But is that legal?

Asking 'what is money?' can lead you quickly into a dark, deep pit.

The Bank of England (BoE) is one obvious place to check. Its website informs: "It is up to a government to decide the value of its fiat money and to regulate its supply. This system relies on public trust in the government and its management of the economy, rather than on the set value of a physical asset."

But UK businesses have the right to accept or reject different forms of payment. All UK coins are 'legal tender' but 5 pence and 10 pence coins count as legal tender only for amounts up to £5; 50 pence coins are only legal tender for amounts not exceeding £10. So some coins are 'legal tender' but with limits.

In the US, 'legal tender' refers to all coins and currency issued by the Federal government.

But here too government leaves businesses room to choose. They can set their own rules as to whether they will accept a Federal note or coin as legal tender.

When it comes to gold, the metal has been used as money for thousands of years. But is it legal tender?

Not exactly

Legal tender is anything a government issues and decides to call 'money'. In the US, businesses are at liberty to decline being paid in what the state issues. If a store wants to accept only baseball cards in payment, that's up to the store.

A quiet revolution is now crossing the US. Since the early 2020s a growing number of states have passed legislation recognizing gold and silver as legal tender and - perhaps more important - directing state treasuries to acquire and hold physical gold as a reserve asset. More than 27 states have introduced legislation aiming to re-monetize gold.

So far the federal government has not acted against these states, which are taking toddler steps, removing taxes and thus allowing gold transactions at the state level. Under the US Constitution states are prevented from coining money and shall not make anything "but gold and silver coin a tender in payment of debts."

2025 however saw a rash of 'transactional gold' bills, designed to make it possible for residents to hold gold in state-run depositories. Arkansas broke the ground for this by linking gold and silver to the everyday digital payments system people already use. Florida signed comparable legislation in May 2025. Florida's Governor Ron DeSantis said the move was a defense against the "declining value of the Dollar." Texas followed suit a month later.

Not worth a Continental

In the 17th century the American colonies issued their own paper notes. Without any backing the result was inflationary. During the Revolutionary War Congress issued Continental Dollars to finance the war but without gold or silver backing and no reliable tax base the notes collapsed in value, giving rise to the expression "not worth a Continental", meaning worthless. The Civil War again shattered the hard money framework. Gold and silver convertibility was then suspended and the Congress turned to paper money; both the Confederate state and those supporting the Union ended the war with serious inflation.

The US states embracing of gold and silver and their recognition of the metals as money is a return to a form of Gold Standard. This modern legal tender movement is both a political statement and a legal argument. Legally, the Constitution mandates gold and silver as the only valid state-level legal tender. Politically, it is a movement driven by concern that the federal government no longer has proper control of the economy, the national currency, and the country’s debt, now almost $39 trillion.

For UK clients: At Glint, we make every effort to demonstrate a balanced conversation between gold, silver, crypto and fiat currencies when it comes to purchasing power and, while we strongly believe that gold is the fairest and most reliable currency on the planet, we need to point out that it isn’t 100% risk free. While we have seen a steady increase over time, the value of gold can fall, which means that its purchasing power can also decline.

For US clients: Graphic representations of value are for illustrative purposes only. The Glint debt card is issued by Sutton Bank, member FDIC. The sale, purchase and storage of precious metals are offered by Glint and not Sutton Bank. Your investment in precious metals through Glint is

·        Not insured by the FDIC.

·        Not a deposit or other obligation of, or guaranteed by, Sutton Bank.

·        Subject to investment risks, including the possible risk of loss of the principal amount invested.

All investments involve risk, including possible loss of principal. The value of precious metals is affected by many economic factors, including but not limited to the current market price, demand, perceived scarcity, and quality of the precious metal. Precious metals can increase or decrease in value. Past performance is not a guarantee of future results. As such, investing in precious metals may not be suitable for everyone.