Gold is back in the spotlight, and this time it’s more than just a safe haven. With the nation’s financial future in question, investors are closely watching how gold could play a pivotal role moving forward. Over the past 12 months, gold’s price has shot up more than 40%, outpacing the S&P 500’s gains in the same period. It’s part of a larger conversation about how we manage our money system, and it’s looking like we might need a change.¹

Sound Money

Dr. Judy Shelton, a Senior Fellow at the Independent Institute and former economic advisor to President Trump, has been one of the strongest voices against our current monetary setup. She’s warning that the national debt and instability of the dollar are serious threats, and is calling for a return to "sound money."

Now, what’s sound money? It’s basically a throwback to the gold standard, when the value of currency was tied to a fixed amount of gold. This setup gave stability, predictability, and a limited supply that helped keep the value of money in check. Shelton thinks that linking the dollar to gold again could help stop inflation from spiraling and curb government overspending.

“The dollar used to be as good as gold,” she says. Shelton’s big idea? Issue long-term Treasury Trust Bonds, where investors can choose to get either the dollar value or a set amount of gold when the bond matures. This would tie the dollar’s value back to gold, helping preserve its purchasing power.²

Driven by Debt

This proposal is getting more attention, especially with our national debt now topping over $36 trillion. And the cost to service that debt is only climbing. Fifty years ago, the national debt was 'only' $400 billion. The Congressional Budget Office projects that from 2024 to 2033, servicing the debt will cost $10.6 trillion—double what was forecast just a few years ago. ³

Shelton thinks the main issue stems from the Federal Reserve’s “no limit” powers. They can buy unlimited government debt. Therefore, they make decisions based on financing government bills rather than improving the economy. She’s concerned that if the Fed continues with this unchecked power, they can stop a new president's economic agenda before it even gets started. Also, the U.S. government could try to inflate away the debt, eroding the dollar’s purchasing power.

The $800 Billion Question - Revalue Gold Reserves?

But it’s not just about what the Fed’s doing with the debt—there’s also the issue of how we value gold. The U.S. holds the largest gold reserves in the world. There are over 8,100 tons sitting in the Federal Reserve and Treasury vaults. But here’s the kicker: These reserves are still valued at $42.22 per ounce, a price set by a 1973 agreement. And gold’s currently trading at over $2,900 an ounce. That’s a huge discrepancy, and if we valued gold at the current market price, it could mean almost an $800 billion windfall for the Treasury.⁴

Professor David Teeters, a former director at Barclays and BNP Paribas, pointed out that an $800 billion boost could reduce the country’s borrowing as a percentage of its assets. Currently, with gold still at the old valuation, the Fed’s debt-to-equity ratio is a massive 179-to-1. But if gold were pegged at $3,000 an ounce? That ratio could drop to around 11-to-1, which is more in line with major financial institutions like Goldman Sachs. While this revaluation would be a one-time boost for the Treasury, it could open the door to significant policy changes, like tax cuts.⁵

Treasury Secretary Scott Bessent has hinted that changes might be coming, saying, “we’re going to put the assets to work” and signaling plans to “monetize the asset side of the U.S. balance sheet.” If the gold reserves were revalued, it could really improve the Fed’s balance sheet. ⁶

Time for An Audit

Some people are even questioning whether our gold is even there. And they're asking Elon Musk to step in and audit America's gold reserves. That including inspecting Fort Knox’s 4,580 tons of gold, which hasn't been audited since 1974, to make sure it's not encumbered by government deals.⁷

Sound Money

The sound money movement has been gaining steam. States are starting to recognize gold and silver as legal tender or removing taxes on precious metals. Utah kicked things off in 2011 by making U.S.-minted gold and silver coins legal tender. Texas followed by passing a law in 2024 that would back a digital currency with gold and silver. Other states, like Louisiana, Oklahoma, and West Virginia, have removed sales taxes on precious metals or recognized them as legal tender. As of 2025, 43 states will have removed sales taxes on gold and silver coins. This growing shift shows that people are seeing precious metals as a way to hedge against inflation and economic instability.⁸

These state-level moves could spark federal changes too. Representative Alex Mooney has introduced the Monetary Metals Tax Neutrality Act, which aims to bring state-level progress to the national stage.

Conclusion

So, where does this all go from here? Whether the U.S. decides to revalue its gold reserves or embrace the sound money movement at the federal level remains to be seen. But one thing’s for sure: The conversation about gold’s role in the economy is only going to get louder. And as that happens, gold’s price will likely keep rising. Now’s the time to take action and secure your financial future. Protect your retirement with a Gold IRA from American Hartford Gold, ensuring your savings are secure in these uncertain times.

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Max Baecker is the President of American Hartford Gold (AHG), the nation’s largest retailer of precious metals. He leads American Hartford Gold’s mission to help clients achieve long-term financial security with physical gold and silver.

Under his guidance, American Hartford Gold has delivered billions of dollars’ worth of precious metals to thousands of satisfied clients.

Max's dedication to upholding American Hartford Gold's industry-leading standards is reflected in its accolades. American Hartford Gold has made numerous high-ranking appearances on the prestigious Inc. 5000 List of America’s Fastest-Growing Private Companies. AHG holds an A+ Rating from the BBB and a 5-Star Rating on Trustpilot from thousands of American Hartford Gold reviews. American Hartford Gold is the only precious metals company trusted and recommended by Bill O’Reilly.

AHG offers investment-grade gold and silver coins and bars at competitive prices. Clients also benefit from its buy-back commitment with no back-end fees. To learn more, visit American Hartford Gold.

Notes:

1. https://fortune.com/2025/02/11/adjusting-bookkeeping-america-gold-reserves-add-750-billion-treasury-overnight/

2. https://www.kitco.com/news/article/2024-10-30/linking-gold-us-dollar-how-americas-debt-and-fiat-dependence-threaten

3. https://www.kitco.com/news/article/2024-10-30/linking-gold-us-dollar-how-americas-debt-and-fiat-dependence-threaten

4. https://www.kitco.com/news/article/2024-10-30/linking-gold-us-dollar-how-americas-debt-and-fiat-dependence-threaten

5. https://www.kitco.com/news/article/2025-02-14/us-sitting-gold-fortune-can-it-actually-fix-debt-problem

6. https://www.bloomberg.com/news/articles/2025-02-13/wall-street-talk-of-revaluing-us-gold-isn-t-persuading-white-house?embedded-checkout=true

7. https://www.nysun.com/article/will-elon-musk-join-the-campaign-by-sound-money-advocates-for-an-audit-of-americas-gold-reserves

8.https://www.akleg.gov/basis/get_documents.asp?session=33&docid=14956#:~:text=Utah%20accepted%20gold%20and%20silver,states%20to%20pursue%20similar%20legislation