In a recent interview with Kitco News, Jp Cortez, executive director of the Sound Money Defense League, outlined the rapid progress of the sound money movement across the United States. He emphasized that gold and silver serve as a reliable hedge against inflation and fiat currency devaluation, noting that 45 states have now eliminated sales taxes on precious metals, while gold prices have surged nearly 29% year-to-date.
Legislative Victories: 45 States Remove Precious Metals Sales Tax
Cortez underscored the significance of recent legislative wins, particularly the removal of sales taxes on gold and silver purchases. As of now, 45 states have abolished such taxes, marking a major milestone for the sound money movement. New Jersey became the 45th state to do so, though a contentious provision remains: transactions under $1,000 are still subject to taxation.
Calling this provision “regressive,” Cortez argued that it disproportionately harms small investors who engage in dollar-cost averaging. “In many cases, these are people who go to their local precious metals dealer and buy a couple of Eagles or a couple of silver rounds every paycheck,” he said. “This tax actively picks them out and says that no, you cannot buy precious metals without being subject to a penalty by the state.” He called for full repeal of the tax to ensure equal treatment for all investors.
Gold Hits All-Time High, Up 28.87% YTD
At press time, an ounce of .999 fine gold trades at $2,658, having recently peaked at $2,674 on September 27, 2024. Year-to-date, gold has rallied 28.87% against the U.S. dollar. Cortez attributed this price surge to growing global distrust in fiat currencies and central banks’ continued accumulation of gold reserves.
He noted that the sound money movement is part of a broader de-dollarization trend. As global economic instability mounts and the U.S. national debt continues to rise, more states are recognizing the need to safeguard their financial systems by investing in gold and silver. For instance, Utah has already taken a pioneering step by holding physical gold in its state coffers. Cortez believes other states will follow suit, further reshaping the U.S. financial landscape.
De-dollarization: From State Level to Global Shift
Cortez explained that the movement goes beyond precious metals enthusiasts; it represents a fundamental rethinking of the current monetary system. “When governments choose physical gold over fiat as a reserve asset, it signals a deep-seated loss of confidence in the dollar,” he said. Central banks worldwide are already reducing their dollar holdings while boosting gold reserves, a trend that Cortez expects to accelerate.
He envisions a scenario where more U.S. states emulate Utah by including physical gold in their state treasuries. This could pressure the federal government to reconsider monetary policy and perhaps even revisit the gold standard or similar anchoring mechanisms. Although such a shift remains a long-term goal, every legislative victory brings the concept of sound money closer to the mainstream.
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