Arkansas Laws on Gold & Silver

About Arkansas

Admitted to the union in 1836, Arkansas is home to about three million people. The 33rd most populated state in the union and the 29th largest in area, Arkansas is home to Little Rock, an important hub for business and culture. Arkansas has taken modest steps to cultivate an environment more conducive to sound money ownership and use.

Last Updated: 11/25

What are the Laws on Gold & Silver in Arkansas?

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

Arkansas State Sales Tax Laws?

Thanks in large part to the efforts of the Sound Money Defense League, Money Metals Exchange, and in-state dealers, Governor Asa Hutchinson signed Senate Bill 336 into law in May 2021. SB 336 exempts coins, currency, and bullion made in whole or in part of gold, silver, platinum, and palladium, from state sales tax. 

This new Arkansas law went into effect on October 1, 2021.

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

Arkansas Capital Gains Tax?

Backed by the Sound Money Defense League and Money Metals Exchange, HB 1718 by Rep. Robin Lundstrum and Sen. Jonathan Dismang ended all taxes on purchase, sale, or exchange of specie, including state capital gains taxes. Gov. Huckabee Sanders signed the bill in April 2023.

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.

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

Gold and Silver Recognized as Money in Arkansas?

Arkansas House Bill 1718 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, 2023.

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

Arkansas Depository Laws?

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

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. 

Arkansas 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 Arkansas 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, Arkansas'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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