Utah has gone for gold — quite literally.
Last week the state became the first to pass legislation legalizing gold and silver as forms of currency. The law also exempts the coins — which are typically considered an investment -- from capital gains taxes.
This may come as welcomed news for gold bugs: gold has been on a tear for decades -- currently hovering above $1500 an ounce -- and has held up in the midst of tumbling silver, oil, and now the equity market. (See: Same Story, Different Day: European Debt Crisis Spurs Global Selloff)
But, as you can imagine, Aaron and Henry are quite skeptical. "Are we going to start walking around with huge bags of coins," Aaron quips. "Is that the future of America?"
Perhaps, but that is not necessarily the intention of the Utah State Representative Brad Galvez who introduced the bill in protest of the Fed's monetary policy. "We're too far down the road to go back to the gold standard," Galvez said. "This will move us toward an alternative currency."
Utah is not alone in this desire for an alternative to the weakening U.S. dollar. There are about nine other states considering similar laws, including North Carolina and Idaho.
As the law stands, Utah retailers are not required to accept this new form of currency. Probably a good thing since placing a real-time value on gold coins would be particularly tricky, as Aaron and Henry also note.
Tell us what you think! Would you like to see your state follow suit?
- capital gains taxes
- monetary policy
- gold standard
- alternative currency
- North Carolina