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Purchasing (or Selling) Gold and Silver in Montana
Admitted to the union in 1889, Montana is home to just over one million people. The 44th most populated state in the union and the fourth largest in area, Montana's state motto is "Oro y Plata," Spanish for gold and silver. Montana has taken one modest step to cultivate an environment more conducive to sound money ownership and use.
What are the Laws on Gold & Silver in Montana?
- Montana State Sales Tax Laws
- Montana Capital Gains Laws
- Montana Legal Tender Laws
- Montana Depository Laws
- Montana State Reserves Laws
- Montana Government Pension Funds
- Coin Shops in Montana
Montana State Sales Tax Laws?
Montana is one of a few states in the United States that does not levy a sales tax.
For more information on rolling back sales tax on constitutional money, click here.
Montana Capital Gains Tax?
Montana law, like most states, is chock full of draconian revenue statutes. Under current law, gold and silver are subject to capital gains taxation when exchanged for Federal Reserve notes or when used in barter transactions.
Income taxes are one major way government bureaucrats penalize holders of precious metals. If you own gold to protect against the ongoing devaluation of America's paper currency (which results from the inflationary practices of the Federal Reserve), you may end up with a "gain" on your gold when it's priced in dollars. Not necessarily a real gain, mind you. It's frequently nothing more than a nominal gain -- but it's nonetheless considered income against which the government assesses a tax.
However, other state legislators across the country have started to recognize that paying taxes on nominal gains is beyond the pale. Arizona and Utah recently eliminated capital gains taxation on precious metals, and Idaho hopes to follow soon.
For more information on capital gains taxation of precious metals, click here.
Montana Legal Tender?
Gold and silver have not been explicitly made legal tender in the state of Montana.
There is reason to be hopeful. In 2011, Rep. Bob Wagner introduced HB 513, a bill that would have reaffirmed gold and silver as constitutional money. Unfortunately, this act did not pass, but legislation such as this being introduced gives hope for the future of sound money in Montana.
The issue of legal tender is an important one. Philosophically, it is important to uphold the constitution. The United States constitution states in Article I, Section 10, "No state shall...make anything Thing but gold and silver Coin a Tender in Payment of Debts." Legislative acts that take steps towards this constitutional requirement are gaining steam as Utah and Oklahoma are leaders in this field, declaring gold and silver legal tender within their states.
Practically speaking, recognition of gold and silver as legal tender is important because it marks a fundamental shift of how the government views the metals. Acknowledging the legal tender status of gold and silver would mean that the state would treat gold and silver as currency rather than an asset. It generally follows that no state taxes should be levied when the precious metals are used or exchanged.
For more information on the issue of legal tender laws, click here
Montana Depository Laws?
Montana law does not currently allow for a state bullion depository.
While Montana may not currently have a bullion depository within the state, there's reason to be hopeful. Texas is championing the state depository cause and other states will likely follow suit. In June of 2015, Texas Governor Greg Abbott signed House Bill 483 into law.
Authored by Representative Giovanni Capriglione (R-Southlake), this bill allows for "the establishment and administration of a state bullion depository."
According to the official Texas Depository website, House Bill 483 "allows for the nation's first state bullion depository to be established in Texas under the supervision of the state's comptroller's office."
Upon signing the bill, Governor Greg Abbott said "with the passage of this bill, the Texas Bullion Depository will become the first state-level facility of its kind in the nation, increasing the security and stability of our gold reserves and keeping taxpayer funds from leaving Texas to pay for fees to store gold in facilities outside our state."
Montana Holding Reserves in Gold and Silver?
Financially prudent individuals set aside surplus funds to protect against unforeseen expenditures. This way, when faced with loss of income, house repairs, car trouble, or anything else, they will have a buffer against unanticipated downturns.
In the same vein, almost every state in the United States has established a “savings account” for government operations. Primarily to mitigate a decline in tax revenues that comes alongside economic slumps, states have created so-called budget stabilization funds – colloquially known as “rainy day funds.”
Unfortunately, like every other state in the union, Montana does not hold its reserves in gold and silver.
While Montana may not hold its reserves in gold and silver yet, Tennessee is setting an example by considering legislation that would allow for this. Tennessee Representative Bud Hulsey introduced House Bill 0777 in 2017 which "requires the state treasurer to invest 40 percent of the funds in the rainy day fund in gold bullion of other precious metal bullion." This bill will be voted on in 2018.
For more information on Budget Stabilization Funds, click here.
Is Montana Holding Physical Gold & Silver in Government Pension Funds?
Millions of Americans will rely on pensions once they've reached the age of retirement. Pension fund managers have a fiduciary duty to safeguard funds against foreseeable risks.
With the practices of today's Federal Reserve, there is no risk more foreseeable than inflation! But with very few exceptions, pension money managers are not fulfilling their duty to protect against this significant risk by investing in assets that are specifically suited to defend against the perpetual decline of the dollar's purchasing power. Chief among these assets are physical gold and silver, the most reliable inflation hedges from time immemorial.
Tens of millions of Americans and their employers pour money into pension plans each month, counting on those funds to grow and be there when needed at retirement.
But a time bomb awaits. The bulk of U.S. pension funds are dangerously underfunded, and the assets are often invested in securities that have bleak prospects for providing income that keeps up with a general decline in purchasing power. In the case of underfunded government pensions, higher taxes invariably follow combined with potential default on obligations to retired workers.
Unfortunately, Montana's government pension funds do not appear to hold ANY assets in physical gold and silver.
Texas gives states an example to emulate. The Texas Teacher Retirement Fund and the University of Texas own nearly $1 billion in physical gold. As a non-correlated asset to bonds, stocks, and other paper-based investments, precious metals are key to true diversification.
For more information on pension funds, click here.
Local Coin Shops in Montana
Three Featured Coin Shops in Montana
Coins & Carats Jewelry Store
237 S Main St
Kalispell, MT 59901
Missoula Gold & Silver Exchange
2020 Brooks St
Missoula, MT 59801
Wayne Miller Coins
38 N Last Chance Gulch
Helena, MT 59601