Alabama Laws on Gold & Silver

About Alabama

Admitted to the union in 1819, Alabama is home to about five million people. The 24th most populated state in the union and the 30th in area, Alabama is home to metropolitan hubs Montgomery and Birmingham and is nicknamed "The Yellowhammer State," after the state bird. Alabama has taken modest steps to cultivate an environment more conducive to sound money ownership and use, though no introduced measures have been passed.

Last Updated: 11/25

Latest In-State Developments

In 2025, Senator Tim Melson (R-Florence) introduced and worked with the Sound Money Defense League to pass Senate Bill 130. SB 130 declared gold and silver legal tender in the state of Alabama and was signed into law by Gov. Kay Ivey.

The Sound Money Defense League continues to work closely with legislators and in-state allies to provide avenues of escape from the Federal Reserve's damaging inflationary monetary policy in Alabama.

What are the Laws on Gold & Silver in Alabama?

• Alabama State Sales Tax Laws
• Alabama Capital Gains Laws
• Alabama Gold and Silver Money Status
• Alabama Depository Laws
• Alabama State Reserves Laws
• Alabama Government Pension Funds

Alabama State Sales Tax Laws?

Alabama has started the process of freeing gold and silver from bureaucratic shackles.

Gold, silver, platinum, and palladium coins, bars, and rounds are exempt from sales taxes in Alabama. The Sound Money Defense League worked with Rep. Sorrell to secure the current exemption in 2018 and several subsequent sunset date extension.

For more information on rolling back sales tax on constitutional money, click here.

Alabama Capital Gains Tax?

In May 2024, Alabama Governor Kay Ivey signed Senate Bill 297, which removes all income taxes on capital gains from the sale of gold and silver, enabling the state to take an important step forward in reinforcing sound money principles.

With this move, Alabama joins a growing number of states prioritizing the protection of citizens against the deleterious effects of inflation, currency debasement, and mounting federal debt.

For more information on capital gains taxation of precious metals, click here.

Gold and Silver Recognized as Money in Alabama?

Alabama Senate Bill 130 declared that gold and silver are Constitutional legal tender and that no person or entity can compel another person or entity to tender or accept gold or silver coin or specie. This bill was signed into law in April, 2025.

Money is not a creation of government. The process through which money was “created” was not one of central planning but of markets. Gold and silver were chosen as money by the free market over thousands of years and should thus be recognized as money.

Following the example envisioned by the Founding Fathers and described in Article I, Section 10 of the United States Constitution, states should reaffirm not only some forms of gold and silver, nor only gold and silver minted by the U.S. Mint (which did not exist when the Constitution was written), but all gold and silver, as the Founders intended.

For more information, click here

Alabama Depository Laws?

There are no private or state operated bullion depositories operating freely in Alabama.

Gold and silver bullion depositories provide secure, insured storage of individuals’ or businesses’ assets outside of their homes or businesses. High-level depositories reduce the risk of theft or loss for the owners while providing custodial services for a fee. Storage of precious metals coins and bullion is an important point to consider for individual savers, businesses, financial managers, and even states and countries.

The most impactful thing a state can do as it regards depositories is ensuring that private depositories can establish and operate freely without onerous or privacy-invasive regulations.

Most states have no use for a bullion depository, as most don't own a single ounce of gold. Although one state has established a government-run depository, private depositories are more common, popular, and independent of government control. In most states where they are located, private depositories tend to operate without burdensome regulation or surveillance by government systems, and they are independently audited and insured. 

Alabama 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, Alabama does not hold any of its reserves in gold and silver.

Wyoming and Utah have led by establishing multi-million dollar physical gold reserves to bolster their state's finances.

For more information on Budget Stabilization Funds, click here.

Is Alabama 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, Alabama's government pension funds do not appear to hold ANY assets in physical gold and silver.

For more information on pension funds, click here.

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