Utah to vote on adding gold and silver to a recongnized currency

Fox news link: Just another sign of the dollars end could be near... Other states to follow?

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

 

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I don't think this signals the end of the dollar, but could be a small step in the right direction of strengthening the dollar again.

 

"...legislation that would recognize gold and silver coins issued by the federal government as legal currency..."

So.... does the federal government have plans to mint new gold and silver coins? How small would a one dollar silver coin be? Less than half the size of a dime (even smaller than a half-dime) with current melt values.

 

In the highly unlikely event that the government ever decides to mint silver coins for circulation, it would be more likely that it would either be a large denomination coin [perhaps a half dollar size $20 coin]. Or they could do what was proposed [but rejected] in Mexico -- to produce a silver coin with no printed face value that where (1) the value would be periodically set by the government, (2) the value would always be a premium to melt value to prevent melting, and (3) the face value could never be reduced. I find this proposal highly interesting for reintroducing silver coinage to circulation. Some people criticize this proposal saying that people won't accept the coin if the melt value is below face, but this isn't true because people accept coinage and paper money where the intrinsic value is below face all of the time. But this would restore at least some intrinsic value to money and offer some protection from inflation.

But to be very clear, I don't expect to ever see this happen.

 

i still pray for Utah's shining future. if the majority votes to use gold and silver as currency, this will have a big effect on silver price and all of our current investments.

 

Let's see if we can get one more thread going on this.

 

The article quote actually didn't state it correctly. Utah would make the coins "state legal tender", not currency. This means the state will accept the coins for any payment to the state including taxes. It does not compel anyone else in the state to accept it.

 

There is a topic on this already posted in the "coin chat" section. My mistake. Please post there on this topic.

 

Amazing but not surprising.

From the way I read it, you could use gold or silver eagles BUT also 90% silver, in trade and to pay your taxes. Needlesstosay, it would be a spot price equivalent AND did you notice the exemption of gold sales from state capital gains tax.

Curiouser and curiouser. I'm thinking about buying some Canadian currency and locking it up.

peace,

rono

 

Well it looks like it has been passed the House....

http://visiontoamerica.org/story/ut...recognizing-gold-silver-as-legal-tender-.html

 

Can't See This Happening

This idea will never work because Gold and Silver prices fluctuate so much.
A gold and silver based currency would work if you were a remote island in which you controlled the price and no gold or silver was allowed to leave the island.Would have worked 100-200 years ago but not today.
In a country like the U.S.,retailers would need a calculator and a screen with the latest precious metals prices for virtually every transaction.In an upward spike the coins would virtually dissappear overnight with hoarding.In the event the price falls you would not expect a retailer to take your silver coin which yesterday was worth $25.00 but today is worth $22.50.
I just can't see this working in everday transactions.
A government having Gold as part of it's assets without re-deemable notes or coinage is a more likely scenerio.

 

You know what, that's an interesting point and I've never even considered that??

How WOULD retailers be able to accept gold/silver coins with the way they fluctuate unless they fix the price, no matter what the fluctuation is....

So if you want to compare, it's almost like pumping gas since everyday, the price can change on you....

 

If the purpose is to strengthen the US dollar, and if it did, the price of gold and silver would most likely drop correspondingly. A copper coin the size of a quarter could be issued with a face of $20 and the silver content of a 1/20th of an ounce. It would have a psychological effect as to the strength of the USD, lower the price of PM, as I think there is easily enough metal ( above and in mines) to do it without too much problems.

The trouble is that most on the forum seem to want both increased dollar strength and continuing high PM prices which do tend to contrary. Or perhaps they intend to sell on the news, but most seem to intend to hold far too long. IMO.

Jim

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A lot of the problems go away if you recognize that silver and gold are really new currencies. You don't expect a pound or euro to be stable, and perhaps the new silver and gold dollars will fluctuate too.

The other possibility is as I stated above. Produce a silver coin with a face value that will aways be slightly more than melt, but that can only increase in value and never decrease.

But I agree it won't happen.

 

I suppose I will say it once again, this measure reinforces that the dollars days are numbered. When will the death blow happen? Who knows. I also think that the gold standard will not work for this Counrty any longer. The way I see it is that several States already isue their own currency (paper money) with Berkshares being one of the more popular among them.
The Fed's debt the tension throughout the World, concerns of inflation, public confidence in the Gov and it's fiat money, it's all going down the tubes.

Their will be a new World Currency, perhaps a mixed bag of curriencies and until this is established, PM's will be a safe haven to maintain one's wealth instead of the paper greenback. JMO.

Currently sitting on 13 rolls of Silver Eagles and 4.25 oz gold, yes I am a poor man trying to preserve what I can. Again today I went to the gun store and bought an additional 125 rds of .45ACP, 100 rds of .223 (5.56mm) and another brick of 500 22LR and it cost $234.00 up almost $5 from late last week.
From a security stand oint it is my objective to have 500 rds of .45 APC, .223, 9mm and 12G "00" Buck along with 1000 rds of 22 LR for small game if need be.

 

I don't think I'd take $50 for my American Gold Eagles, if you think the gov't will use the spot price, you got another think coming...

 

Been more than a year since this news from Utah. Anything new on it? I'm in Iowa but I may need to pay a visit to a bullion friendly state!

 

The difference is that national currencies fluctuate in value against each other, requiring transaction by transaction pricing of international sales, but within a country people expect prices to be stable from transaction to transaction in terms of their own national currency.

 

Nothing but politics pure and simple.
They could have used bags of wheat and bushels of corn instead of gold and silver and it would have had the same effect.

 

I heard about this roughly one year ago, and I would like to inquire in which ways this law has so far found actual use? I mean, can people really go into a supermarket and make payments with precious metals based on weight and finesse?

It's quite, an ah......... curious law!