An Evaluation of US States’ Sound Money Policies in 2025

The 2025 Sound Money Index, a joint project of the Sound Money Defense League and Money Metals Exchange, provides a state-by-state assessment of policies related to precious metals, highlighting the ongoing movement towards recognizing gold and silver as viable forms of money and savings. The Index evaluates states based on a range of criteria, including tax policies on precious metals, legal tender status recognition, protection of gold clauses in contracts, establishment of state precious metals depositories, investments in gold bonds, inclusion of precious metals in state reserves, mechanisms for accepting tax payments in gold and silver, and regulations impacting precious metals dealers and investors. This comprehensive approach aims to identify both the leaders and laggards in fostering a sound money environment.

Wyoming, South Dakota, and Alaska emerged as the top three states in the 2025 Index, reflecting their commitment to sound money principles. These states have implemented favorable policies that either minimize or eliminate taxes on precious metals, recognize their role as money, and facilitate their use in transactions. Conversely, Vermont, Maine, and California occupied the bottom three spots, indicating a less receptive stance towards sound money policies. These states often impose taxes on precious metals transactions and have not enacted legislation promoting their use as alternative forms of currency or savings.

The 2025 Index highlights significant progress made in several states through the enactment of pro-sound money legislation, particularly in the area of tax reform. Nebraska and Alabama made substantial gains in their rankings by eliminating capital gains taxes on precious metals, following earlier moves to exempt sales taxes. Louisiana also improved its standing by reaffirming gold and silver as legal tender. These legislative successes underscore the growing momentum of the sound money movement at the state level. They demonstrate increasing recognition among policymakers of the benefits of reducing tax burdens on precious metals, thereby enabling individuals and businesses to diversify their savings and hedge against inflation.

The repeal of sales taxes on precious metals also contributed to significant improvements in the rankings of Wisconsin and New Jersey. While their complete elimination of such taxes represented a major step forward, the nuances of these exemptions reveal the complexities of sound money legislation. Wisconsin’s exemption excluded platinum and palladium, while New Jersey’s legislation did not apply to “investment coins” valued at $1,000 or more. These limitations exemplify the challenges in crafting comprehensive sound money policies and achieving uniformity across states.

The contrasting approaches to sales tax exemptions in Wisconsin and New Jersey underscore the importance of detailed analysis when evaluating sound money legislation. While both states deserve credit for eliminating sales taxes on certain precious metals transactions, the limitations in their respective laws prevent them from achieving a perfect score on the Sound Money Index. Wisconsin’s exclusion of platinum and palladium, while encompassing the most commonly traded precious metals, overlooks the potential benefits of diversifying into other valuable resources. Similarly, New Jersey’s exemption threshold for investment coins raises concerns about accessibility for smaller investors, potentially limiting the positive impact of the legislation.

The ongoing momentum of the sound money movement is evident in the increasing number of states considering capital gains exemptions on precious metals. This trend suggests that sound money principles are gaining traction among policymakers and that further reforms are likely in the coming years. As inflationary pressures persist and concerns about the stability of the traditional financial system grow, the appeal of precious metals as a hedge against economic uncertainty is expected to strengthen. The Sound Money Index serves as a valuable tool for tracking these developments and holding states accountable for policies that impact Americans’ access to sound money alternatives.
The Sound Money Index’s emphasis on state-level reforms reflects a strategic approach to advancing sound money principles. By focusing on state legislatures, proponents of sound money can achieve incremental progress and build momentum for broader national change. Moreover, state-level successes can serve as models for other states and create a competitive environment where jurisdictions vie to attract precious metals businesses and investors. The variations in state tax and regulatory policies offer a valuable opportunity to compare different approaches and identify best practices. This process of experimentation and innovation can ultimately lead to more effective and well-crafted sound money policies at the national level.

Jp Cortez, Executive Director of the Sound Money Defense League, emphasizes the importance of the Sound Money Index in tracking the progress of the sound money movement and holding states accountable. As the purchasing power of the Federal Reserve note continues to decline, Americans are increasingly seeking alternative ways to preserve their savings and protect their wealth. The Sound Money Index highlights the states that are embracing sound money principles and creating a more favorable environment for precious metals ownership. It also calls attention to the states that continue to impose burdensome taxes and regulations, hindering individuals and businesses from accessing these important financial tools.

Stefan Gleason, CEO of Money Metals, underscores the growing popularity of sound money reforms at the state level. He notes that such proposals have garnered significant support in recent legislative sessions, demonstrating the increasing public awareness and demand for sound money policies. The fact that 45 states have now partially or fully exempted sales taxes on precious metals is a testament to the success of these efforts. This widespread adoption of sales tax exemptions reflects a growing recognition of the importance of removing barriers to precious metals ownership, as the elimination removes the double taxation that arises when both the original purchase and the eventual sale of precious metals are taxed.

Looking ahead, the sound money movement faces both opportunities and challenges. Continued education and advocacy are essential to further advance sound money principles and encourage the adoption of more comprehensive reforms. However, it is worth noting that the momentum is on the side of sound money advocates. As the economic landscape continues to evolve and the limitations of the current monetary system become more apparent, the demand for sound money alternatives is likely to intensify. This trend bodes well for the future of the sound money movement and suggests that further progress is on the horizon. The Sound Money Index will continue to play a crucial role in tracking and promoting these developments, helping to guide the nation toward a more stable and prosperous financial future.