Gold prices are higher on Friday morning, after a weak US jobs report and a falling 10-year yield. The marketplace is currently anticipating a better-than-70% likelihood of a 50 basis-point cut by the Fed at the September FOMC meeting. The price of gold is trading at $2,464.40, up $18.14. The price of silver is trading at $28.84, up 31 cents. A new law Senate Bill 232 (SB232) that went into effect in Louisiana on August 1, 2024, recognizing gold and silver as legal tender within the state. This legislation, known as the Louisiana Legal Tender Act, allows individuals and businesses to use gold and silver coins issued by the U.S. government as a medium of exchange in voluntary transactions. The law also exempts the exchange of gold and silver from state sales taxes, effectively treating them as money rather than commodities. Supporters of the act argue that it will help protect Louisiana citizens against the devaluation of the dollar and provide an alternative to the Federal Reserve’s monetary policy. The article suggests that this move could potentially undermine the Federal Reserve’s monopoly on money and encourage the use of sound money in the state. The enactment of SB232 makes Louisiana the fifth state to recognize gold and silver as legal tender, as they always should have been doing. Utah led the way, reestablishing constitutional money in 2011. Wyoming, Oklahoma, and Arkansas have since joined.
