Surprising Gold Laws Around the Nation: An Investor’s Guide

There are surprising, some might even say nonsensical, laws in every part of the United States. In Owensboro, Kentucky, a wife must get her husband’s permission before buying a hat, according to city law. Surprising gold laws around the nation aren’t always as funny.

Weird Federal Gold Laws

Federal Gold Laws

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The federal government has been regulating gold and trading in gold for a long, long time. The U.S. Treasury Department has been making coins and bills to serve as currency since the 1700s. The United States has been minting gold coins for just as long. Today, gold coins have a changing value that depends on weight and certain global economic factors.

The worth of gold coins is also determined by certain federal gold laws, some of them rather surprising. American Eagle gold coins were first minted in 1986 and approved through Congress the year before. These gold coins are traded around the world, but they’re strictly USA-made. That’s the law.

The American Eagle gold coin is bound by federal law. It may only be minted in 22-karat gold, and only from newly-mined sources within the boundaries of the United States. Because American Eagle coins can only be made from American gold, the Treasury Department is limited in how many coins they can create. Also by law, silver and copper are added to American Eagle gold coins to prevent scratching and improve overall durability. This means that the coins themselves aren’t comprised solely of pure gold, and some find all these laws and regulations surrounding American gold coins to be very surprising.

Surprising State Laws Regarding Gold

State Gold Laws

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Thanks to the U.S. Constitution, every state has the right to govern itself…but that doesn’t mean they always come up with the most reasonable laws. There are surprising laws regarding gold in several states around the nation. If you don’t know the laws, you’re in danger of violating them!

  • California: Selling a gold piece that doesn’t contain tooth marks is an illegal forgery.
  • New Jersey: Purchasing gold is regulated in New Jersey, where pawnbrokers and jewelers commonly deal in the metal. Many different laws are in place to protect the seller against buyers to make sure that they receive their money’s worth for gold items. One law states that gold buyers must publicly post the prices they pay for precious metals.
  • Utah: Gold and silver coins are legal tender statewide. Thanks to a new law signed in October 2012, it’s legal to pay state taxes in gold and silver coins. Because of the law, no capital gains or state taxes will be levied during coin exchanges. Federal taxes, however, do still apply.
  • Washington: It’s legal to prospect for gold in Washington State. Get the Gold and Fish booklet from the state Department of Fish and Wildlife to get all the rules and regulations of gold mining in Washington.

Gold investors have to know all the laws regarding their commodity, because breaking a law could result in having gold confiscated by the government. If you’re dealing in gold, know what you’re dealing with backwards and forwards – in every state where you plan to buy, sell or trade.

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