In a historic move that signals a shift toward sound money policies, Utah has become the first state in the United States to pass legislation allowing state vendors to be paid in gold and silver. The bill, which successfully passed in the 2025 legislative session, enables the Utah state treasurer to establish a precious metals-backed electronic payment system, allowing vendors to opt for payment in physical gold and silver.

A Landmark Move for Precious Metals in Transactions

Sponsored by Rep. Ken Ivory and carried in the Senate by Sen. Keith Grover, the bill received strong bipartisan support in both chambers of the Utah Legislature. With its passage, the legislation now awaits the governor’s signature before becoming law. This bold initiative reintroduces gold and silver as viable mediums for financial transactions at the state level, reflecting a broader trend of individuals and institutions diversifying their wealth with precious metals.

The legislation stems from the recommendations of the Utah Precious Metals Study Workgroup, which was tasked with exploring how precious metals could enhance Utah’s economic security and financial resilience. As part of its findings, Utah Treasurer Marlo Oaks was given the authority to invest a portion of the state’s rainy-day funds into precious metals, reinforcing Utah’s commitment to monetary stability. This mirrors a nationwide shift, as more investors recognize gold and silver as essential hedges against inflation and economic uncertainty.

Preserving Purchasing Power in Uncertain Times

This new law grants state vendors the ability to receive payments in precious metals while ensuring that the underlying assets are securely stored in Utah and subject to routine audits. At a time when inflationary concerns and economic uncertainty loom large, Utah’s decision provides an alternative store of value that preserves purchasing power. More Americans are following suit by adding physical gold and silver to their portfolios, recognizing their long-term stability compared to fiat currency.

The introduction of a precious metals-backed electronic payment platform represents a technological advancement that enables fractional gold transactions. Such a system could facilitate seamless dollar-to-gold conversions, real-time transactions, and secure storage within Utah under strict safety standards. As digital payment platforms backed by gold gain traction, more individuals are exploring the benefits of diversifying their assets into precious metals.

Historical and Constitutional Precedence for Gold Transactions

The reintroduction of gold and silver into financial transactions aligns with the foundational principles of sound money. Gold functioned as money in the United States for over 150 years before changes in tax policy diminished its role. In 1974, the IRS classified gold as a collectible, subjecting it to the highest capital gains tax rate and discouraging its use in everyday transactions. However, many investors today are recognizing the long-term advantages of gold holdings, seeking to protect their wealth from economic fluctuations.

The U.S. Constitution explicitly grants states the authority to recognize gold and silver as legal tender under Article 1, Section 10. Utah has been a leader in advancing gold and silver-backed economic policies, having first passed legislation recognizing precious metals as legal tender in 2011. The latest bill reinforces this stance by expanding its practical application to government transactions—just as private citizens are increasingly turning to gold to safeguard their financial future.

Support from Economic Experts

Former Federal Reserve Vice Chair Randal Quarles and former CFO of both Citigroup and American Express, Gary Crittenden, have both expressed support for the legislation. They emphasize the importance of giving citizens and businesses more choices in how they store and transact wealth, particularly in light of ongoing concerns about the stability of fiat currencies. Their support reflects a growing consensus among financial experts that gold remains a crucial component of a well-diversified portfolio.

A Model for Other States? A Trend Toward Gold Ownership?

With Utah paving the way for state-level gold and silver transactions, other states may soon follow suit. As economic conditions continue to evolve, many policymakers are reconsidering the role of precious metals in financial systems. At the same time, individual investors are increasingly adding gold and silver to their holdings to diversify their wealth and mitigate financial risks.

In recent years, gold ownership has surged among both institutional and retail investors. Central banks around the world continue to increase their gold reserves, and more Americans are recognizing the value of holding tangible assets that can preserve wealth through turbulent economic cycles. The demand for gold-backed payment platforms and digital gold transactions is also on the rise, signaling that interest in alternative financial strategies is growing.

By adopting a gold-backed electronic payment platform, Utah is setting a precedent for integrating historical monetary principles with modern financial technology. As more individuals and institutions embrace gold as a means of preserving and growing wealth, Utah’s initiative could be a harbinger of broader financial shifts to come.