For example, Lynette Zang, at ITM Trading, has suggested in recent videos, that the gold to silver ratio will increase significantly during the upcoming currency reset. She believes this based on the idea that gold is more the primary monetary metal and has published data showing the surging gold-silver ratio that took place during the end of the Weimar Germany hyperinflation.
Yes, it is true that the gold-silver ratio shot up to 160/1 during the last month of the Weimar hyperinflation, but there was a specific reason why that I will explain shortly. However, the main disagreement that I have with most precious metals analysts on the future value of gold and silver is based on their failure to incorporate “Energy” into their research, work, and forecasts.
While Lynette Zang educates her followers on why it is important to own gold and silver, she does not understand the dire energy predicament we are facing. Thus, she is missing the most critical factor in her analysis. Even the diehard precious metals bull, Peter Schiff, does not understand the negative consequences of the Falling EROI (Energy Returned On Investment) and the thermodynamics of oil depletion. Schiff believes that if the debt was wiped clean and the banks were liquidated, then we could start a new economic boom based on sound money.
However, the collapse of debt and the banking system would destroy our modern economy… for good. There is no way we could survive a cleansing of the debt-based monetary system. Without the debt, most assets have no value.
In Zang’s recent interview CLARIFICATION: Silver/Gold Ratio (Function Vs Fiat), she posted this table of the changing gold-silver ratio during the Weimar Germany hyperinflation:
From 1919 to most of 1923, the gold-silver ratio remained between 14-16/1 as the Reichsmark was printed into oblivion. We can see just how much the value of gold and silver, in Reichsmarks, increased. However, on October 23rd, 1923, the gold-silver ratio shot up to 160/1 and remained there for an entire month. So, why did this occur?
- Source, SRS Rocco, Read the Full Article Here