Connecticut Goes For the Gold
Via GATA by way of Chris Marcus
At its core, this bill is about restoring financial sovereignty and resilience for the people of our state. It does so by acknowledging a fundamental truth: the purchasing power of the U.S. dollar has been in relentless decline since the Bretton Woods Agreement post World War II.
Authored by Erik Bartone
WRITTEN TESTIMONY OF ERIK BARTONE
In Support of Senate Bill 1552
“An Act Promoting the Ownership and Use of Gold and Silver in the State and Establishing the Connecticut Bullion Depository and the Gold Start Savings Program”
Connecticut General Assembly – Finance, Revenue and Bonding Committee April 14, 2025
Chairpersons Fonfara and Horn, Vice Chairs Cabrera, Miller, Constantine, and Rader, Ranking Members Fazio and Polletta, and members of the Committee:
Thank you for the opportunity to submit testimony in strong support of Senate Bill 1552, which represents a bold, forward-thinking effort to provide the residents of Connecticut with the tools to safeguard their savings, diversify their holdings, and protect themselves from the long-term effects of inflation and monetary instability.
Why Gold Ownership Matters to Connecticut
At its core, this bill is about restoring financial sovereignty and resilience for the people of our state. It does so by acknowledging a fundamental truth: the purchasing power of the U.S. dollar has been in relentless decline since the Bretton Woods Agreement post World War II.
Since the U.S. severed the gold standard in 1971, the value of the dollar—when measured in gold—has declined by more than 98%. In 1971, one ounce of gold was valued at $35. Today, it takes over $3,100 to buy that same ounce. This is not because gold has changed. Gold is constant. It is the dollar that has and continues to depreciate.
This depreciation is not accidental—it is structural. The U.S. federal government runs persistent and unsustainable annual fiscal deficits, routinely spending far more than it collects in revenue. These deficits are financed through monetary expansion, which in turn erodes the real value of the currency. It is, in effect, a hidden tax. And it is the citizens of this country especially the working and middle class — who pay for this through higher food prices, unaffordable housing, and dwindling retirement security.
We can expect continued high inflation in the future as a structural monetary reset is currently underway. Rising public and private debt levels will continue to erode the purchasing power of the U.S. dollar, making gold ownership a more important component to our Connecticut resident’s saving options.
Gold Has Outperformed Equities and Bonds Since 2000
Over the past 25 years, gold has not just preserved wealth—it has grown it:
Gold has risen over 1,050% since 2000, increasing from approximately $270/oz to over $3,100/oz today.
During that same time period, the S&P 500 has returned approximately 400% (including dividends).
Bond returns, especially in the current rising-rate environment, have severely underperformed—failing to keep up with inflation, and in many cases delivering negative real yields.
Gold Preserves Purchasing Power: A Housing Comparison
To illustrate how gold protects purchasing power, consider the cost of a home:
In 1971, the median U.S. home cost around $25,000, while gold was $35/oz. That meant it took 714 ounces of gold to purchase a home.
Today, a home costs about $400,000, but gold trades at $3,100/oz. It now takes only 129 ounces of gold to buy a home.
That is an 80% decrease in the number of ounces needed to purchase a home. Gold has protected the ability to buy essential goods like housing. The dollar has not.
SB 1552: A Vision for Financial Empowerment
Senate Bill 1552 offers a groundbreaking path for Connecticut residents to reclaim control over their financial futures:
The Connecticut Bullion Depository: This institution would provide secure, in-state storage, enable gold-backed savings accounts, and make physical gold investing more accessible to middle class Connecticut residents.
Gold Start Savings Program: An innovative, merit-based initiative to reward academic achievement in underserved communities with gold deposits, helping to build intergenerational wealth and a base understanding that saving is the key to rising living standards.
Sales Tax Relief for All Precious Metals Purchases: The bill removes the current $1,000 minimum purchase requirement for sales tax exemption on gold and silver. This is especially important for working-class families, who may not be able to afford large lump-sum purchases but deserve access to inflation-resistant savings. By eliminating this arbitrary floor, Connecticut makes precious metals ownership more equitable and accessible to our underserved and middle class residents and also promotes dollar-cost averaging when making purchases.
Capital Gains Tax Relief: The bill exempts long-term gains on gold and silver from Connecticut income tax, encouraging savings and reducing tax penalties on prudent investment.
Conclusion
Gold is not volatile—our fiat currency is. The dollar has lost over 98% of its value in gold terms since 1971, and this decline is baked into our monetary policy. By enabling Connecticut residents to own, and save in gold and precious metals, this bill helps protect the people of our state from a system where value is continually eroded to fund runaway federal deficits.
This is not ideology—it is math, history, and prudent policy. I urge this committee to pass Senate Bill 1552 and help Connecticut lead the nation in restoring sound money and economic freedom.
Respectfully,
Erik Bartone
Constituent, Resident of Glastonbury, Connecticut
