Will the Value of Gold Keep on Slipping?

decrease stock chart
Written by Mike Hammer

As we wait this morning to see if gold keeps slipping, I’ll note that Tennessee is the latest state to join the growing “sound money” ranks.  In a nutshell, sound money is a concept where whatever is used for money should have constant value, and not be open to the direct machinations of politicians. All government-issued money these days is fiat currency, the opposite of sound money in the opinions of many.  Even though they don’t like to say it, economists define fiat currency as “money backed by faith,” whereas sound money is money backed by something with real value.

So you can get a mix, a proportion of floating currency might be backed, for example. In the past, the US Dollar was redeemable for gold, which made those respective dollars sound money.  When the US came off the gold standard, the Dollar became a true fiat currency. Way back in 2017, your Gold Enthusiast commented on Arizona’s efforts toward sound money.

Today’s featured article about the latest Tennessee proposal gives lots of background thinking on the topic, and while we may not agree with some of the aggressive tones, we do agree with the principles they promote.

Let us know what you think about sound money in the Comments below!

About the author

Mike Hammer

Mike Hammer has had a wide-ranging career, with trading and investing as continuing themes. Mike graduated with a business degree and spent years as a financial advisor, before moving to New York and to pursue a career in IT and education. For more than a decade Mike has been working with the Adam Mesh Trading Group as a stock market and commodities mentor. He’s trained over 200 individuals, spoken at several national conventions, and is a frequent contributor to educational webinars.

Mike writes The Gold Enthusiast daily newsletter, runs the Golden Hammer trading service, and participates in the Mesh Private Portfolio. He also keeps a position in international education which keeps him in touch with "the student mindset".

Mike focuses on the precious metals markets, the energy industry, and the financial sector. His motto is "Plan your trade, then trade your plan!"

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1 Comment

  • Hi Mike, thanks for all you do information wise. Can you be a little more specific please for
    this old dummie. Do you think it is going up, down, sideways and your long term ideas for
    miners….thanks