Utah considers return to gold, silver coins

I did not see this posted yet so I figured I would just give use guys something to talk or read about.....

http://www.foxnews.com/politics/2011/03/03/utah-considers-return-gold-silver-coins/

 

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I have deleted this as it is a duplicate thread.

 

This is the first time I'm hearing about this. and I live in Utah. They have not reported it on local news.

 

Utah to vote on using silver/gold as currency

I found a very interesting article on Fox News about a house resolution within the Utah senate to authorize the use of gold and silver coinage in day to day commerce and to pay taxes.
http://www.foxnews.com/politics/2011/03/03/utah-considers-return-gold-silver-coins/

What the article doesn't state is whether the authorities would accept it at face value, or the inherent bullion value.

I thought all those coins minted by the US Mint were legal tender anyways. Although you'd be pretty foolish to pay for something with a $50 gold eagle, when there's over $1400 dollars of gold in it!

 

I believe Mississippi or Lousiana (Can't remember which) is doing something similar to that

 

Let's think about this, while it sounds good on the surface do you want to have to pay your taxes in gold? Taxes are a debt and inflation helps debtors.

 

This is the third time I have seen this topic mentioned on this forum and I don't live in Utah.

 

No you didn't otherwise I wouldn't be able to see it.

 

There are now two CoinTalk threads discussing the article. I think there will probably be a few more on here soon. I think Fox just posted the article within the last couple of hours.

People on this forum will have an interest, no doubt.

 

OK, I tried to delete it but didn't see an option other than to edit it. So I deleted the text.

 

my point was that they are not talking about it here in Utah.

 

Imagine what that would do to the price of gold and silver if everyone had to get some so they could pay their taxes. There just isn't enough gold in the country for everyone to use. I was reading recently about when Nixon took us off the gold standard. At the time, we had about $20 billion in gold reserves, and Britain wanted to exchange something like $10 billion in currency for gold, and the government knew that if that trend continued we'd run out of gold in no time, so they took us off the gold standard.

 

I'm new to all of this but I would assume that as more states follow suit, the value of both will skyrocket

 

This has been mentioned all ready above, But how will the coins be valued? Face value or bullion value. And exactly how will debts be settled? Based on spot value at the time the debt is incurred, time the debt is due or at the time it is paid ? the way values bounce around all 3 could be very different. The only way a system like this could work is with a set value for gold and silver.

 

What if Utah becomes a sovereign state and isn't controlled by feds? Many states already have done that over gun control. But I see your point as to whether or not it will be face value or value of the current oz. I guess that state could make their own gold or silver pieces worth face value?? I don't know.

 

That's my point, it won't work unless the whole world does it and sets an agreed upon value, good luck with that! But I do have to disagree with the argument that there is not enough gold/silver in the world. that all depends on the value they peg gold at. There isn't enough with gold at 1K or 2K per ounce, but if it is pegged at lets say 10K or 20K or higher, there might be.
Also Utah might want to accept precious metals as payment, do you think they will be as willing to pay out?

 

I do like the idea of exempting gold sales from a capital gains tax.

 

Thats because Fox News is in their own little world, not the real one. If you believe 1% of what they say, thats 2% too much.
Guy