Tuesday, May 24, 2011
Photo: AP)
Frustrated over the monetary policies of the Federal Reserve and the devaluing of the U.S. dollar, lawmakers in Utah have legalized the use of gold and silver as currency, making the state the first in the country to move in this direction.
But using the precious metals to buy things could be difficult, given that most businesses are not set up to handle gold and silver coins.
Entrepreneur Craig Franco is seeking to take advantage of the situation by creating his Utah Gold and Silver Depository, in which people would turn over their coins in exchange for a debit-like card that could be used to make purchases.
At the moment, a one-ounce gold coin would be worth $50. An ounce of per gold is currently going for $1,500 on the stock market. Utah’s law exempts the sale of gold and silver coins from state capital gains taxes.
A dozen other states are considering the idea of expanding currency options to include gold and silver.
U.S. currency used to be backed by gold, but in 1971 President Richard Nixon abandoned the gold standard.
-Noel Brinkerhoff
Gold, Silver Coins Now to Be Legal Currency in Utah (by Josh Loftin, Associated Press)
Utah House Stamps Gold, Silver as Legal Tender (by Lee Davidson, Salt Lake Tribune)
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