Some red state lawmakers are proposing legislation that would make it easier to use gold and silver as currency and to establish state gold stockpiles, citing inflation concerns as a key driver for the policy shift.
Legislative Push Across Multiple States
Georgia’s draft bill, which failed to pass but has backers planning to retry, would authorize “mechanisms” allowing citizens to pay for goods in gold and silver, potentially using prepaid debit cards like those offered by Glint, a U.K.-based company supporting the laws. The Georgia legislation frames the effort as promoting “economic justice,” stating that “recognizing gold and silver as legal tender” allows “citizens of every economic status access to the ability to preserve their wealth by hedging against inflation with precious metals.”
Similar “transactional gold laws” have been proposed in Arizona, Oklahoma, and Iowa with varying degrees of success. Utah passed such a law earlier in 2024 and also enacted a separate bill allowing the state to invest up to 10% of its “rainy day fund” in gold.
Rationale: Inflation Hedge and Wealth Preservation
Lawmakers emphasize that the commodities offer protection against rising inflation, noting that the value of gold and silver has increased while the dollar has not. According to Utah state treasurer Marlo Oaks, the legislation is “essentially just giving people another way of being paid,” with officials stressing that no one is forced to use gold or gold-backed products instead of dollars. Most lawmakers do not anticipate a return to the gold standard.
Gold Market Dynamics
Gold is currently trading around $4,800 a troy ounce—down from earlier in the year but up $1,000 compared to 2025. The recent price surge reflects multiple factors: the creation of gold exchange-traded funds (ETFs) has made the asset easier to buy and hold, everyday investors have increased purchases, and central banks have boosted their gold acquisitions.
Expert Skepticism on Viability
Economists and monetary policy experts widely question gold’s suitability as a currency, citing price volatility as a fundamental obstacle. Jacob Goldstein, author of “Money: The True Story of a Made-Up Thing,” states that “gold is not money” and “hasn’t been money for many decades,” adding that “it didn’t work very well as money when it was money.” However, Goldstein notes that gold’s appeal may stem from the perception that it exists outside government control: “It takes the power of money away from the government to, you know, in some fundamental way, I think that is part of the appeal.”
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
TradFi Fall Alert: XAGUSD (Silver) Falls Over 2%
Gate News: According to the latest Gate TradFi data, XAGUSD (Silver) has dropped by 2% in a short period. Current volatility is significantly higher than recent averages, indicating increased market activity.
GateNews36m ago
The extension of the Iran-Iraq ceasefire affects inflation expectations, and gold prices rebound after falling for two straight days
While the Iran-Iraq ceasefire has been extended, the deadlock in the Strait of Hormuz remains unresolved. Energy risks have pushed Brent crude oil prices above $100, lifting inflation expectations. Spot gold steadied after a streak of declines, trading at about $4,733; ETF flows have been moving in for three straight weeks, indicating demand for safe-haven assets alongside fundamental support. With lower leveraged trading volume and capital concentration, institutions are dynamically adjusting their gold allocations. If it approaches $4,850, profit-taking sell pressure could emerge, and the market may see short-term fluctuations.
ChainNewsAbmedia2h ago
Gold and Silver Slip Slightly, Oil Rises; Bitcoin and Ethereum Volatility Indices Decline
Gate News message, April 23 — Gold prices fell to $4,731.95 per ounce with a daily decline of 0.18%, while silver dropped to $77.585 per ounce, down 0.13% intraday. Bitcoin volatility index (BVIX) stood at 43.64, declining 1.80%, and Ethereum volatility index (EVIX) reached 63.90, down 5.19%.
In
GateNews2h ago
Singapore Jeweler Mustafa Gold Launches MG999 Yield-Bearing Gold Token with FundBridge and Libeara
Gate News message, April 23 — Singapore-based jeweler Mustafa Gold has partnered with asset management firm FundBridge Capital and tokenization platform Libeara to launch MG999, a yield-bearing digital token that tracks gold prices. The token provides investors with gold exposure while generating re
GateNews3h ago
U.S. Stock Index Futures and Precious Metals Decline, WTI Crude Oil Plunges 11%
Gate News message, April 23 — U.S. stock index futures (contracts based on major U.S. equity benchmarks) and spot precious metals fell sharply, while international crude oil prices dropped significantly.
WTI crude oil (West Texas Intermediate, the U.S. benchmark for oil pricing) plunged 11% in a si
GateNews3h ago
Kalshi Partners with Pyth to Launch Commodities Hub for Gold, Oil, and Lithium Markets
Kalshi taps Pyth as data provider for Commodities Hub, launching binary-event markets on oil, lithium, soybeans, with dozens of live contracts; emphasizes 24/7 price discovery beyond traditional exchanges.
Abstract: Kalshi has named Pyth, a crypto oracle, as the data provider for its newly launched Commodities Hub, enabling event-based contracts on major commodities. Dozens of markets cover price moves in Brent, lithium, soybeans, and more, with binary bets on rising or falling prices. The platform argues that 24/7 price discovery is increasingly essential as geopolitical events unfold outside traditional exchange hours.
GateNews4h ago
