Out of fear of the US economy seeing another major downswing, individual states have been taking steps to ensure the wealth of its citizens remains protected. We may still be a long way off in terms of returning to the gold standard, but this is certainly a step in that direction.
The Story Behind Utah
In March of 2011 Governor Gary Herbert signed a bill that allows US mint silver and gold coins as an acceptable form of payment. Keep in mind, under the constitution states are not allowed to print their own form of currency but it does allow, “gold and silver coin a tender in payment of debts.”
The real brilliance behind this law is that coins like the American Silver and Gold Eagles are treated just like dollars, thus eliminating the capital gains tax on gold and silver bullion in the form of these particular coins.
To take this one step further, the Utah Gold & Silver Depository was established. Naturally, it is not very practical to carry around gold and silver coins as you go about your day. The UGSD allows for individuals to deposit their coins and in return provides debit cards to those who would rather handle their transactions this way.
More States to Come?
It seems this is not an isolated event. 13 additional states such as Georgia, Washington, and Colorado have similar aspirations. Soon, we may see many states following in Utah’s footsteps to also help ensure the safety of its citizens’ wealth.
Start Investing Today
With so many states vying for less stringent laws surrounding gold and silver, it’s hard not to take notice. When a governments own states are worried about the state of the economy, shouldn’t you be as well?
Here we see yet another reason to own hard, physical gold and silver. The power of the U.S. dollar has been on shaky ground since 2008 and its future is still unclear. Gold and silver, on the other hand, are here to stay and have proven to be a much more stable than the paper dollar bills in your wallet.
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American Bullion specializes in adding gold and silver to retirement accounts. If you have a question or would like to know more about your investment options, please call American Bullion at 1-800-326-9598 to speak with a precious metals specialist.