Alabama Reaffirms Gold and Silver As Legal Tender

Moneymetals ^ | 11 Apr 25 | Sound money league

[delta7]

Montgomery, Alabama) – Alabama Gov. Kay Ivey has signed Senate Bill 130 into law, reaffirming gold and silver as legal tender. This symbolic victory marks Alabama’s latest step toward promoting constitutional sound money in the state.

Sponsored by Sen. Tim Melson and Rep. Jamie Kiel, the Alabama Legal Tender Act recognizes “any refined gold or silver bullion, specie, or coin that has been stamped, marked, or imprinted with its weight and purity” as legal tender in the Yellowhammer State.

The law ensures that no one is obligated to accept gold and silver for transactions unless specified by a contract or required by law.

The measure, backed by Money Metals Exchange and the Sound Money Defense League, sailed through the state legislature with unanimous support, receiving no negative votes in committee or floor votes in either chamber.

Article 1 Section 10 of the U.S. Constitution reads: “No state shall… coin Money; emit Bills of Credit; [or] make any Thing but gold and silver Coin a Tender in Payment of Debts…” Senate Bill 130 aligns with this constitutional mandate.

“I’m proud to sponsor this legislation reaffirming gold and silver as legal tender in Alabama,” said Senator Melson in an exclusive interview with the Sound Money Defense League.

“While inflation continues to erode the purchasing power of the U.S. Dollar, encouraging stable, time-tested, and constitutional alternatives like gold and silver is a commonsense step. This bill upholds their constitutional status and supports sound money for our citizens across the state,” he concluded.

This marks the fifth pro-sound money law enacted in 2025, a national trend driven by the Sound Money Defense League and Money Metals Exchange for over a decade. Alabama joins Kentucky, Wyoming, and Idaho in passing related laws this year.

So far this year, Wyoming has established a $10 million physical gold reserve, Idaho passed bills eliminating capital gains taxes on gold and silver and reaffirming the two precious metals as legal tender, and Kentucky became one of the dozens of states to end sales taxes on purchases of precious metals.

After President Nixon “temporarily suspended” the convertibility of dollars into gold, America’s 54-year experiment with a purely fiat currency system has fueled high inflation, ballooning deficits, and unchecked government spending.

When savers, wage earners, and investors seek ways to protect their savings from the ravages of inflation, they often choose precious metals over fiat currency because precious metals have preserved purchasing power over time.

Since 2018, Senator Melson has advocated for several sound money bills alongside the Sound Money Defense League to expand tax exemptions and remove barriers to using gold and silver in Alabama. Senate Bill 130 offers symbolic support to Alabama citizens making this choice, and it is a modest next step toward continuing to promote sound money legislation in the state.

This year’s legislative success builds on the passage of seven sound money bills in 2024, five in 2023, and three in 2022 – each of which enjoyed strong support from the Sound Money Defense League.

With SB 130 passed, Alabama, currently ranked 9th on the Sound Money Index, is expected to rise in the 2026 edition.

[delta7]

Some States see where we are headed, they will do well in the coming years…..the majority- not.

[Blood of Tyrants]

Gold has nearly doubled in value or conversely, the dollar has weakened by half. Unless someone sets a price on gold and silver, no one will know how much they are worth at any given moment.

[know.your.why]

Gold has nearly doubled in value...

Here's a good rule to remember: Back in the 1800's a $20 gold piece would buy you a fine wool suit. Today, that same $20 gold piece will buy you...guess what...a fine wool suit.

[Blood of Tyrants]

” the Alabama Legal Tender Act recognizes “any refined gold or silver bullion, specie, or coin that has been stamped, marked, or imprinted with its weight and purity” as legal tender “

I guess that leaves out 40% and 90% US minted silver coins, which, BTW, contain only 0.7238 Troy Oz of silver per dollar of face value.

[Georgia Girl 2]

In GA you can pay your property taxes in gold or silver.

[delta7]

I guess that leaves out 40% and 90% US minted silver coins,
————
No, pre-64 silver coinage is still legal tender, no different than today’s clad coinage. The question can arise about its intrinsic value ( silver content).

Today, a pre-64 dime is worth $ 2.33 USD’s in Silver content. One USD in face value ( of dimes, quarters, halves) contains .715 ounces of Silver.

One dollar in pre-64 coinage is currently worth $ 23.08 USD’s… .715 x 32.28 ( Silver spot price). Think about that, that is how much our dollar has declined/ is declining.

Go to Coinflation to see coin values.

https://www.coinflation.com/

[Jim Noble]

It’s legal tender, but since it’s Congress with the power to “coin money, and regulate the value thereof”, it’s only legal tender at face value.

So, if Alabamians want to pay for $50 of groceries with an ounce of gold, fine.

[GrumpyOldGuy]

What I do not understand is how this actually works. I mean a “$5 silver piece” is worth a lot more than $5, so how does the value get realized.

[Jim Noble]

0.7238 Troy Oz of silver per dollar of face value

.7734.

[Jim Noble]

I mean a “$5 silver piece” is worth a lot more than $5, so how does the value get realized

The "legal tender" value of a coin is defined by Congress.

A legal tender $50 gold American Eagle is worth $50 at the store - but the gold in it is worth $3200.

I believe pricing a $3200 item at a $50 "street price", only gold accepted, is probably illegal under most consumer fraud laws.

[delta7]

contain only 0.7238 Troy Oz of silver per dollar of face value.
————
When buying/ selling pre-64 coinage, the standard rule is .715, due to circulation wear.

However, many Bullion suppliers and Coin dealers are now starting to weigh out the pre-64 bags, that is why 1964 Kennedy’s have a premium on them. A circulated 1918 half dollar can have much much less than say a 1964 half….slickers I call them.

[Mean Daddy]

There’s still a cash value. A lot of states have started their own gold currency called Goldbacks. A $1 GB is worth about $5 cash & businesses in those states will allow you to use them to purchase goods so if you go to a store & want to purchase something listed as $5, your $1 will suffice. Its confusing but you need to know what its worth if you cash out.

Just like an American Silver Eagle face value is $1 but knowing its worth $35-40, you wouldn’t hand it over for a candy bar

[delta7]

US Congress by legislation determined what USD value was to be imprinted on our Eagles ( Gold and Silver).

$50 on the 1 oz/t, $25 on the half ounce, $10 on the quarter ounce, $5 on the tenth ounce.

Congress screws up most everything they touch.

[delta7]

This answers the questions on why a Dollar amount is imprinted on US Mint Bullion and Commemoratives….

https://www.law.cornell.edu/uscode/text/31/5112

[GrumpyOldGuy]

All very interesting, that for the responses. Last comment was the best, congress screws everything up, lol.

[Vaduz]

The Yocum dollar is a historical term, not a modern currency. It refers to a legend of a lost silver mine and a silver coin that Yocum brothers allegedly minted and used as currency in the Ozark region of Missouri during the early 1800s. The Yocums traded with the Delaware Indians and eventually began using silver coins with the words “Yocum dollar” stamped on them. The story of the Yocums and their silver coins is a popular local legend, according to the Missouri Encyclopedia.
Here’s a more detailed look at the Yocum dollar legend:
Historical Context:
The Yocum brothers were part of a large family in the Ozarks, known for their involvement in various aspects of life in the region, according to the Missouri Encyclopedia.
The Legend:
The Yocums, particularly Solomon, Jacob, Jess, and Mike, are said to have worked with the Delaware Indians, obtaining silver from a nearby mine. They then began minting their own coins, which they used as currency.
The Coins:
The Yocum dollars were reportedly marked with the words “Yocum Dollar” and were used as a form of currency in the region.
The Lost Mine:
The legend includes the story of a lost silver mine, and the Yocums are linked to the discovery and exploitation of this mine, according to the Missouri Encyclopedia.
Enduring Legend:
The Yocum dollar story has become a well-known local legend, with various interpretations and additions over time, according to a Reddit post.
The Lost Silver Mine and the Yocum Silver Dollar - Reddit
Dec 18, 2022 — [Joseph] Yocum”. Nearly 200 years later, the legend of the lost silver mine and the Yocum silver dollars lives on in t...

Reddit ·
r/UnresolvedMysteries
The Yocum Brothers - Missouri Encyclopedia
Jan 11, 2023 — The Yocum Brothers * The Yocums, a prolific clan in the interior Ozarks for two centuries

[Jim Noble]

“Legal tender” has a meaning which you do not seem to understand.

The American gold eagles are legal tender. Ron Paul fought hard for this and their issuance in 1986 was a victory.

If they were not legal tender at $50, they would be tokens. Charging $3200 for $50 legal tender, but only if gold is used, is consumer fraud.

[Dick Bachert]

This is where we've been headed since we allowed wealthy CRIMINALS to violate Art.1, Section 10 of the Constitution!

“No State shall...make any Thing but gold and silver Coin a Tender in Payment of Debts” & to make clear that ONLY the federal government would coin ALL that gold & silver money, banned the states from doing so!

HOW IT HAPPENED!

PAPER DEBT MONEY:

Part 1: https://www.bitchute.com/video/J25K2rZWPuSr/

Part 2: https://www.bitchute.com/video/t955nfnXsHUN/

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OOPs. Sharing this caused your SOCIAL SCORE to drop a few points so we're pulling half your life savings out of your bank as a fine!

Have a nice day!

[delta7]

“Legal tender” has a meaning which you do not seem to understand.
——————
I gave a link to the actual published Federal law pertaining to the Mint and coinage. Your issue matters little as it has been codified into law, by Congress.

Who , what , why can be questioned, but knowing Mexican Gold, Silver ( Onzas, Libertab) and some other countries do not put a “ value” on their sovereign PM coinage, tells me the US legal tender issue is moot.

The corruption of the Federal Reserve is to be examined. I can walk into any bank in Mexico, Switzerland, China, etc…and exchange the bank with my sovereign bullion coin and they give me spot price of the Gold or Silver coin in their currency. You can’t do that in American banks.

[Jim Noble]

I can walk into any bank in Mexico, Switzerland, China, etc…and exchange the bank with my sovereign bullion coin and they give me spot price of the Gold or Silver coin in their currency. You can’t do that in American banks.

Congress has the power to coin money, and to regulate it's value, correct?

No US bank is going to give you $3200 for legally coined US money whose value is regulated at $50.