The asset that built America: How federal employees are using physical gold to protect their retirement

This past weekend, surrounded by fireworks and family, we celebrated an amazing milestone for the United States of America: the 250th anniversary of the signing of The Declaration of Independence.

Since 1776, America has fought world wars, created technological revolutions, and led massive economic shifts that have positioned us as the wealthiest, most powerful nation on the planet. And if you look closely at the financial power run that made the US dollar the world’s reserve currency, you’ll find one physical asset that’s been at the foundation of it all…

Gold.

It’s no coincidence that the United States currently holds the world’s largest gold reserves of any nation. We have 8,133 metric tons of gold stored safely in facilities like Fort Knox and West Point. The government has always trusted gold as the ultimate bedrock of wealth, stability, and global financial supremacy.

Now, as the economy enters a turbulent chapter in the summer of 2026, a growing number of Federal employees and retirees are using a little-known provision called The TSP Modernization Act to back their retirement with the same gold that built our nation.

The 250-year test of purchasing power

To understand why physical gold is still so heavily trusted by the US Treasury, you only need to look at the history of purchasing power in gold vs the dollar.

In the early days of America, a $20 gold coin contained roughly one ounce of pure gold. And at that time, that $20 gold coin could purchase a complete high-end, custom-tailored suit.

Fast forward 250 years to today. If you take a $20 bill to the department store, you can barely buy a pair of nice socks. But if you take that same one ounce gold coin and exchange it for dollars today, you still have enough to buy a complete high-end, custom-tailored suit.

And that’s just one example.

Look at the cost of a car. A century ago in the 1920s, a brand new Ford Model T cost about $300. Back then the price of gold was roughly $20/ounce, meaning 15 ounces of gold could buy a new car.

Today, if you took $300 into a dealership it would be a bad joke. But 15 ounces of gold would cash out at roughly $35,000-$40,000, which is a comfortable price to buy a new car.

The math is undeniable. In fact, since the Federal Reserve was created in 1913, the dollar has lost around 96% of its purchasing power. Because as the money supply keeps expanding to fund global expansion and national debt, the value of the dollar keeps declining.

This is the reality of paper currency because it can be printed into oblivion. Gold hasn’t actually “gone up” in value, it’s simply remained a constant store of value as the dollar continues to get debased by an expanding money supply and inflation.

That’s why the US Treasury has held onto its gold reserves for generations. Gold is the oldest and realest form of money, and it’s the best store of value to protect wealth over the long term because it preserves purchasing power against inflation and currency depreciation.

The need for diversification in 2026

For federal employees nearing retirement, and those already retired, preserving the value of your retirement savings is a paramount concern.

Following the outbreak of the conflict between Iran and Israel, and the subsequent disruption to a big portion of the world’s oil supply, energy prices have surged and triggered rebound inflation not seen since 2023. The CPI for May registered at 4.2%.

And while peace talks around Iran and Israel could help cool inflation in the short term, the fact is the bigger problem is America’s debt. With over $39 trillion in debt, and a running annual deficit of $2 trillion, the US can never hope to pay off its debt through normal means.

That’s why the Fed is basically forced to keep printing money. To keep the US from defaulting on its debt that has to get renewed at higher interest rates, the Fed injects new money into the system to service this debt. Consequently, the M2 money supply has just reached new record highs in May, and continues to climb.

As long as the US keeps printing money, inflation will never go away. That’s just basic economics. More money chasing the same amount of goods and services means higher prices.

And while the AI boom is pushing stocks to new highs, it isn’t solving the inflation problem. In fact, if you measure the S&P 500 in physical gold ounces instead of dollars, the stock market has actually been in decline over the last 26 years. Meaning the market isn’t creating as much wealth as it seems, it just takes more diluted dollars to buy the same shares.

This puts TSP holders in a difficult position. If you leave your money in equities (C, S, and I-Funds), then your retirement is riding the “boom and bust” cycle of a world economy that’s facing unprecedented geopolitical conflicts and market volatility.

But if you try to seek safety in bonds (the G-Fund), you face a different problem. With the G-Fund currently yielding around 4.5% and inflation running hot over 4%, your real return is practically zero. Once you factor in taxes, you’re actually losing money to the cost of living.

Fortunately, the TSP gives you a way to protect your money with the same gold the United States holds in their reserves.

The ultimate American asset

Thanks to a little-known provision in the TSP Modernization Act, Federal employees over the age of 59 ½ and those who are already retired, can use a penalty-free, tax-free rollover of a portion of their TSP funds into a Gold IRA.

This means you can take a portion of your TSP funds and move them out of paper assets like stocks and bonds, and into physical assets like American Gold Eagle coins from the United States Mint.

You’re not leaving the security of a government-backed retirement account, you’re reallocating a portion of your long-term wealth from government paper to government metal, which is designed to withstand the erosion of the US dollar.

This is the exact same strategy the US Treasury uses to protect our nation’s wealth. And you’re able to lock in your gains from the C, S, and I-Funds completely tax-free, ensuring that no matter what happens with market volatility in the future, your money is protected.

How to learn more

Moving funds from the TSP to a Gold IRA is a highly structured process, and it must be executed correctly according to your situation to maintain your tax-deferred status. Because standard financial advisors only make money with paper assets in the traditional finance market, you’ve probably never been presented with this option before.

That’s why National Gold Group created a free guide written specifically for federal employees and retirees, called “The TSP-to-Gold Guide.”

Inside this free guide, you’ll discover:

The “TSP-to-Gold” Strategy: The exact 3-step, tax-free rollover process that lets you move a portion of your money without triggering IRS penalties, taxes, or costly mistakes.
The “Purchasing Power” Analysis: A visual breakdown of exactly how gold acts as a financial shield during massive stock market corrections, geopolitical energy shocks, and periods of high inflation.
The “Peace of Mind” Protection Plan: How to use your TSP funds to acquire U.S. Minted physical gold, verify your assets are fully secured in IRS-approved depositories, and avoid predatory ongoing IRA fees.
The “Total Control” Distribution Playbook: How to maximize your financial liquidity, including exactly how to take physical delivery of your American Gold Eagles or liquidate them for cash on your terms.

America’s financial strength has been anchored by physical gold for 250 years. As you prepare for your own long-term retirement, ensure your life savings share that same unshakeable foundation.

>> Download your free guide here.