Lynette Zang: Silver Won't Perform As Well As Gold In The Reset And The Gold To Silver Ratio Won't Come Down
Lynette says silver won't perform as well as gold in the reset and the GSR won't be coming down, but is that accurate? Here's some insight...
Lynette Zang was just interviewed on Reluctant Preppers.
She is generally well spoken and gets a whole lot of things right.
Unfortunately, she gets a lot of things wrong too, especially when it comes to silver.
First of all, she's always talking about gold being the "primary" metal and silver being "secondary" to gold (minute 33:50ish in the video).
That is wrong.
Under our bi-metallic gold standard, this was not the case at all.
There was no distinction between "primary" and "secondary".
They were both on equal measures.
It was, and is, "gold and silver", not "gold or silver", and not "Gold and to a lesser extent silver".
Sure, gold was valued higher, but that does not mean "primary".
In fact, one dollar, as in $1.00, the most ubiquitous of all American money and denominations, was defined as a weight and purity of silver, not gold.
Weights and purities of silver were defined in these units of the dollar: $.10, $.25, $.50 and $1.00.
Gold was defined in these dollar units: $2.50 (Quarter Eagle), $5 (Half Eagle), and $10 (Eagle).
The $20 (Double Eagle), which is close to 1 ounce of gold but not quite, came later.
To learn about how our money was defined, and how there is no "primary" or "secondary" metal, read the Coinage Act of April 2, 1792.
Here it is on the Mint.gov website for your convenience.
Furthermore, here's a question: If Lord and Savior Jesus Christ was sold out by Judas for silver, how can silver be called "secondary"?
And it's not a "well, he was just a common thug" argument either.
He was a Disciple of Christ.
But I digress.
Gold and silver are money.
One is not better than the other, and one is not secondary to the other, but rather, they are different.
I often say it like this: Gold is the money of the government (or king if that's your thing), and silver is the money of the people.
You could also think about it like this: I'm not going to shoot a rabbit for the stew pot with a bazooka (gold), but rather, I'm going to use a .22 LR (silver).
See how it works?
Gold & silver are equally important for different reasons.
But they are both "primary", and they are both precious.
See Lynette Zang interviewed on Reluctant Preppers in the entirety below:
Secondly, Lynette argues that silver will not perform as well as gold in a reset, and that the gold to silver ratio won't be coming down. (minute 33:01ish in the video)
Well, if we get back to our required bi-metallic gold & silver standard, then the ratio will come down.
It was 16 :1 under that standard, and while one could argue it won't be at that ratio again, I highly doubt it will stay above 75 either.
Here's why -
It's a reset.
The debt is out of whack, and part of that is the printing of fiat, the parabolic rise in the debt, and this was all aided by the suppression of gold & silver prices, all over the span of multiple decades.
That means gold and silver prices are out of whack too.
Way out of whack.
And if we assume the cartel suppresses silver more than it suppresses gold (which means they actually care about silver more than they do care about gold, which i recently argued here), then the ratio has to come down, meaning silver will perform better than gold because silver is more out of whack than gold.
Which I think silver is.
Also, there is historical precedence that silver outperforms gold to the upside in bull markets, but that's not our point here, so no need to go down that path.
I'm only pointing out that silver, generally speaking, always outperforms gold in major upside moves, regardless of reason (bull market or reset).
But I digress.
Back on track.
I've also said this:
Average price any one of the 3 out of 4 precious metals (gold, palladium, platinum) - $1025Average price for 1 of the 4 precious metals (gold, palladium, platinum, silver) - $775Price of silver today: $16.30Silver is a precious metal, and it's price is nowhere near its value.
Silver is way undervalued.
Extremely undervalued.
The silver price will surge.
Immensely.
Furthermore, Lynette gives the example of the Weimar hyperinflation and says the ratio was out of whack then, and that the ratio never came down.
I'm not sure she's historically accurate here.
Here's the historical gold to silver ratio chart, log scale, from Macrotrends:
And here it is without the log scaling:
Historians mark the Weimar inflation at 1918 to 1924.
Either way, the gold to silver ratio didn't play out like she says it did.
Oddly, she says in the video (minute 33:40ish) that the ratio was 160 to 1.
I have no idea where she got that number from, but here's the thing: Even if the GSR did rise, contained regionally to Weimar Republic, the ratio came down.
Furthermore, Lynette says, "what are you going to do, convert your silver into dollars in the hyperinflation, of course not?" (minute 34:12ish of the video).
In other words, what happens with the gold to silver ratio at that point is then moot because you wait it out anyway.
The point is, no matter if the ratio climbs, or falls, in the hyperinflation, you only convert silver to fiat currency if and when you need to, but most understand to wait until the dust settles and the reset happens, and only after confidence is established in the new currency and gold and silver have risen accordingly, or until a new bi-metallic gold & silver standard as Constitutionally required come into existence, and at that point gold & silver will both be reset much, much higher.
Or direct barter, but again, out of scope for this article.
Either way, with silver especially, it's that whole "don't miss this train, and get your seat early" approach.
One look at the GSR, with the historical precedence of the last 100 years, and anybody can see the ratio is telling you the next meaningful direction is down, not up.
That means silver will outperform gold.
Finally on the Weimar issue, it's like when Harry Dent says gold crashed in 2008 and lost 40% of its value (not sure exactly the percentage he says, but he always cherry picks that data), well, yeah, okay, but what happened after that?
Gold went on a massive bull run, and he just ignores that part.
Overall point here: Gold and silver are going to rise in price, bigly, and silver even more bigly.
Call it "biglier"
Finally, Lynette says that "the reset is performed by revaluing the currency against silver". (minute 31:46ish in the video)
Um, no, that's why governments and central banks have "official gold holdings" and that's why they list gold as their top tier 1, liquid asset.
The currency is revalued against gold, not silver:
Reset: 1934 Gold Reserve Act - dollar devalued against goldReset: Bretton Woods - Dollar pegged to gold at fixed level all nations peg to dollarReset: Nixon Closes the Gold Window - gold demonetized and world reset to petro-dollarMonetary resets are against gold, not silver.
Silver was "demonetized" in 1965, but that wasn't a "reset" per se.
Here's the thing: There are, Constitutionally, two monetary metals, and they are gold & silver.
They are also truly the definition of "separate but equal".
Resets happen against gold, but silver, being money, is reset by default as it performs in its role as money.
Anyway, my post was not a rant against Lynette.
Lynette is fighting for the cause of sound money and encouraging people to stack both gold and silver.
Those are good things.
She's a fighter and somebody we need on our side.
But that's not to say that everything she says is accurate.
And in some of the ways she talks about silver, she is saying things that are simply wrong.
Silver matters.
Way more than most people can even understand.
Let alone fathom.
Stack accordingly...
- Half Dollar
 | About the Author U.S. Army Iraq War Combat Veteran Paul "Half Dollar" Eberhart has an AS in Information Systems and Security from Western Technical College and a BA in Spanish from The University of North Carolina at Chapel Hill. Paul dived into gold & silver in 2009 as a natural progression from the prepper community. He is self-studied in the field of economics, an active amateur trader, and a Silver Bug at heart. Paul's free book Gold & Silver 2.0: Tales from the Crypto can be found in the usual places like Amazon, Apple iBooks & Google Play, or online at PaulEberhart.com. Paul's Twitter is @Paul_Eberhart. |
***