Worried states consider gold and silver exchanges to protect from Fed policy
FREE Catholic Classes
A dozen states are considering bills that would once again authorize the use of gold and silver coins as legal tender. The move comes as long-term confidence in the dollar erodes.
Highlights
Catholic Online (https://www.catholic.org)
4/9/2013 (1 decade ago)
Published in Business & Economics
Keywords: Gold, silver, bullion, investing, currency, fiat money, Fed, exchange, standard
SALT LAKE CITY, UT (Catholic Online) - Utah has already authorized bullion as currency, and Arizona is about to follow suit. Other states, mostly conservative, are breaking away from absolute dependence on fiat currency.
There's plenty of reason to worry about the dollar's stability. Unusual moves by the Fed to stabilize the economy combines with moves by other countries such as China, to unseat the dollar as the world's reserve currency, are undermining confidence.
In Texas, Gov. Rick Perry has given his support to a bill that would transfer the state's gold reserves from a bank in New York back to a repository in Texas itself. The bill would establish the Texas Bullion Depository and would store about $1 billion in gold bars. It would also accept deposits from the public.
There is also a growing call to return to the gold standard, linking the dollar's value to bullion.
Allowing consumers to convert their currency to bullion that will not lose value as a result of questionable government policies would build confidence by giving people control over their money.
Further state legislation is being considered in Utah that would eliminate capital gains and state taxes on bullion will make silver and gold a more attractive option for investors.
Still, there are no plans to resurrect gold and silver coins for the purpose of buying groceries or gas. However, people are trying. Some Utah residents have asked to pay their taxes in gold or silver. Direct payments to the state would eliminate intermediaries who convert bullion to fiat currency in exchange for a steep percentage of its value.
The state has formed a task force to consider how to accept the bullion for payments, however the fluctuating value of gold and silver makes a plan challenging to devise.
Ultimately, people are concerned that dollars backed by nothing but federal edict are too flimsy as a currency and would feel safer being allowed to directly invest in bullion, which is a hard currency and will never decline in value below a reasonable point. Bullion also acts as a hedge against inflation, by automatically increasing in value as inflation accelerates.
For now, it seems unlikely that gold and silver will return to circulation anytime soon. However, the movement is certainly afoot and wise investors should take note.
---
'Help Give every Student and Teacher FREE resources for a world-class Moral Catholic Education'
Copyright 2021 - Distributed by Catholic Online
Join the Movement
When you sign up below, you don't just join an email list - you're joining an entire movement for Free world class Catholic education.
-
Mysteries of the Rosary
-
St. Faustina Kowalska
-
Litany of the Blessed Virgin Mary
-
Saint of the Day for Wednesday, Oct 4th, 2023
-
Popular Saints
-
St. Francis of Assisi
-
Bible
-
Female / Women Saints
-
7 Morning Prayers you need to get your day started with God
-
Litany of the Blessed Virgin Mary
Daily Catholic
- Daily Readings for Monday, December 23, 2024
- St. John of Kanty: Saint of the Day for Monday, December 23, 2024
- Christmas Prayer: Prayer of the Day for Monday, December 23, 2024
- Daily Readings for Sunday, December 22, 2024
- St. Chaeromon: Saint of the Day for Sunday, December 22, 2024
- Advent Prayer #2: Prayer of the Day for Sunday, December 22, 2024
Copyright 2024 Catholic Online. All materials contained on this site, whether written, audible or visual are the exclusive property of Catholic Online and are protected under U.S. and International copyright laws, © Copyright 2024 Catholic Online. Any unauthorized use, without prior written consent of Catholic Online is strictly forbidden and prohibited.
Catholic Online is a Project of Your Catholic Voice Foundation, a Not-for-Profit Corporation. Your Catholic Voice Foundation has been granted a recognition of tax exemption under Section 501(c)(3) of the Internal Revenue Code. Federal Tax Identification Number: 81-0596847. Your gift is tax-deductible as allowed by law.