How Gold Is Being Used by Struggling Countries

November 27, 2019
by Mike Hammer

gold investing bars
Written by Mike Hammer

Some call gold archaic and outmoded, however, the world’s central banking system sees it otherwise. The world’s central banks use gold in roles ranging from a guarantee to a “fractional”, to full payment of a debt. Fractionals are when a bank demands just a “fraction” of the total amount now and the rest later, the transaction commencing when the fraction is delivered – similar to how a home mortgage works in the US.

Yet many of these transactions are not discussed publicly, even when they involve rather huge amounts. Today’s featured article is a primer on how gold is actually used in the world markets, with several well-publicized examples when gold quite literally saved the day.

Yes, some other asset could have been used, but the fact that the IMF and other world banks “go for the gold” when things get difficult tells just how important it is. Read all about it in today’s featured article.

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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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