Sound Money Movement Achieves Seven Legislative Wins Across States in 2024

In 2024, the United States has experienced significant successes in sound money legislation, with Money Metals Exchange playing a pivotal role in seven legislative victories. These achievements comprise a defensive win and six new initiatives aimed at promoting the use of precious metals as constitutional money, reflecting a grassroots enthusiasm for sound money principles. Notable changes include tax exemptions that enhance the viability of gold and silver as genuine alternatives to fiat currency. Together with five legislative successes from 2023, the growing trend reflects the practicality and achievability of sound money policies, being propelled by dedicated advocacy and public support.

The most prominent victories include two states, New Jersey and Wisconsin, eliminating sales taxes on gold and silver purchases, which traditionally acted as a barrier to citizens opting for these forms of currency. With the signing of Assembly Bill 29 by Governor Tony Evers in Wisconsin, the state joined a majority of others that do not tax precious metals sales. The move was framed by advocates as essential for restoring the historical and constitutional role of gold and silver as money and freeing citizens from the constraints of the federal government’s monetary policies. Meanwhile, New Jersey’s Senate Bill 721 passed unanimously, highlighting a broad political support for these changes. However, New Jersey’s new law has a limitation that excludes purchases of coins under $1,000, creating a “poor tax” for less affluent investors seeking to acquire precious metals.

The fight for sound money is not without challenges, as evidenced by the situation in Kentucky. While bipartisan support existed for eliminating the sales tax on gold and silver, Governor Andy Beshear remained staunchly opposed and directed state agencies to continue collecting the tax, arguing that anyone who owns gold should be able to afford the tax burden. This ongoing constitutional standoff illustrates the challenges that sound money advocates face in some states, leaving Kentucky among the handful of states that still impose a sales tax on precious metals.

Beyond sales tax exemptions, progress has been made in regard to income tax on gains from gold and silver sales. Alabama marked a significant victory by eliminating income taxes on such gains through the enactment of Senate Bill 297, reinforcing the state’s commitment to sound money principles. The move was closely followed by Nebraska, which passed Legislative Bill 1317, further redefining the treatment of precious metals and explicitly excluding central bank digital currency from the state’s money definitions. Continued efforts nationally include the re-introduction of the Monetary Metals Tax Neutrality Act in Congress, which aims to eliminate federal capital gains tax on precious metals, underscoring the growing recognition of gold and silver as legitimate currencies.

In addition to tax exemptions, several states are taking steps towards institutional investment in gold. Utah’s House Bill 348 empowers the state treasurer to invest budget reserve funds in precious metals, showcasing a growing acknowledgment of gold’s role in stabilizing state finances. Contrastingly, Idaho’s governor vetoed a similar measure, demonstrating the varying attitudes toward sound money across states. Louisiana also made strides by reaffirming gold and silver as legal tender, which, though largely symbolic for now, helps reinforce the notion of these metals as actual money in public consciousness.

Importantly, all these advancements occurred without states rolling back previous progress, despite there being ongoing efforts by some legislators to undermine existing tax exemptions. The proactive response from the grassroots community has played a vital role in protecting these reforms, as seen in Nebraska, where public outcry successfully halted a proposed detrimental tax measure. This grassroots activism highlights a broader movement toward recognizing gold and silver not only as investments but also as foundational components of monetary stability and personal freedom.

Overall, the 2024 legislative season reflects a substantial momentum in favor of sound money provisions, with advocates pushing for further reforms to address challenges stemming from inflation and devalued fiat currencies. As policymakers recognize the importance of gold and silver in safeguarding economic stability and maintaining purchasing power, the path toward achieving further sound money reforms appears clearer, heralding a future where citizens can rely on these historic forms of currency. However, the perspective remains that continued vigilance and advocacy are essential, as numerous challenges lie ahead in securing sound money’s rightful role in the economy.