Gold and silver will again become a medium of financial transactions in America. Utah, a state in the USA will be the first state to allow state vendors to be paid in gold and silver.
The bill that allows the state of Utah to pay its vendors in gold and silver has been passed in the 2025 legislative session. The Utah Legislature has authorized the state treasurer to issue a competitive procurement for a precious metals-backed electronic payment platform, allowing state vendors to opt for payment in physical gold and silver.
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Sponsored by Rep. Ken Ivory and carried in the Senate by Sen. Keith Grover, the bill passed with strong bipartisan support in both the House and Senate and now awaits the governor’s signature. This landmark move positions Utah as the first state in the nation to pass a transactional gold bill.
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The legislation is an outcome of the Utah Precious Metals Study Workgroup, which authorized Utah Treasurer Marlo Oaks to invest a portion of Utah’s rainy day funds in precious metals and review how precious metals can enhance Utah’s economic security and prosperity.
The new rule gives state vendors the option to be paid in precious metals while ensuring the physical assets backing the system are stored in Utah and subject to regular audits.
Utah offers gold and silver payment options to vendors and service providers in uncertain economic times, allowing Utahns to preserve their purchasing power.
Technological advancements now enable fractional gold transactions. A precious metals-backed electronic payment platform could facilitate real-time transactions, seamless dollar-to-gold conversions, and secure gold storage in Utah under strict safety standards.
Former Federal Reserve Vice Chair Randal Quarles and former CFO of both Citigroup and American Express, Gary Crittenden, are among the workgroup members who expressed support for the legislation.
Gold served as money in the United States for over a century and a half. However, in 1974, the IRS, through policy, not law, classified gold as a collectible, subjecting it to the highest capital gains tax rate. This tax makes transacting in gold less attractive since each transaction in gold or silver is deemed a taxable event.
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