It’s not law yet, but the Utah House voted to recognize both gold and silver as legal tender.
In other words, you can buy and sell goods and services with gold and silver, not just with federally issued dollar coins and bank notes.
Why has this step been taken? Simply because a lot of people are losing faith in the dollar, and the big government behind it.
“People sense that in the era of quantitative easing and zero interest rates, something has gone haywire with our monetary policy,” said Jeffrey Bell, policy director for the Washington-based American Principles in Action, which helped shape the bill. “If one state recognizes gold as a valid currency, I think it would embolden people not just in other states but in Washington.”
Before you get too excited, keep in mind that the face value of an American Gold Eagle coin is only $50. But the value of an ounce of pure gold is around $1,400. So it makes no sense at all to use a gold coin to buy $50 worth of groceries.
But that’s not really the point here.
The point is that the Utah vote recognized and highlighted a growing concern about the real value of the US dollar.
The value of the dollar has been falling steadily, against almost all foreign currencies. It has even been falling at a time of massive unrest in the Middle East and North Africa.
Historically, people, institutions and foreign governments have rushed to the dollar at times of global unrest. The dollar has always been seen as a safe haven during unsettled times.
But that isn’t what is happening now. The dollar continues to fall.
That why the Utah House, and millions of American individuals, are looking at gold as an alternative and more reliable unit of money.
Will we come to a time when gold is truly a more reliable measure of wealth than the dollar? A couple of years ago, I would have said no. But right now, it’s looking more and more likely.
If you don’t yet own any gold, you may want to start buying some now.
Further reading…