Who Benefits from Transactional Gold and Silver?

Why do ordinary families benefit most?

Families are told to save, but the dollars they save buy less every year. The U.S. dollar has lost approximately 90% of its purchasing power since 1971. Gold, over the same period, has maintained its value.

Institutions and the wealthy already hedge against inflation by investing in gold and silver. Transactional Gold and Silver provides the middle class and working poor a mechanism to hedge against inflation while keeping the money easily accessible.

Fractional ownership is what makes this practical. A family does not need thousands of dollars for a one-ounce coin. It can own a few dollars' worth at a time, add to it when it can, and spend it with a debit card when it needs to.

How do workers and young savers benefit?

Paychecks are paid in dollars, and measured in gold, the dollar paycheck has shrunk. In 1960 a minimum-wage worker earned an ounce of gold in 35 hours; at $4,000 gold it takes about 552 hours.

TGS lets a worker set aside part of each paycheck in allocated physical gold or silver and still use it for groceries, gas or rent. For someone building first savings, being able to start small matters more than starting big.

Why does TGS matter for retirees?

Retirees living on fixed incomes and savings feel rising prices most, because their income does not rise with every price increase. TGS gives a retiree a voluntary way to hold part of those savings in gold or silver and still pay everyday bills from it.

Ownership protections matter here. Owners of Allocated Specie hold a legally enforceable ownership interest in specific physical gold or silver held in custody within the United States -- which cannot be lent, pledged, or hypothecated without their express consent.

Because gold can fall sharply in the short term, it works best as one part of a retiree's savings rather than all of it.

What do small businesses and merchants gain?

A merchant that accepts a TGS payment receives ordinary U.S. dollars through the card networks it already uses. It needs no new equipment, does not have to accept gold and takes no gold price risk.

Where a provider offers business accounts, a small business owner can also choose to hold part of the company's cash in gold or silver and pay expenses from it. Participation is entirely voluntary for consumers, businesses, merchants, and financial institutions.

Does the precious-metals industry benefit?

Yes. Providers, depositories, payment companies, mints, refiners and coin dealers can all gain from new customers who first meet gold through a small TGS account. Some of those customers will later buy coins and bars as well.

TGS does not have to take customers from traditional dealers; it can bring more people into the market. The full answer is in “Is Transactional Gold and Silver disruptive to the traditional gold industry and dealers?”

What do states gain?

A state that passes TGS gives its residents another voluntary way to pay without creating a state bank, building a depository or running a payment system. Under the Transactional Gold and Silver Act, any Authorized Provider may offer Constitutional Money Services -- no state depository is required, and no state guarantee is created.

Because the metal must be held within the United States, TGS can also support domestic vault operations, jobs and related services.

Who benefits and how?

Who should be careful?

TGS is not the place for money that must hold a steady dollar value over the next few months. Gold-to-dollar conversion can be volatile, either gaining or losing Dollar value. Rapid loss of dollar value is a risk for all users. For this reason, the classical financial advice is not to have all your eggs in one basket.

Each sale of metal to pay for a purchase can also be a taxable event under current federal law. If you're unsure how TGS fits your situation, talk with a tax professional or financial advisor.

What is the most common misunderstanding?

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