Louisiana Considers Gold and Silver as Currency: A Growing Trend Across States
The state of Louisiana is currently evaluating a potential shift in its financial landscape that could see gold and silver recognized as legal tender. Proposed legislation is under consideration by the Louisiana Legislature that would allow citizens to use these precious metals in everyday transactions. This move aligns Louisiana with a growing number of states exploring alternative currency options beyond the traditional dollar.
Currently, eleven states already recognize gold and silver coins as legal tender. This reflects a broader movement across the country questioning the stability and long-term value of fiat currencies and seeking alternatives that offer perceived security and intrinsic worth. While Louisiana has previously attempted to embrace precious metals as currency, the current legislative effort aims to solidify their role within the state’s economic system.
One of the pioneering states in this movement was Utah, which enacted the Legal Tender Act in 2011. This law formally recognizes U.S.-mint gold and silver coins as legal tender, meaning they can be used to settle debts and obligations within the state. Utah’s decision served as a catalyst for other states to explore similar legislation, demonstrating a growing interest in diversifying currency options.
Louisiana itself has a history of considering gold and silver as legal tender. A law was passed in 2013 that acknowledged the status of gold and silver coins as legal tender. However, the impact and implementation of this law have been limited. The new proposed legislation aims to build upon this foundation and create a more comprehensive framework for the use of precious metals in financial transactions.
Texas, a state known for its independent spirit, also considered legislation in 2017 to establish gold and silver as legal tender. The proposed law included safeguards against seizure by state authorities, reflecting a concern for protecting individuals’ rights to own and use precious metals without government interference. Although the legislation did not pass, it signifies the continued interest in alternative currency options within the state.
Kansas joined the conversation in 2013 when the Committee on Taxation passed a bill declaring U.S.-minted coins as both legal tender and tax-exempt. This move aimed to incentivize the use of gold and silver by eliminating the tax burden associated with their purchase and sale. By recognizing their legal tender status, the bill sought to integrate precious metals into the state’s economy.
Oklahoma followed suit in 2014 with Senate Bill 862, which recognized gold and silver U.S.-minted coins as legal tender and exempted them from taxation. Similar to the Kansas bill, this legislation aimed to promote the adoption of precious metals as a viable form of currency within the state. By removing the tax burden, Oklahoma sought to make gold and silver more attractive to both consumers and businesses.
South Carolina also entered the arena in 2013 when the House of Representatives passed a bill declaring gold and silver legal tender. This decision reflected the growing sentiment among lawmakers that precious metals should be recognized as a legitimate form of currency. Although the bill did not ultimately become law, it demonstrated the interest in exploring alternative currency options within the state.
Wyoming took a different approach in 2018 by enacting a law that eliminated the taxation of gold and silver bullion. This effectively treated these precious metals as tender free from sales tax. By removing the tax burden, Wyoming aimed to encourage the ownership and use of gold and silver as a store of value and a medium of exchange.
The motivations behind these legislative efforts vary from state to state. Some proponents argue that gold and silver offer a hedge against inflation and economic uncertainty, providing a more stable store of value than fiat currencies. Others believe that recognizing precious metals as legal tender can promote economic freedom and reduce reliance on the federal government’s monetary policy. Still others view it as a way to attract investment and create a more diversified economy.
However, the widespread adoption of gold and silver as currency faces several challenges. One major obstacle is the fluctuating value of these precious metals, which can make it difficult to use them for everyday transactions. The value of gold and silver is subject to market forces and can change significantly over time, creating uncertainty for both buyers and sellers.
Another challenge is the lack of infrastructure for handling gold and silver transactions. Most businesses are not equipped to accept these precious metals as payment, and there are limited options for converting them into other forms of currency. This can make it inconvenient for consumers to use gold and silver for everyday purchases.
Despite these challenges, the movement to recognize gold and silver as legal tender continues to gain momentum across the United States. The proposed legislation in Louisiana is just the latest example of this trend. As more states explore alternative currency options, the debate over the role of precious metals in the economy is likely to intensify. Whether Louisiana’s efforts will succeed remains to be seen, but the fact that the issue is being considered reflects a growing dissatisfaction with the current monetary system and a desire for greater financial stability and independence. The outcome in Louisiana could potentially influence other states to reconsider their own stance on gold and silver as legitimate forms of currency.
