President Franklin D. Roosevelt removed gold as legal tender in the United States through a series of actions starting in 1933. The Gold Reserve Act of 1934 formally took gold out of circulation and established a new fixed price for gold.
Richard Nixon’s decision to delink the dollar from gold was announced without warning in August 1971.
Currently, gold sales are generally subject to capital gains taxes, meaning you’ll pay taxes on any profit made from selling gold. However, the specific tax rate depends on whether the gold is held as a collectible or as a security. Collectibles, like physical gold bars and coins, are taxed at a maximum rate of 28%, which is higher than the standard long-term capital gains rate. If you own gold through stocks, ETFs, or futures, it’s generally taxed as a security, which falls under the standard long-term capital gains tax brackets.
While the price of gold does not correlate with inflation there’s no question that gold has held its value over time better than the USD which has declined continuously due to inflation.
What if we could use gold as legal tender without it being taxed?
For Those Who Don’t Trust Powell or Trump with Our Money
A movement in the states offers a hard-money alternative.
By James Freeman, The Wall Street Journal, July 22, 2025
… [big snip]…
Imagine you’re in the supermarket checkout line. The cashier scans and bags your groceries as usual, then offers you a new way to pay: “Cash, card … or gold?”
The scenario may sound far-fetched. But people in Missouri, Texas and other states will be able to buy household items with gold and silver under a series of new laws that treat precious metals like currency.
Supporters of the measures — among dozens of gold- and silver-related bills considered by states this year — don’t envision people pulling out gold coins and bullion bars at the cash register and don’t require that retailers accept gold as payment. The bipartisan laws are instead designed to make it easier and cheaper for people to spend their gold investments — including by allowing officials to set up electronic payment platforms and by challenging the federal capital gains tax on precious metals.
Missouri enacted a legal tender law last week. Texas, Florida and Arkansas approved similar measures in June, May and April, respectively.... [end quote]
I think this is a long shot. The IRS is on the federal level and they aren’t going to change their taxes in a few states.
I would like to see a return of hard money. Not exclusively but as an option that isn’t penalized by onerous taxes. I’m old enough to remember silver dimes and quarters and the days before inflation took off. I’m old enough to remember the nickel Hershey bar and fifteen cents for a slice of pizza or a soft Carvel ice cream cone.
Wendy