Utah Approves Gold! (as legal tender)

Libertarian Republicsn ^ | April 6, 2011 | Eric Dondero

[FreeKeys]

Wednesday, April 6, 2011

Utah Approves Gold!

“The gold standard would keep you from printing money and destroying the middle class,” said Republican Congressman Ron Paul

From Eric Dondero:

Utah Governor Gary Herbert has just officially signed a Bill to completely legalize gold and silver as legal tender in the State. The Bill was originally proposed by libertarian Republican state legislator Rep. Brad Galvez.

From FutureofCapitalism blog:

Utah has become the first state to pass a law exempting gold and silver coins from the state's capital gains tax and requiring the state to recognize gold and silver coins as legal tender, the Deseret News reports. The governor signed the bill into law on March 25. The text of the bill is here. It also orders a study of "the possibility of establishing an alternative form of legal tender for the payment of debts, public charges, taxes, and dues within the state."

Further, American Principles Project reports that similar bills are currently pending in other states:

"Utah is the first state to move toward recognizing gold and silver as money. Ten other states have proposed similar bills, but none have been voted out of committee."

Photo h/t usagold.com

[FreeKeys]

I hope they can make depository receipts to be legal currency.

[COBOL2Java]

From a practical standpoint, how will this work?

[savedbygrace]

That’s 1.

[RWB Patriot]

I’d imagine it’ll be like the “money” we already use...except you’ll be able to get a lot more with less of it since it actually has value.

[FreeKeys]

any thoughts?

[therightliveswithus]

Sweeeeet

[sickoflibs]

Is that legal?

[dynachrome]

It’s a start!

[MrB]

I forget which liberal ‘rat said it recently, but they REALLY hate the idea of “backed” currency, because it takes away a lot of their power to inflate the currency to care for the poor.

[MrB]

Actually, that was my belief a while back, as well, that states could not coin money.

The actual prohibition, however, is only on fiat currency like the fedgov issues. PM coins are allowed, constitutionally.

[FreeKeys]

Is that legal?

Yeah, but more than that. It's moral too.

[Red Badger]

Capitalism works..............

[Carry_Okie]

Article I, Section 10, US Constitution: No State shall... coin Money; emit Bills of Credit; make any Thing but gold and silver Coin a Tender in Payment of Debts...

IOW, they may neither coin money, nor print certificates backed by gold and silver coin.

[Publius]

By using the term "legal tender", they are declaring that the value of a Gold Eagle is $50, its face value if it is used as money. Likewise, a Silver Eagle's face value is $1.

This is unfortunate. For this reason, no one with a brain will use gold and silver bullion coins as legal tender in Utah. This provision of the law was ill-advised and needs to be rewritten.

[InterceptPoint]

From a practical standpoint, how will this work?
+++++++++++++++++++++++++++++++++
While I’m glad to see this development on general principles I cannot answer your question. I’m hoping someone else can.

[martian622]

They can only use genuine US Minted gold and silver currency. Regardless of face value, the goods and services a gold $50 piece will buy will equal the value of the ounce of gold.

[seowulf]

What this means in a practical sense is that in Utah you can exchange paper dollars for precious metals without paying a state income tax.

I don’t know if Utah has a sales tax on precious metals or not.

It will be more like Washington state has been for decades, where there is no state income tax and precious metals are sales tax exempt.

[StarfireIV]

If you can’t afford gold, buy silver.

[wolfcreek]

Wonder if when you go to buy an item, the realtor only gives you 3/4 the value of the gold.

(which is what gold buyers do)

[wolfcreek]

Wonder if when you go to buy an item, the Realtors only gives you 3/4 the value of the gold.

(which is what gold buyers do)