| | | Texas authorizes use of gold and silver as legal tender for day-to-day transactions
Jun. 30, 2025 5:50 PM ET
By: Carl Surran, SA News Editor
Texas Governor Greg Abbott said Sunday he signed a bill into law that designates gold and silver as legal tender for everyday financial transactions within the state.
The bill, expected to take effect in May 2027, amends the state government code to recognize the precious metals as legal tender and for residents to use them in everyday transactions based on the state comptroller's determined value at the time.
Under the new law, the comptroller's office will contract with a debit card provider to facilitate transactions; Texans will be able to deposit gold or silver into their accounts, and the debit card will convert those holdings into dollar amounts at the point of sale.
While specific details such as transaction fees and merchant participation are still being developed, the system is envisioned to function much like a standard debit card.
On Monday, gold futures edged higher, supported by a weaker U.S. dollar, as markets continued to weigh the prospect of a ballooning U.S. government deficit and the potential for trade deals.
Citi analysts said they foresee gold prices consolidating in the $3,100-$3,500/oz range in Q3, as prices moderate due to geopolitical de-escalation in the Middle East and an improved global growth outlook, and fundamentally weakening thereafter, driven by lower investment demand.
"We expect continued price consolidation... and highlight our view that we may have already seen the highs at $3,500/oz in late April as the gold market deficit is peaking soon if not already," Citi wrote.
The bank said it expects gold prices to fall back to $2,500-$2,700 by H2 2026, and it "strongly [recommends] gold producers take insurance against downside in prices from current levels."
On Monday, front-month Comex gold ( XAUUSD:CUR) for July delivery ended +0.6% to $3,294.40/oz, while front-month Comex July silver ( XAGUSD:CUR) closed -0.5% to $35.852/oz; for the just-ended Q2, gold rose 5.5%, lifting the metal's YTD gain to 25.3%, its best showing sforce H2 2007, and silver added 4%, up 23.9% YTD. |
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