Florida to Recognise Gold and Silver as Legal Tender

The state of Florida is responding to inflation, fiscal strain, and the growing politicisation of the financial system with a pioneering law that will formally recognise gold and silver as legal tender. It is a move that matters far more than most investors currently appreciate.

Under the new law, Florida will recognise gold coins of at least 99.9% purity and silver coins of at least 99.5% purity as legal tender. It removes sales and use taxes entirely and establishes a clear transactional and custodial framework. Acceptance of bullion will remain voluntary, supported by real-time pricing, legal protections, and institutional-grade custody standards. In effect, Florida is laying the groundwork for a parallel monetary rail alongside the US dollar.

At its core, this is about risk management in a world saturated with debt. States cannot print money, but they can take steps to shield their citizens from the consequences of those who do. Gold and silver are neutral assets with no counterparty risk.

The most consequential element is tax policy. By eliminating all sales taxes without thresholds or carve-outs, Florida has removed the single largest friction point in bullion commerce. Contrast this with California or New York, where purchases of gold can still attract punitive taxes. Capital, businesses, and people gravitate towards jurisdictions that reduce friction, and Florida clearly understands this. US states compete with one another, and policy settings matter.

Other states are already moving. Thirteen US states now have some form of precious metals legislation in place. Texas, Utah, Wyoming, and Louisiana are well advanced. Georgia, Alabama, and the Carolinas are unlikely to sit by indefinitely while capital flows south. Even interstate commerce alone will exert pressure for broader harmonisation.

Internationally, it is unrealistic to expect Canberra, London, or Brussels to declare gold legal tender any time soon. Central banks prefer control. However, watch closely as tax exemptions expand, digital gold settlement platforms develop, and bullion-backed payment systems emerge. Australia’s resource-rich economy, deep bullion market, and a population increasingly alert to inflation create mounting pressure to treat gold less as a taxable commodity and more as money.

For Australian bullion investors, Florida’s move offers a glimpse of where pragmatic jurisdictions are heading as confidence in fiat systems continues to erode. Monetary history rarely changes overnight. It shifts first at the margins, then all at once. Florida has just moved the margin. Gold and silver investors should take note.