Utah legalizing gold as form of currency

Utah Goes for Gold: State Puts Metal Coins on Par with the Dollar (Well, Almost)

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.

http://finance.yahoo.com/blogs/daily-ticker/utah-goes-gold-state-puts-metal-coins-par-165924763.html?sec=topStories&pos=3&asset=&ccode=

The first step in moving away from the dollar...
States now want an alternative to trading in dollars!
There are about nine other states considering similar laws, including North Carolina and Idaho.

Gold should be exempt from all capital gain taxes. (non-collectibles) You should be able to preserve your savings current value in the event of the government directed falling dollar and inflation. There is really no gain with gold, you are just staying even. Maybe you should be able to deduct the loss of your collapsing dollars every year.

Not a bad idea to own some gold coins just in case. You may need them someday to pay your Doc!

Yep- this could be a move for states to have a stable currency available after our dollar is practically worthless.

our currency would be in better shape if we had never gone off the gold standard.

archer wrote: our currency would be in better shape if we had never gone off the gold standard.

+1 on that.

I have a few Silver Certificate 1$ bills.

lol If dollars are worthless, please send me yours! Not exactly seeing dollar bills in the gutters like pennies here.

And US gold coins can be used as currency, but that $20 gold piece is worth almost $1500.

The problem with going back on a gold standard is that you can cheat just like the fiat money. Greenspan wants more money supply? All of a sudden, your gold ounce is worth $3000 paper dollars. The US can print up that much more based on their reserves.

And if they weren't legally able to devalue the currency, then every year you would take a pay cut since there are going to be more Americans born every year than there is gold for them.
Would make old people's stories more bizarre, remember when those Hershey bars cost a $1? Now they are a dime!

So what does legal currency actually mean? If I want to trade someone two $1500 gold coins for a used car is that legal in Colorado? Is it barter?

Does legal currency only apply to business transactions?

In a high inflation environment- the value of the dollar could fall every day.

In Argentina's hyperinflation days- people used US dollars as a stable currency.

Argentina went through steady inflation from 1975-1991. At the beginning of 1975, the highest denomination was 1,000 pesos. In late 1976, the highest denomination was 5,000 pesos. In early 1979, the highest denomination was 10,000 pesos. By the end of 1981, the highest denomination was 1,000,000 pesos. In the 1983 currency reform, 1 Peso argentino was exchanged for 10,000 pesos. In the 1985 currency reform, 1 austral was exchanged for 1,000 pesos argentinos. In the 1992 currency reform, 1 new peso was exchanged for 10,000 australes. The overall impact of hyperinflation: 1 (1992) peso = 100,000,000,000 pre-1983 pesos.

Do you want to be holding dollars if the dollar is worth 50% less in one month? That's what happened in Argentina.

Congress passed a law making $100 the highest currency bill permitted as legal tender. Imagine if hyperinflation happens, it will be like the Wiemar all over again, a wheelbarrow of $100's left in the street to buy some bread.
Individual toilet sheets worth more than $1 bills. Lighting cigars with $20 bills.

we will be like England in the 70's, No country will want our currency and we will have rolling blackouts to help conserve electricity.

Now back to GOLD...