michael Guy, publisher of the Lead Lag
Report.
Joining me here is LynetteZhang.
Now, lynette, you and I havedone a couple of these in the
past.
It's been a minute and I wasjust commenting on those two
big-ass gold bars that it lookslike you have on your table.
We'll maybe touch on that, butintroduce yourself to the
audience.
For those who are not familiar,who are you?
What's your background?
Have you done throughout yourcareer?
What do you do now?
Speaker 2 (01:23):
Well, excellent.
Well, right now I have ZangEnterprises and I've been in
these markets on some levelsince 1964, and I'm 70.
So I was 10 years old, but I'vebeen a banker.
I was a stockbroker at Shearsonand I've been studying currency
life cycles since 1987.
(01:43):
And what I discovered when Iwas doing that is that
currencies, like humans, haverepeatable patterns, that if you
know how to recognize them, youcan tell where we are in this
trend cycle and therefore whatis the next most likely outcome,
so you can get into a positionto have the wealth transfer your
(02:03):
way.
At Zhang Enterprises, we executea sound money strategy.
Now, sound money is money.
It's physical gold, physicalsilver that have been money for
thousands of years, but it's,above all, governments and,
above all, central bankers.
But again, going back to thoserepeatable patterns, the
(02:26):
strategy that we execute forclients is to help them become
their own central bankers with afoundation of sound money,
physical gold and silver, and itis the true diversifying tool,
and everybody better have someright now, let me tell you.
But the goal is to get soundmoney back in the system.
(02:48):
Again, to be perfectly frankwith you, because we're
commissioning, it sounds likeyou don't trust the Fed.
Speaker 1 (02:53):
Is that a fair statement?
Speaker 2 (02:55):
Uh, let me just put it this way If you don't hold it
, you don't own it.
No, I don't trust the Fed.
The Fed is there to support thebanks and the corporations, not
the public, and they're thereto regulate the rate and speed
of inflation.
But the problem is, is they?
They're between a rock and ahard place, right?
If they keep the rates high orraise them more to fight
(03:20):
inflation, well then that's notwhat the markets want.
The markets want more easymoney.
You asked what these were.
These are my Fed guns righthere.
All they have to do when theywant to create inflation is to
create a whole bunch of newmoney that then goes into the
(03:40):
intangible markets and make themlook like they're going up, but
every time they do that, thepurchasing power value of the
currency goes down.
That's simple.
So, yeah, no, I don't trust theFed.
Speaker 1 (03:57):
You have to tell me where you bought that.
Speaker 2 (04:00):
I actually got them on Amazon.
Speaker 1 (04:04):
I am going to buy every single one of those I can,
and probably I'm going to stealthat from you.
I guess there's no silverversion?
Right, there's got to be thegold version.
There's no silver version.
Speaker 2 (04:13):
Different color versions.
So yes, you can get whateveryou want.
Speaker 1 (04:17):
All right.
So you said something which Iwant to hit on a little bit.
You said if you don't hold it,you don't own it.
I have on a little bit.
You said if you don't hold it,you don't own it.
I've seen these arguments forthe longest time that there's a
difference between physical goldand paper gold.
Let's touch on that because onthe one hand it sounds
conspiratorial, on the otherhand I kind of get it.
Speaker 2 (04:37):
Well, let me first start by saying that it was the
Bank for InternationalSettlements, which is the
central bank, or central bank intheir piece, that they did on
what place for gold in foreignexchange reserves.
So acknowledging both that goldis sound money and what they
(04:58):
say is gold is the onlyfinancial asset, not one of two,
not one of five the onlyfinancial asset that runs zero
counterparty risk if you hold it.
So the difference between anETF, which is really what a lot
(05:21):
of people think, they're buying,gold no, what they're actually
buying are shares of a trust.
They do not have access to theunderlying physical gold.
In other words, gold is notredeemable from these funds.
So these funds are merelydesigned to track the spot gold
(05:43):
market, but the spot gold marketcan and does create a whole lot
of contracts for gold andsilver.
That they don't exist right nowbecause there's a finite amount
of gold and silver.
Whether it's in the ground orabove ground is not relevant.
There is a finite amount.
But the ETFs, particularly thesilver SLV, they had to change
(06:08):
their prospectus in I think itwas 2022 or somewhere in there
to simply mirror what happens inthe spot gold market.
The spot gold market reflectscurrent trading value.
It does not reflect the truevalue of an ounce of gold or an
(06:29):
ounce of physical silver.
And in an ETF, what they do andyou can see it if you go to I'm
sure you're familiar withstockchartscom, which is free,
and if you put in a relativeperformance chart, you could
take the spot market, so dollarsign G-O-L-D, comma G-L-D, and
(06:50):
do a relative performance chartand what you will see is it's
actually a diminishing assetbecause they sell off parts of
their gold holdings and theirsilver holdings to pay their
daily ongoing management fees,silver holdings to pay their
daily ongoing management fees.
So you'll notice that spot isup here and it does go up and
(07:10):
down with it, but there is a gapthat is getting wider and wider
and wider.
So there isn't really all thegold underlying that people
think there is and they don'thave any access to it anyway.
Speaker 1 (07:23):
I see a question off of YouTube from a live viewer.
We see a massive divergencecurrently in the gold to silver
ratio.
Ah, the gold to silver ratio.
I love that ratio.
Everyone references that.
Has this permanently decoupled,or will this ratio, or will we
see this ratio coming closer inthe future?
So first of all, let's talkabout why that matters
historically.
Speaker 2 (07:45):
Well, that's a great question.
Great question really, becausethis is a one dollar gold coin.
You see how tiny it is.
It's a 20th of an ounce of goldit was equal to.
This is not an old, uh, silverdollar, but it's like a silver
dollar.
So it was a 20th to one ratiogold to silver $1, $1.
(08:07):
And historically that ratio Ithink the person that wrote in
said it's somewhere around ahundred to one, I think
somewhere in that vicinity rightnow Well, historically, what'll
happen is that ratio betweengold and silver will get more
(08:28):
and more narrow, maybe goingback to that 20 to one ratio.
But frankly, I don't really carethat much about the ratio
because I've done enough studiesduring hyperinflationary events
, which I think is in our nearfuture, and what you see is that
(08:51):
we will probably see that gapgrow more narrow.
But once we hit hyperinflation,gold is the primary currency
metal and that's the one thatflies.
So what silver does is itmaintains your ability to
purchase the same goods andservices.
Over time, gold expands thatability.
So, yeah, that ratio do.
(09:11):
I think it's permanently brokenPretty much because this is a
currency life cycle event.
It's not during the life cycleof the currency that we're in,
that's when the ratios can getmore narrow.
But this is a currency lifecycle event, so I don't
anticipate them getting muchmore narrow, certainly not going
(09:33):
back to the 20 to one ratio andI say that with a sigh because
you know I just did this theother day so I'll be fairly
accurate in it.
When you take a standard foodbasket from the Bureau of Labor
Statistics going back to 1913,1971, and then I just did it
(10:01):
maybe a week ago from 1913 to2025, roughly about 2,600%,
somewhere in that vicinity Spotgold even manipulated spot gold
is up over 3,000%, so itmaintains your ability to
purchase the same goods andservices.
(10:23):
But spot gold is up over13,000%, so it expands your
ability to purchase the samegoods and services.
So I know that was kind of along answer for that, but yeah.
Speaker 1 (10:41):
What about other like ratios I mean?
I also hear things like gold tooil or gold to gold.
I mean any historicalsignificance to that, or silver,
for the one that everyone likesto focus on the most.
Speaker 2 (10:52):
Well, no, they focus on gold to real estate.
They'll focus on gold too, butbut this is just in the last
hundred plus years, notthousands of years, not
thousands of years.
And that's what I'm reallygoing back to, because there
have been 4,800 currencies overtime actually most of them since
we went off the gold standardthat do not exist anymore
(11:17):
because governments can't stopdoing this, central banks can't
stop doing that, and so theyhyperinflate away all purchasing
power value in the currencies.
So the ratios depends on.
What's going on would determinethe level of importance.
And for me, knowing without adoubt, I started talking about
(11:42):
the system dying and a need fora reset back in 2008.
That's when it really died.
And I was watching because itwas Shearson Shearson's, my alma
mater.
That's where I learned aboutcurrency life cycles, so I was
paying very close attention.
And when that went out, whatdid they do?
They just printed, printedright QE to the moon and
(12:06):
inflated those stocks, bonds, orreflated, I should say, all of
those targeted assets, realestate and stocks particularly.
They came out and said it we'regoing to reflate them.
So now all of that inflationneeds to run out of them.
And what position does that putyou in?
Can they inflate it?
(12:28):
I mean, what happens when weget to zero?
Have you looked at the FederalReserve's purchasing power chart
?
I prefer not to cry.
Well, for me it's all abouteducated choices, right?
And the Federal Reserve, thatis the keeper of this stuff and
(12:49):
their job is really to regulatethe rate and speed of inflation.
If you go on the FederalReserve Education Department,
also known as the FRED, and youput in the search bar purchasing
power of the consumer dollar,put in the search bar purchasing
power of the consumer dollar,you'll see on the left-hand axis
where it started out as adollar.
(13:10):
And what do you see at thebottom of that axis?
A big fat goose egg.
And officially we have threecents left in purchasing power.
And what holds it together isconsumer confidence and
inflation expectations.
And so it's a consumerconfidence and inflation
expectations, and so it's a congame.
Quite honestly, this is backedby what?
(13:32):
The full faith and credit ofthe government.
Have you ever bothered totranslate those words?
As long as you trust them, youhave faith.
You will continue to loan themmoney, give them credit, but the
(13:52):
world is turning away andlosing faith in the dollar and
not wanting to buy ourtreasuries, which is how the Fed
does this.
So that's going to put a damperon things.
And what do we do when we getto zero?
We're three cents away.
What do we do when we get tozero?
It's just the confidence that'sholding the system together.
When that goes, we're inhyperinflation.
Speaker 1 (14:15):
And, of course, the key part of the word confidence
is con, as we know, but I thinkyou're just finding any excuse
you can to just shoot that,which I appreciate that that's
the case.
Speaker 2 (14:24):
Holly, it's great exercise picking this stuff up.
Speaker 1 (14:27):
I'm wearing, not a product placement.
I'm wearing a tailored athleteshirt because I am now big on
the physical fitness and that'sone way to work the biceps, I
guess Okay.
And that's one way to work thebiceps, I guess Okay.
So we touched on that.
Gold obviously has had asizable run.
I've been quite bullish, upuntil recently at least, on
short-term movement October 2023, got very bullish on it.
I kept on saying gold issending a warning.
(14:49):
Gold tends to be something thatbenefits from geopolitical risk
.
Every time you see some kind ofwar strike or something like
that, you see gold prices spike.
There's the long-term argumentfor the investment holders and
there's the short-term taxableside.
At what point do you say, atleast in the short term, gold
prices could be vulnerable?
(15:10):
I happen to think that, akin tothe sort of magazine cover
indicator, when you havesomething that's on Forbes or
Barron's or any otherpublication, you're probably
close to a top.
That happened, I think, a weekor two ago.
What are your thoughts on thatside of things?
Speaker 2 (15:24):
Well, I think that there's a couple of different
ways to look at it.
So, yes, with a very rapid runup, technically it would be in
spot, gold would be overbought.
So if you're trading well, youwould use all of the technical
indicators that you would forany other stock or anything else
.
So it's not a surprise thatthere's profit taking in a
(15:46):
pullback in here, because therun-up was quite rapid.
But then there's a couple morethings.
Number one there's the physicalonly market.
So let me explain that, right,this is my one, well, and I'm
wearing my bullion travelbracelet, but this is the only
(16:06):
bullion that I personally own.
This will flow with the spotmarket up or down and then,
depending upon demand, thepremiums to get your hands on
the physical are going to growor shrink, right, but this
happens to be a pre-1933collectible coin.
(16:27):
This is a physical only market.
So when you look at what'shappening in these markets, what
I think is extraordinarilyinteresting is when you look at
ultra's happening in thesemarkets.
What I think is extraordinarilyinteresting is when you look at
ultra rarities.
So these are super rare pre 33coins that were might go for
(16:49):
like 15 million bucks, somethinglike that.
Right, that typically willbreak out and has broken out
when there is a breakout, beforeanything else, because it's
smart money.
How many people can afford 15million dollars for one ounce of
gold?
Then the next area, which isthe area that that we work in in
(17:13):
Zhang Enterprises and we dobullion as well.
That's not a problem.
We sell all of this.
But the next area is more.
They're still rare, they'reslabbed and all of that, but
that will typically break outnext, because these are the two
ultra-rarities where the generalcollectible market are physical
(17:36):
only markets.
So you're talking about thespot market, but there are other
markets that help you reallyunderstand where we are again in
this trend cycle.
The last one that typicallybreaks out or does movement is
in the spot market, but it's thepeople in the know that are
(17:57):
showing you the way to go andthat's making all time highs,
not pulling back at this time.
Speaker 1 (18:03):
Is it fair to say that you are a gold bug?
I feel like we should definethat term, because that's a term
that I equate it to being aBitcoin maxi, and I'm not a huge
fan of the idea of anybodybeing super convinced in
anything, because nobody knowswhat tomorrow brings in general.
But I mean, how should we thinkabout sort of the extent of
conviction?
Speaker 2 (18:21):
My level of conviction is huge.
I don't think of myself as abug.
I could call maybe you a stocksnake, right?
I mean, it's a derogatory termthat is absolutely designed to
turn people away from gold,which is the only asset that can
protect them, because what itdoes is it fights inflation.
(18:42):
You cannot inflate this away.
But how committed am I?
Well, I can tell you this.
I started in these markets whenI was 10 years old and I've
learned an awful lot as astockbroker and as a banker, and
I got to go back to my currencylife cycles.
This currency is shifting.
(19:03):
There is virtually nopurchasing power left in the
currency.
We need to go into a new systemand I know you've heard about
the reset.
I started talking about that in2009 after I watched a
Bloomberg interview withChristine Lagarde and in that
20-minute interview which theyhave subsequently deleted and I
(19:26):
didn't know enough to save it,unfortunately, other than the
link she used the term resetabout 29 times how we had to
reset the financial system andthis system and that system.
And I have a tendency tobelieve my technical data and
believe the people that areactually in the know.
(19:48):
And what have we been seeing?
We've been seeing globalcentral banks buy more gold than
they ever have since historybegan.
Why would they do this if it'sjust an old relic right?
That doesn't really make sense.
It's not what central banks areabout.
They're not really abouttradition.
They're about remaining, Idon't know, maybe a little
(20:11):
independent, not everywhere.
Maybe we have that in ourfuture, that the Fed loses the
independence here.
But anybody that wants to stayindependent needs to have sound
money that is beyond anygovernment's or central banker's
control and cannot be inflatedaway.
And the reason why it can't beinflated away.
(20:34):
And OK, I'm going to throw thisone back at you and think about
this right Gold, physical gold,physical silver is used in every
single sector of the globaleconomy.
Therefore, it has the broadestbase of functionality and the
broadest base of demand.
(20:56):
That's why it's abovegovernments and central bankers,
because of that demand and thatuse.
So yeah, I'm all in.
I haven't always been all in.
I don't anticipate being all inin the future, but there isn't
even one little doubt in my mind.
Look at the purchasing powerchart right.
(21:17):
Look at the monetary velocitychart.
There are a whole bunch ofdifferent.
Look at the confidence.
What's happening with theconfidence?
This is a con game.
When that confidence goes away,it goes away, so I can always
convert this into any otherthing that I want anywhere in
the world.
Um yeah, I'm at safety.
(21:38):
I'm at absolute safety.
Right now, I do not trust thesemarkets.
Speaker 1 (21:44):
Sorry, probably not what you want to do sorry about
I and, by the way, I I certainlyhope I'm not a stock snake,
because I'm apparently.
Some people think I'm a perverton stocks.
Not at all.
Speaker 2 (21:54):
Uh, I just think there's cycles, everything gold
obviously, now is the cycleright well, the gold is a cycle
because of where we are in thetrend, I mean, and I would go.
It really is just that simple.
But here I'm going to throwsomething else out at you After
when I saw it happen in 2008,.
I became a prepper.
I was not much of a gardener ora farmer, but here's my mantra
(22:17):
I was not much of a gardener ora farmer, but here's my mantra
Food, water, energy security,barter ability, wealth
preservation, community andshelter, because these are all
the things that we need to livea reasonable standard of living.
And when we transition from onecurrency and what happens is
(22:38):
when one currency dies, anotherone pops up.
So I'm not saying we're goinginto this nothing, because what
you need, then, is a bridge toget you from one system into the
next system with yourpurchasing power intact, so that
(22:59):
you've got something to workwith on the other side of this
mess.
And if you have all of thoseother things and community is
arguably become actually, Iwould call myself a community
bug more than anything else,because we're running out of
time for this.
So I'm sorry to tell you butyeah, I am all in.
I don't own any fiat moneyproducts other than cash, and
(23:26):
that's only because that's ourtool of barter.
If it wasn't, I wouldn't evenhave any cash right now.
Speaker 1 (23:33):
I thought that was monopoly money, and I'm right.
Apparently that is monopolymoney.
Speaker 2 (23:37):
And actually I think I have some Monopoly money in
here, because what's thedifference?
Speaker 1 (23:42):
I think a lot of people can certainly relate to
that.
I see a lot of.
I see Wowie giving the whole100, 100, 100 message on that on
X, appreciate Wowie watchingthis.
It's funny referencing peopleby their username for handles.
Okay, so clearly a cycle forgold.
Uh, gold is acting as a sponge.
(24:03):
You can argue for scared money,but I do think again, there's
some short-term speculativemomentum, um, yours.
How should one think about forthose that are not all in right
and and are trying to figure outhow to position Right?
How do you think about riskmanagement?
Because the reality is, iffinancial advisors are watching
this and saying, I'm with you ongold, I share the same
(24:24):
sentiment.
There's a fiduciaryresponsibility aspect to
portfolio management.
So, not financial advice, butwhat do you typically see in
terms of how people pair itagainst stocks, bonds or houses?
Speaker 2 (24:33):
Well, as part of the strategy, it is a true
diversifier right, and we canlook at what the fundamental
value of an ounce of gold isreally worth.
So, even though you're lookingat the stock market and you see
it rising and you go, wow, lookat that, gold is at all time
highs, or, okay, it's had alittle pullback or whatever.
(24:54):
But what would you think if Itold you the true fundamental
value of an ounce of gold isover $40,000?
So, at $3,300, $10,000, $20,000undervalued right Now, that
might sound absolutelyoutrageous.
So how do I come up with thatnumber?
(25:14):
Because, quite frankly, I thinkit's critically important that
everybody understands the truefundamental value of any
instrument or any asset.
That's the only way you canpossibly know.
Is something undervalued, fairlyvalued or overvalued?
Therefore, do I want to buy it,do I want to hold it?
(25:36):
Do I want to liquidate it?
And so you have to go back tothis is sound money.
This is government debt basedfiat money.
So how do I know how much thisis really worth issue?
(25:59):
So you can do it country tocountry, but I do it globally
and I look at all of the debtthat has been created in the
world because, oops, wrong oneCause that's how this is created
is through debt.
Speaker 1 (26:07):
I can't stop giggling .
I'm sorry, I just you'rekilling me here.
Speaker 2 (26:11):
There's a reason why.
Hey, I could also pull out mymagic eight ball if you ask me a
question that I can't answerand I'll let that answer for me.
So you got to have some fun.
What I talk about is reallysuch ugly stuff, but I am
definitely not a doom andgloomer.
What I am is, during thesetransitions, wealth never
(26:32):
disappears, it just shiftslocation.
So I try and help people getinto the position to have the
wealth shift your way.
But going back the way that youknow the true value of an ounce
of gold.
If they were to do thatovernight reset on a one-to-one
basis tonight, right is you takeall the debt that's been
(26:53):
created, because that tells youhow much new money has been
created in this system, and youdivide it by all the gold that
exists in the whole world,because gold, all gold, it's
indestructible.
So we can account for about 98%of all of the gold that has
ever been mined, plus, on anannual basis.
(27:15):
The department of the interiordoes a study and they publish a
report to tell you how much goldis yet in the ground.
And I take how much has beenmined, how much is yet in the
ground, and I divide all thedebt by that number and that
gives me somewhere north of$40,000.
(27:35):
Somewhere north of $40,000.
And, as outrageous as thatmight sound, what's the face
value of this one ounce goldcoin?
$20.
And if you had said to thisperson you know, one of these
days you're going to see gold at$3,400 an ounce, they would
have looked at you like you hadthree heads.
(27:56):
They would have looked at youlike you had three heads.
So I can tell you that gold isseverely undervalued.
Why?
That's the next question.
Well, why?
Why isn't the market justlapping this up?
And it's simple A rising goldprice is an indication of a
failing fiat currency.
(28:21):
That's why and governments don'twant you to know that their
money, your money this is thereal trend is the purchasing
power.
They don't want you to knowthat it's failing, so they have
to suppress it by creating awhole bunch of gold that does
not, nor ever will exist.
And in fact, back in the day sothis was 2009 before the
(28:43):
central banks really got intothe derivative bets there was a
little bit in foreign exchange,but not too much at that point
and probably the data that theywere publishing was a little bit
more honest, but I saw itmyself and did the calculations,
so I know this is true.
According to the Bank forInternational Settlements, in
(29:04):
2009, for every one ounce ofphysical gold that exists, there
were over 62,000 digital ouncesof gold.
So the market reads it as ifthat gold exists, when it does
not.
And I would like to point outsomething else.
(29:25):
In this country, in the US, weprimarily work in contracts, not
the physical metal.
But what have we seen recently?
Somebody taking delivery onthose contracts.
That's somebody in the knowthat is taking delivery of the
physical metal.
And how did they get thatphysical metal?
(29:46):
Because we don't deal that muchin physical metals in this
country.
Oh, the Bank of England nicelysent over the gold that it's
holding for other countries tothe US, and then that gold got
delivered out.
You tell me what you thinkmight just happen when because I
(30:12):
don't think this is an if whenthose countries ask for their
gold back, where is the Bank ofEngland going to get all the
gold that it shipped to the US?
Speaker 1 (30:22):
Well, since you carry so much gold, I think they're
going to call you up.
I think it's the way that thishas to play out.
Hold on Before we wrap up,because we're a little bit out
of time.
I do want to get anotherquestion here from Spanky.
Is the actual username?
I have to say that seriouslyFrom Spanky, I'd like to know
her thoughts on gold miners.
So let's talk a little bitabout the company side as
(30:43):
opposed to the commodity side.
Speaker 2 (30:45):
Right, it's really interesting.
Gold mining, I think, is a veryhard field and you would think
that you're buying gold, butyou're not.
You're buying a company.
So mining stocks do not performas well and I can tell you,
because I was certainly there in2008 and even have a comparison
chart, this isn't the time.
(31:08):
This isn't the time to be inintangibles.
I'm sorry I probably shouldn'tcompletely say that, but if
you're going to, you wanna beproperly diversified and have
some physical metals outside ofthe system to make sure that
you're properly balanced, andyou can do it against that
$40,000 number.
So if you have, say, 400,000 inthe stock market, make sure
(31:33):
that you have 10 ounces or theequivalent of gold.
Now you've got somediversification.
Understand that as thegovernment prints more money,
which is coming up because we'refighting deflation.
So that's going to happen.
Only one way to fight deflation, that's with inflation.
Only one way to fight inflation, that's with deflation.
(31:55):
And you know what we havecoming up.
I think we'll make this run upto thirty five hundred on.
I mean, it's chump change, it'snothing.
But there is a strategy that Iwould say to employ for those
that want to stay in the marketsor even go into
cryptocurrencies.
Whatever you want to do, youhave to do what you're
(32:16):
comfortable with.
Just make sure that you'reproperly diversified and one
intangible diversifying anotherintangible is not
diversification, right.
It's got to be a tangible assetthat diversifies and protects
what you're holding intangibly.
So it should be used as adiversifier With real estate
(32:38):
there are ways to pay off thatdebt and uses the same strategy
that the government uses torepay debt with dollars that
have virtually well less andless and ultimately no value.
There's a way to make sure thatyou can maintain your property
taxes, because those are acouple threats to people in
(32:59):
terms of real estate.
So it depends on what you own,what your equity is, and then we
look at each piece and whatyour debt is, and we look at
each piece and we build thisstrategy in layers which, by the
way, actually includes somelevel of cash, depending upon
what you're trying to accomplishand what your circumstances are
(33:22):
.
So I just think it is theultimate diversifier and puts
you in a position to maintainthe wealth that you've already
accumulated and expand yourwealth base, because we know
that what goes up must come downand what goes down will go up
if there's real intrinsic valuein it.
So this real estate, thesemarkets that are overvalued,
(33:45):
that's going to flip flop and ifyou're holding your purchasing
power, you get to take advantageof them.
And that's why I said you know,at the moment, yeah, I'm all in
, but that hasn't always beentrue and it's not.
I don't expect it to be true inthe future either, but right
now, because of where we are,yeah, I'm all in.
Speaker 1 (34:05):
Lynette, for those who want to track more of your
thoughts, more of your work or,in general, want to get involved
with what you're involved in.
Where would you point them to?
Speaker 2 (34:17):
Well, you know, I'm very, very active on YouTube and
Twitter at the Lynette Zhangand Instagram and Facebook at
Lynette Zhang and I love ourphone number, which is
833-GLD-ZANG, so we love humancontact Kind of old-fashioned
(34:41):
that way.
Speaker 1 (34:41):
I am jealous that you have that number.
I don't think I can possiblycompete against that, no matter
how creative I can get, so watchthis again, folks.
This will be an edited podcaston Delete Live.
I'll see you all on the nextepisode, and I may now end up
buying that money gun thatlynette's got.
Uh, thank you, lynette,appreciate it pleasure.
(35:01):
Thank you.
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