What if the real issue is not that gold is becoming more expensive, but that the money used to measure it is steadily losing its value?

It is a question with renewed resonance: gold has repeatedly set record highs against the dollar over the past two years, while the 2021–2023 inflation surge — which peaked in mid-2022 at the fastest annual pace in roughly four decades — refocused attention on how quickly cash can lose purchasing power.

That question framed my latest conversation with JP Cortez, Executive Director of the Sound Money Defense League, in which we examined what this dynamic means for savers — and why he believes gold and silver should once again play a larger role as money. The Sound Money Defense League is a US-based advocacy group that campaigns primarily at the state level for measures such as removing sales and capital-gains taxes on precious metals.

Cortez argues that a piece of advice many people grew up with — simply save your money — no longer works the way it once did. In an inflationary monetary system, holding cash for long periods can mean watching its purchasing power steadily erode.

His proposed remedy is not a new gold standard imposed from Washington. Instead, Cortez believes individuals should have the freedom to choose gold and silver as alternative forms of money, free of the taxes and regulations that currently make doing so more difficult. The existing framework is not trivial for savers to navigate: under US federal tax law, physical bullion is treated as a collectible, so long-term gains can be taxed at rates of up to 28 percent — above the top rate applied to most other long-term capital gains.

He also explains why US states themselves are now considering holding physical gold on their balance sheets. State-level momentum has been building for years — more than 40 states now fully or partially exempt physical gold and silver from sales tax, and Texas has operated a state bullion depository since 2018. Interest from state treasuries also echoes a global trend: central banks worldwide have been net buyers of gold every year since 2010, and in recent years have purchased more than 1,000 tonnes annually, according to World Gold Council data — the strongest sustained run of official-sector demand on record.

With US debt around $40 trillion, Cortez believes continued spending and money printing are bullish for gold and silver. The fiscal backdrop he points to is substantial: the federal government's interest bill has climbed above $1 trillion a year, making interest one of the largest single items in federal spending. Ultimately, he describes buying precious metals as a vote of no confidence in the US dollar.

For readers tracking this story, the concrete developments to watch are legislative rather than speculative: whether more states move to exempt bullion from taxation, whether additional states follow in allocating reserves to physical gold, and how the debt-and-deficit debate in Washington unfolds.

About the author

David Russell is the CEO of GoldCore. Until Summer 2023, he served as Director of Marketing and Communications, responsible for the firm's marketing and communications strategies and branding. He joined GoldCore in 2008 as Director of Business Development and took over as Director of Marketing and Communications in 2020. Earlier, he managed and operated his own marketing agency and completed multiple coaching qualifications.

"Working for GoldCore gives you a fantastic lens through which to view global financial and geopolitical developments. I am very proud to be part of a company that contributes to increasing investors understanding of these developments."

Away from work, Russell is a passionate sailor who has twice completed the Round Ireland Yacht Race.