Central banks fuel Gold rush while U.S. states reclaim Sound Money principles [Video]

In a July 2025 episode of Commodity Culture, host Jesse Day of VRIC Media interviewed Jp Cortez, Policy Director and Executive Director at the Sound Money Defense League and representative of Money Metals Exchange. 

Their discussion spanned central bank gold buying, the global de-dollarization movement, and recent legislative efforts in the U.S. to reinstate gold and silver as constitutional money.

Their conversation is revisited with an edited clip on the Money Metals Podcast.

Central banks drive Gold demand despite high prices

According to the 2025 Central Bank Gold Reserves Survey by the World Gold Council, 95% of central banks expect global gold reserves to rise over the next 12 months. This is occurring despite gold hovering near all-time highs.

Jp Cortez attributes this bullish outlook to non-price-sensitive strategic buying by central banks. 

“This plays a massive role—debatably the largest,” Cortez explained. 

He cited research from Jan Nieuwenhuijs, a gold analyst for Money Metals, showing that countries such as China, Poland, and Turkey are ramping up their gold holdings.

In particular, China’s covert accumulation strategy—avoiding official disclosures—reflects a broader trend of geopolitical hedging. Central banks are seeking insulation from U.S. economic and political influence, especially following events like the 2022 Russia-Ukraine conflict and subsequent Western sanctions.

Cortez emphasized that gold buying is not only an economic hedge but a political one: “You're hedging against sanctions and trade wars… against inflation, against currency devaluation.”

The global push to exit the U.S. Dollar

Cortez argued that ballooning debt, persistent inflation, and erratic U.S. trade policy—such as repeated tariff proposals from former President Trump—are compelling both foreign nations and U.S. states to reduce reliance on the dollar. 

“It only makes sense that these countries would then have less functional need to hold U.S. dollars,” he noted.

He described gold and silver as “politically neutral, inflation-free money” and warned that citizens worldwide—particularly in crisis-prone economies like Argentina and Zimbabwe—are reverting to barter, gold, or even in-game digital currencies due to local fiat collapse.

U.S. states lead grassroots Sound Money revival

On the domestic front, Cortez reported unprecedented legislative momentum for sound money in 2025: 

“This year is the greatest sound money year in the history of our organization.” More than 32 U.S. states—over 70%—introduced legislation concerning gold and silver.

Key policy wins include:

• Eliminating sales tax on gold and silver purchases in numerous states.
• Removing capital gains tax on precious metal sales.
• Wyoming’s $10 million gold reserve, physically held in-state and listed on its balance sheet.
   

These legislative actions aim to “remove the disincentives” that deter individuals from using gold and silver, Cortez said. He added that inflation and dollar debasement are making “dinner table conversations” out of complex monetary issues like purchasing power loss and Federal Reserve policy.

Florida’s Sound Money bill: A cautionary tale

Despite the nationwide momentum, Cortez cautioned against poorly crafted legislation. He criticized a recent Florida law—celebrated by Governor Ron DeSantis for legalizing transactional gold and silver—as “the most catastrophic thing I’ve ever seen enacted by a state!”

According to Cortez, the law imposes new money transmitter and storage regulations that invite surveillance and bureaucratic interference. 

“This is a net negative for sound money,” he warned, urging supporters to read bills carefully and focus on removing friction, not adding it.

Bottom-up solutions and Gresham’s law

When asked if the U.S. could return to a functional gold standard, Cortez emphasized grassroots over government-led initiatives. 

“We don’t need a top-down monetary system,” he argued. “We need bottom-up money. We need the government to get the hell out of the way.”

He pointed out that private platforms already exist for transactional gold use, and individuals can opt in today without new laws. However, Gresham’s Law—bad money drives out good—remains a limiting factor. Most people are reluctant to spend their real money (gold/silver) when fiat is still accepted by vendors.

While the infrastructure for transactional precious metals exists, Cortez believes the real battle is informational:

“States don’t have to sit by and watch as the Federal Reserve destroys the currency of our country.”

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