A question from last week’s live session has been on many minds: is gold overvalued? With prices climbing, the concern is understandable. But here’s the truth. Gold is not too high. It is severely undervalued. And so is silver. Understanding why means digging into the difference between intrinsic value and fundamental value, a concept Lynette Zang explains with urgency and clarity.
Intrinsic vs. Fundamental Value: Understanding the Difference
Intrinsic value is the estimated worth of an asset based on complex financial models and objective calculations. A popular tool is the 200-day moving average, which many use to gauge whether an asset like gold or the dollar is overvalued or undervalued.
But these models can be manipulated. Lynette calls this "perception management." If Wall Street or central banks control what you believe, then you are more likely to act in their favor while thinking it was your decision.
Fundamental value, on the other hand, comes from an asset’s core function. For money, that function is preserving purchasing power. That is where physical gold and silver shine. They retain value over time, unlike fiat currencies that deteriorate in worth.
The Truth About the U.S. Dollar
The Federal Reserve’s own purchasing power chart tells the story. Since 1913, the dollar has lost almost all of its value. This didn’t happen by accident. It was by design. Fiat currencies have no intrinsic value, and their fundamental value is effectively zero.
Lynette illustrates this with a powerful example. A one-million Venezuelan bolivar note has more value as a napkin than as money. This is where all fiat currencies are headed, including the U.S. dollar.
Labor as a Measure of Gold's Real Value
Instead of measuring gold in fiat terms, Lynette suggests measuring it in labor.
- In 1913, the average wage was $800 and gold was $20.67 per ounce. That equals 38.7 ounces of gold per year.
- Today, the average wage is $61,984, which equals less than 20 ounces of gold per year.
Despite massive gains in productivity, workers have lost nearly half their purchasing power in gold terms. If wages had been paid in gold since 1971, today’s earnings would be nearly $800,000. In silver, they would exceed $200,000.
Fiat money distorts reality. Gold reveals it.
Calculating Gold's True Value
So when will gold’s spot price reflect its true value? According to Lynette, that moment will come when the current monetary system collapses. And history shows that collapse is not a matter of if but when.
Here's a simple way to calculate gold's true value:
- Global debt (as of Q1 2025): $324 trillion
- Known gold supply: 8.97 billion ounces
- Resulting value per ounce: $38,127
At today’s prices, gold remains a bargain. Whether it is $3,300 or $10,000, it is still far below its true value.
Buy, Hold, or Sell? A Simple Rule
Use this straightforward guideline:
- If gold is undervalued, buy it
- If gold is fairly valued, hold it
- If gold is overvalued, consider liquidating
Right now, gold and silver are deeply undervalued. That means it is the time to accumulate.
Gold and Silver: Your Bridge to the Next System
When fiat systems collapse, gold acts as a bridge to the new monetary system. This has been proven repeatedly in countries like Venezuela and Zimbabwe. During overnight resets, gold reasserts its role as a protector of purchasing power.
Lynette puts it simply. Physical gold and silver are:
- Simple
- Clean
- Free of counterparty risk
- In your direct control
In the 1980s, central banks suppressed gold prices while transitioning into a debt-based system. Today, they are accumulating gold as we move toward a digital financial system. The signs are clear. The question is, have you prepared?
Final Thoughts: The Time to Act Is Now
You now understand the critical difference between intrinsic value and fundamental value. This knowledge empowers you to make decisions that protect your wealth.
If you do not already have a sound money strategy in place, now is the time. At Zang Enterprises, we build strategies based on your goals, your circumstances, and the tools available to you.
Do not wait for the system to collapse. Become your own central bank. Convert your fiat currency into sound money.
If you are ready to protect your purchasing power with physical gold and silver, contact Zang Enterprises today. Schedule a strategy session and get a custom plan in place. Our specialists are ready to help you understand what kind and how much gold and silver you need to secure your financial freedom.
