As concerns about inflation and the stability of the US dollar continue to grow, a growing number of states are taking steps to recognize gold and silver as legal tender. 23 states have introduced legislation that would allow citizens to use precious metals to pay for goods and services, according to investment news website Invezz, here.
“Proponents of the legislation argue that gold and silver are more stable forms of currency, as their value is not subject to the same fluctuations as fiat currency,” writes Shivam Kaushik in the Invezz article.
This sentiment is echoed by many in the precious metals industry, who see the current economic climate as a sign that gold and silver could become increasingly important as alternative currencies.
Several states introduce legislation, significant for the US dollar
The states that have introduced the legislation include Arizona, Wyoming, and Texas, all of which have taken slightly different approaches to the issue. In Arizona, for example, the state Senate has passed a bill that would recognize gold and silver coins minted by the US government as legal tender, and would remove state capital gains taxes on the exchange of precious metals. In Wyoming, a similar bill has been introduced, which would also allow for the creation of a depository to hold precious metals for use in transactions. Texas has introduced legislation that would recognize gold and silver coins as legal tender and create a depository to allow citizens to store their precious metals in a secure facility.
The implications of this shift towards recognizing gold and silver as legal tender could be significant for the US dollar. As Kaushik notes, “The more US states that accept gold and silver as legal tender, the more support these precious metals will gain as an alternative currency.” If this trend continues, it could lead to a decreased reliance on the US dollar as the world’s reserve currency, and could impact the global economy in a number of ways.
Critics say it’s impractical, but miss the point
Some critics of the move towards recognizing gold and silver as legal tender argue that it is impractical and could lead to a number of issues. For example, using commodities as currency could make transactions more difficult, as the value of these metals fluctuates based on market conditions. In addition, it is unclear how the use of precious metals as currency would impact the broader economy.
Despite these criticisms, the trend towards recognizing gold and silver as legal tender appears to be growing. Shivam states that, “Only time will tell whether gold and silver will become a more widely recognized form of legal tender, but for now, it seems that a growing number of US states are taking steps towards recognizing precious metals as a legitimate form of currency.”
The potential implications of this shift in the way US states view currency are significant, and it remains to be seen whether other states will follow suit. However, for those in the precious metals industry, this trend is a sign that gold and silver may be poised for a resurgence as alternative currencies. As Robert Wiedemer, a financial commentator and author, notes in the Invezz article, “As fiat currency continues to lose value, gold and silver will become increasingly important as a store of value and a medium of exchange.”
In the end, the move towards recognizing gold and silver as legal tender in US states could have far-reaching consequences. Whether it leads to a shift away from the US dollar as the world’s reserve currency, or simply serves as a way for citizens to protect themselves against inflation, it is clear that the trend towards using precious metals as an alternative to fiat currency is only gaining momentum.
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