A “tectonic shift” is coming as the US moves from one interest rate benchmark to another.
That’s according to Lynette Zang, chief market analyst at ITM Trading. She told the Investing News Network that as of June 30, 2023, the US will use the SOFR rate instead of the LIBOR rate, which means contracts across the board will be revalued.
“This level of change has never been attempted before,” she said. “I hope I’m wrong, but I don’t think they can do it — and Wall Street doesn’t think they can do it, which is why they didn’t adopt (SOFR) easily.”
This transition isn’t the only big change that’s currently in the cards. Zang also spoke about de-dollarization, saying there are many signs that the US dollar is set to lose its status as the world’s dominant reserve currency.
“The reason why I believe you are seeing central banks accumulate massive amounts of gold is so that they retain their power through the shift,” she said, adding, “That’s exactly the same reason I buy gold.”
When it comes to physical gold, she favors collectible pre-1933 coins, but said what’s most important is to have a foundation of real money that’s outside the system. “Regardless of your perception, if you don’t hold it, you don’t own it,” Zang said.
Beyond gold, which preserves wealth, and silver, which is barterable, Zang recommended focusing on food, water, energy, security, community and shelter. “These are the things that we need to make sure are secure and surrounding us,” she said.
Watch the interview above for more from Zang on her outlook for 2023. You can also click here for the Investing News Network’s full Vancouver Resource Investment Conference playlist on YouTube.
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Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.
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