Economists and gold experts recommend that you have gold in your investment portfolio. But most people don’t. And why would a beginner or any level of investor bother buying physical assets like gold? It’s hard to find a good answer to this question. That’s when you bring in the experts, like Lynette Zang, James Rickards & Robert Kiyosaki. They are all financial contrarians who all believe that you need gold.
Learn from the smartest people, level up and make your own decision on if you need gold. There are reasons beyond gold being a portfolio diversifier and a potential hedge against inflation. Feel free to jump ahead.
This page is the Moneyman “Gold Experts” page for beginners. Any interesting information about gold from gold experts will be compiled here. Perfect for any beginner to access and all in one handy page. Essentially, it’s a cheat sheet to help any beginner learn about gold from the experts.
Lynette Zang – Gold Expert & Market Analyst
Lynette Zang is a Gold Bug. She is the chief market analyst at ITM Trading where she uncovers the truth about complex banking, currencies, and Economic systems. She is an expert on gold and she is all over the Internet, praising the precious metal. Her insights on Gold are amazing and offer actionable insights for all investors. Let’s see what this gold expert has to say on Gold.
Here are a few highlights.
- Lynette believes the current value of gold is $13,500 (the current price is $1,950 USD) per ounce.
- When property prices go down, gold goes up
- When a “reset” occurs, gold can be used in your strategy to pay off your mortgage.
- Central Banks are stockpiling gold to levels never seen since 1950
- And why you need gold as an insurance policy for the future.
The True Value of Gold
Lynnette believes that fiat money (paper money) has an invisible tax that you don’t fight. This tax doesn’t go through legislation and corporations don’t pay you less. But that tax erodes the value of your fiat money. Meanwhile, gold is “indestructible” and holds its value. But how much is Gold really worth?
The Current True Value of Gold
The higher the level of debt, the higher the value of your gold. Lynnette believes the current true value of gold is $13,500 USD per ounce. And that gold can be used to pay for large debts when it hits this level. But how does she get to this number…
“So you just divide how much debt there is by how much gold there is. And that gets you somewhere around $13,500 And the more debt they grow, the higher that number goes.”
Gold Keeps Cash Outside the Banking System
Lynette doesn’t have much faith in banks, and believes gold is the perfect way to keep “Cash outside the system”. This will depend on your personal level of confidence with the banks. For example, they could do an overnight reset like in countries such as Venezuela. That is why Lynette recommends:
“You need some level of cash as well outside of the system, not in the banks, but outside of the system.”
Why Keep Gold as “Cash” Outside the System?
Lynette is very blunt about why gold is needed as a store of value outside the banking system. She doesn’t gloss over its fundamental value of $13,500 and why you need it.
“The debt money that we have that we’re inflating away, that’s fiat money. Gold is good money. Gold is the primary currency metal. Silver is the secondary currency metal.”
Gold and Real Estate Risks
Gold is known as a hedge against inflation, but there are ways to utilize gold when it comes to real estate. Lynette has an interesting take on the price of gold when real estate prices drop. And then what you can do to take advantage of the situation.
When Real Estate Goes Down – Gold Goes Up
Lynette is very aware of the unnatural run-up of property prices. And that what comes up must come down and vice versa. So as an influx of properties appears on the market, gold will likely find its real value.
“There will be a lot of properties that come on the market. And it does a flip flop so right now you got undervalued gold, overvalued real estate, and then that’s going to flip flop.”
Gold Can Reduce Real Estate Investing Risks
There are many risks when investing in real estate. Lynette believes that gold provides the best protection from any real estate risks. And she has completed many studies on Gold and its ability to cover any real estate investment risks. These risks can range from paying a mortgage, rising interest rates or dealing with rent moratoriums. Lynette suggests a scary scenario:
“They will put caps on what you can charge. But there won’t be any caps on your property taxes, your insurance, or your maintenance. There will be no caps on those, but caps on what you can charge.”
Lynette believes Gold is a Diversifier. The Government money is based on debt, and debt is sky-high. And Gold is good money and you need gold to ensure you can always pay your property taxes. And other potential financial trouble you may get into if you can’t handle your mortgage.
Gold Can Be Used to Pay Your Mortgage Off
Lynette believes it’s critically important to have gold in your portfolio to be properly diversified. You don’t want to only hold dollars as “the value of your dollars is being destroyed”. As mentioned earlier, if property values go down, the value of gold goes up. And this is where a huge opportunity awaits if you get into financial trouble.
Lynn speculates what could happen if gold hits more than $13,500 USD an ounce when a potential “reset” occurs.
“How many mortgages could you pay off? What might take you 10 ounces of gold to pay off now, it might take you a quarter of an ounce or 20th of an ounce when that reset occurs. And that’s part of the strategy. “
She also paints an interesting picture for mortgage holders, if things do go that way.
“You want to have the ability to boom, pay that mortgage off in a moment’s notice if you need to do so.”
Reason to Hold Gold: Central Banks are Buying Gold
When it comes to why you need gold, Lynnette is very clear with her reasons. Fighting inflation that hasn’t been this high in over 20 years isn’t the only reason. Neither is the idea of the 401k pension plan being reduced to zero when “the dollar goes away”. You need to watch what the central banks are doing.
Central Banks Are Buying Record Amounts of Gold
The Central Banks added 1,136 tonnes of gold worth $70 billion to their stockpiles in 2022. This is the highest demand for gold since 1950. Lynette says we need to watch what the Central Banks are doing.
“Come on. We’ve been taught to not think about this, right? Oh, why do you want gold? But if you look at what the central bankers are doing, they’re buying gold hand over fist. Yeah, they know they’re destroying the currency. “
Gold is being bought in record amounts and the price hasn’t moved. Why is that? Emerging economies were the main buyers. But what do the central banks know that we don’t? This takes us to Lynnette’s next point.
We Are Transitioning into a New Financial System
Lynnette believes that the US (and likely most other countries) are transitioning into a new system. Similar to when the US came off the gold standard in the early 70s. But “this is bigger than it was in the 70s”. Lynnette calls it the “Fourth Industrial Revolution”.
“This is a fourth Industrial revolution and we’re definitely going in to digitize. The only thing that I’ve been able to find so far to justify the creation of Central Bank digital currencies is debt. And what that means is they have to burn off this massive amount of debt that they’ve accumulated. So then they can do it all over again.”
In the above scenario, gold and silver will protect your wealth. Let’s take a look at exactly why you need both.
Reason to Hold Gold and Silver – and Why You Need Both
Lynette may be a gold bug, but she owns both gold and silver. She believes that when the currency is reset, gold and silver will have different jobs. But both are essential to carry wealth outside of the banking system. Lynette lays out how gold and silver should be used in such an event.
Silver is Best for Smaller Purchases
Silver is perfect for day-to-day barter ability. For example, if you need to put gas in your car or you need to buy water or gas. Silver is ideal for any small purchases.
Gold Carries a Lot of Wealth in a Tiny Package
And it’s completely out of the system.
Gold Will Be Used to Reset the Currency – Not Silver
Lynette sees the utility of gold and silver, but Gold is her most valuable asset.
“Hard to buy a property with a whole bunch of silver. I mean, how many trucks do you have? Right, I can do it much easier, with a small amount of gold. And keep in mind too, it is gold against which they reset the currency, not silver. “
Gold Surpasses the Price of Silver in a Hyperinflation Scenario
Lynette believes that the silver price is manipulated and is “a joke”. And in a hyperinflation event, silver could go up percentage-wise more than gold. As I previously discovered in my analysis of the Great Silver Bull, follow that link for my analysis and review.
And Lynette references the Weimer Republic in Germany in 1923. This is where a catastrophic hyperinflation event saw gold go from one to one trillion paper marks per gold mark.
“So what we saw was that the difference between gold and silver prices (In Weimer, Germany) did get narrower for a minute. At the end of the day when the hyperinflation really kicked in, Gold far surpassed the gains of silver.”
Why You Need Physical Gold
Lynette is famous for saying “if you don’t hold it, you don’t own it”. Holding a physical asset like gold or silver may be a foreign idea for many investors. But there are advantages over digital holdings of gold and silver.
Gold and Silver ETFs Are Not Very Accessible
In a worst-case scenario, digital gold and silver may not be very helpful. The asset must be physical and accessible, as Lynnette describes below.
“If you don’t hold it, you don’t own it because a gold ETF or silver ETF, all you own are shares in a trust. You have absolutely no access to the underlying physical item. So it’s just a share and it’s designed to mimic the spot market, which is a manipulated market anyway. You can see a premium in the physical market because that’s a true supply and demand market. The Wall Street Market is not.”
Physical assets need to be physical. Virtual versions of gold and silver will not help you. And you need to hold gold close to home.
You Need to Hold Gold Close to Home
It’s important to have your gold and silver close enough so that it can be accessed when needed. If you store it at home, you may have false floors and dead space utilized to store it. Lynn won’t store her gold in the bank or offshore, for the following reason.
“I personally hold it in a private vault. I don’t really like bank vaults because they can declare bank-holiday. Now there are some people that hold it in offshore storage. But in a crisis, which is what you’re buying this for, I don’t know that you’d be able to get it. “
Gold Is an Insurance Policy for the Future
Gold has always been seen as a hedge against inflation. Lynette sees gold as more important for the future. And it has a more powerful utility than a simple hedge. Lynette has called out the following reasons why gold is so important.
- You want to be in a position to take advantage of the “wealth transfer” with gold.
- Gold will help sustain your standard of living (when that transfer takes place).
- You want to leave a legacy or create dynastic wealth for your family using precious metals.
All interesting ideas from Lynette Zhang, a gold expert, and her investment case for gold.
Final Thoughts
I am a huge fan of Lynette Zang. I will continue to update this page with wisdom from Lynette and other financial contrarians I enjoy learning from. Feel free to drop a comment and let me know what you think. Have I made the case for buying gold?
M. Moneyman
Reference List:
- Lynette Zang on how small amounts of gold and silver can make you a millionaire – Video
