With each passing month, the momentum in favor of reviving the use of gold and silver as money seems to build. An idea that has largely been panned as an untenable, fringe position when espoused by former U.S. Representative and presidential candidate Ron Paul is now being enacted by one state legislature after another.
From Tennessee to Idaho, to Virginia to Arizona, state after state is adopting new rules for how precious metals are treated by the law. Utah was likely the first to do several years ago. This type of reform has largely taken two different forms: 1) making gold and silver acceptable as legal tender, as was the case for the vast majority of American history; and 2) eliminating burdensome and unjustified sales taxes on exchanges of gold and silver.
Join the Club
Kansas’s state legislature is the latest to introduce a bill that emphasized the role of gold and silver as “sound money.”
Essentially, the point of these kinds of laws is to re-monetize gold and silver as legal currency. Right now, the metals are treated like any other commodity under federal law (and the laws of most states). Yet, if these metals are just like any other resource, why are there such significant regulations and restrictions placed upon them?
This contradiction or paradox would be cleared up by simply returning the precious metals to their original place as a uniquely well-suited form of money. By giving the public the option to use precious metals in everyday commerce, the federal government’s monopoly over legal tender money (through the Fed) would face a strong challenge. More competition, in this case, would be a welcome change.
The opinions and forecasts herein are provided solely for informational purposes, and should not be used or construed as an offer, solicitation, or recommendation to buy or sell any product.