This represents a small step toward reestablishing gold and silver as legal tender and breaking down the Fed’s monopoly on money. By eliminating this tax on the exchange of gold and silver, states treat specie as money instead of a commodity. But that’s essentially what a sales tax on gold and silver bullion does.

Silly, right? After all, you were only exchanging one form of money for another. Imagine if you asked a grocery clerk to break a $5 bill and he charged you a 35-cent tax. In effect, states that collect taxes on purchases of precious metals act as if gold and silver aren’t money at all. Passage of these bills would take a small step toward undermining the Federal Reserve’s monopoly on money by eliminating one hurdle to using gold and silver in everyday transactions. But taxes on precious metal bullion erect barriers to using gold and silver as money by raising transaction costs. Companies like GoldMoney facilitate this. Repealing these taxes knocks down one barrier that might keep some investors from considering physical metal for their portfolios.Īlso, with the advent of electronic payment services, it’s easier than ever to use precious metals in everyday transactions. Sales taxes on gold and silver raise investment costs. It also knocks down barriers for people who want to use gold and silver in transactions.Ĭurrently, 42 states have eliminated sales taxes on gold and silver bullion. Repealing taxes on gold and silver is an important step toward sound money. The bill defines “precious metal bullion” as coins, bars, rounds, or sheets that contain at least 35 percent gold, silver, copper, platinum, or palladium. The legislation would create a sales and use tax exemption for precious metal bullion. By effectively repealing the sales tax, the bill would relieve some of the tax burden on investors, and take a step toward treating precious metal bullion as money instead of a commodity.Ī coalition of 23 Republicans introduced Senate Bill 33 ( SB33) on Feb. Buying Gold & Silver with CryptocurrencyĪ bill introduced in the Wisconsin Senate would create a state sales tax exemption on the sale of gold and silver bullion.Buy Gold the Ultimate Monetary Insurance Policy.

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