A tectonic shift is brewing, exit the system now

A “tectonic shift” is looming as the US moves from one benchmark interest rate to another.

That’s according to Lynette Zang, chief market analyst at ITM Trading. She told Investing News Network that starting June 30, 2023, the US will use SOFR instead of LIBOR, meaning contracts will generally revalue.

“This level of change has never been attempted before,” he 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, so they didn’t adopt (SOFR) easily.”

This transition isn’t the only big change currently on the cards. Zang also spoke about de-dollarization, saying there are many signs that the US dollar is about to lose its status as the world’s dominant reserve currency.

“The reason I think central banks hoard massive amounts of gold is so they retain their power during the turnaround,” he said, adding: “That’s exactly the same reason I buy gold.”

When it comes to physical gold, he prefers collectible coins from before 1933, but said the most important thing is to have a real money base that is outside the system. “Regardless of your perception, if you don’t have it, it doesn’t belong to you,” Zang said.

Beyond gold, which preserves wealth, and silver, which can be traded, Zang recommended focusing on food, water, energy, security, community and housing. “These are the things that we need to make sure are safe and around us,” he said.

Watch the interview above to learn more from Zang about his outlook for 2023. You can also Click here for the full Investing News Network Vancouver Resource Investment Conference playlist on YouTube.

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Securities Disclosure: I, Charlotte McLeod, do not have any direct investment interest in any of the companies mentioned in this article.

Editorial Disclosure: Investing News Network does not guarantee the accuracy or completeness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the views of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.