13 States Considering Allowing Precious Metals as Legal Tender

July 23, 2012 – Apparently the governor of Utah instigated a popular movement when he signed a bill last March making gold and silver bullion legal tender in the state.

The Utah Sound Money Act is seen by many as a strike against the fiat monetary system that places faith and value in paper currency. Under the US Constitution, states cannot create their own currency but they are allowed to use gold bullion and silver bullion as a legal tender.

According to the Act, lawmakers in Utah studied history and found that money printing and increases in debt inevitably led to a destruction of the currency and a subsequent depression that negatively affected the lives of the citizens.

Of course, money printing and the massive debts accumulated by the Federal government fit into this pattern perfectly and form the basis for the lawmaker’s reasoning behind the Utah Sound Money Act. Under the Act, gold bullion and silver bullion are considered equivalent of paper currency in the state of Utah. While paper currencies continued to lose value in the current debt system, the value of gold and silver would remain intact, making gold and silver, not paper, the most fiscally sound currency available.

The Utah Sound Money Act states that gold bullion and silver bullion coins issued by the US Mint can be used as payment with any merchant in the State of Utah for the purchase of goods and services.

As a part of the Act, the Utah Gold & Silver Depository was created. Citizens can deposit their gold and silver bullion coins in the Depository instead of carrying them around markets in order to make purchases. Depositors receive a debit card in order to make transactions. The Depository functions much like a bank. The closing prices of gold and silver in London are used to determine the rates of exchange on the debit card.

Missouri and South Carolina are closest to enacting similar legislation in 2012, both including the creation of a gold and silver bullion depository. Both states are acting under the idea of sound money in order to bring forth the legislation.

Several other states, including Montana, Colorado, Idaho, Indiana, New Hampshire, Georgia, Washington, Minnesota, Tennessee, and Virginia are all considering legislation making gold and silver bullion legal tender.

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