“If you wish to support sound money and see the Federal Reserve reined in, a bottom-up approach is the most effective path forward,” said Thomas Jefferson.
Since 2011, residents in Utah have been diligently working towards this goal, inch by inch, through a series of state laws aimed at advancing gold and silver as money. Their efforts have laid the groundwork for what is perhaps the most well-established foundation for sound money in the United States.
The Utah Legal Tender Act, passed in 2011, marked the beginning of this journey. It made gold and silver coins issued by the federal government legal tender in the state and eliminated state sales and capital gains taxes on these precious metals.
Building on this success, the state legislature expanded the act in 2012 to include any gold and silver coins approved by the state, opening up opportunities for entrepreneurs to establish new avenues for using gold and silver as money.
One of the most notable developments to arise from these legislative changes is the establishment of the United Precious Metal Association (UPMA) and Alpine Gold Exchange, which together formed the state’s first “gold bank.” This innovative approach allows individuals to conduct business using legal tender precious metals and has seen significant growth in membership and assets under management.
Additionally, the creation of the Goldback, a local medium of exchange made from physical gold, has further solidified Utah’s position as a hub for sound money. The Goldback has gained widespread acceptance among small business owners and has even expanded to other states.
In 2024, Utah took another critical step in supporting sound money by authorizing the state to hold gold and silver reserves, providing a hedge against the depreciation of Federal Reserve notes and potential economic instability.
By implementing a step-by-step approach focused on incremental progress, Utah has emerged as a leader in advancing gold and silver as money. This approach, rooted in the wisdom of the Founders, demonstrates the effectiveness of perseverance and strategic planning in achieving long-term goals.
As the state continues to pave the way for sound money, residents and businesses alike are encouraged to embrace real money in everyday transactions, further cementing Utah’s position as a champion for financial independence and economic stability.
In the words of Samuel Adams, “the necessity of the times calls for our utmost circumspection, deliberation, fortitude, and perseverance” in the pursuit of sound money and financial freedom.
Utah’s strategy involves passing legislation that recognizes gold and silver as legal tender and providing tax exemptions for these precious metals. This move is aimed at promoting financial freedom and protecting against the devaluation of fiat currencies. Utah’s approach serves as an example for other states looking to protect their citizens’ wealth and promote a more stable financial system.