Silver as a Legal Tender

Tennessee SB0350 seeks exemption from sales tax on gold and silver coins. With ever-increasing geopolitical tensions, gold and silver are becoming increasingly valuable, especially for investors who wish to use these precious metals as a hedge against uncertainty. To protect yourself from the increasingly uncertain political and economic climate and add real money to your wallet, call us at 800-831-0007 or send us an email. As a result of the conversion of gold and silver into foreign currency, capital gains taxes on the sale of gold and silver would most likely be abolished in states that accept gold and silver as legal tender, as the currency is not subject to tax. States like Idaho and Arizona have already passed laws abolishing these taxes. If all 50 states started using gold and silver instead of Federal Reserve notes, the Fed would no longer have control of the country`s money. So far, seven states already have U.S. gold and silver coins as currency, with Arizona being added to the list just recently (August 9). Four other states have attempted to reintroduce gold and silver as legal tender or are in the process of doing so. Below is a chart showing the seven states that reintroduced gold and silver as money (light blue) and the four states that tried to do so (dark blue). Senate Bill 98, which proposes an income tax deduction for capital gains from the exchange of gold and silver, is under discussion in Missouri, although a similar bill failed in 2013 and 2014.

H.B. 682 The bill passed with great support, making Louisiana the second U.S. state to exempt sales tax on gold and silver. The bill was later signed into law by Governor Bobby Jindal. Over time, as state residents use both Federal Reserve notes and silver and gold coins, the fact that coins retain their value more than Federal Reserve notes will lead to an “inverted Gresham`s Law” effect, where good money (gold and silver coins) drives out bad money (Federal Reserve banknotes). Early versions of silver certificates were larger than their later counterparts, which were similar in dimensions to modern American paper money in circulation today. The larger certificates had denominations ranging from $1 to $1,000, while the smaller ones were mostly available in lower denominations. These certificates included portraits of notable Americans, including George Washington, Abraham Lincoln, and Ulysses Grant. For thousands of years, gold and silver have been used as money. Since President Franklin Delano Roosevelt freed the United States from the gold standard in 1933, the value of the U.S. dollar has been based on trust in government.

Today, due to the weakening of the dollar, we are slowly beginning to see states once again accepting gold and silver as currencies, as stipulated in the Constitution. However, there are many other benefits associated with owning legal tender coins. Utah accepted gold and silver as currency on March 10, 2011 and became the first state in 80 years to make coins legal tender. The law paved the way for other U.S. states to pursue similar laws. “If our money was backed by gold and silver, people wouldn`t just be able to sit in a fancy building and press a button to create new currency. They should trade honestly with another party who already has gold in their possession. -Ron Paul Some silver certificates are worth much more than their face value. The exact value of a particular silver certificate depends on several factors, including its condition and rarity.

For many people, the appeal of these certificates lies in their collectability and the nostalgic meaning they represent. A national urge to return to the bimetallic norm gripped the nation, and many Americans placed an almost mystical belief in money`s ability to solve their economic woes. The leader in the fight to remonetize money was Congressman Richard Bland of Missouri. After working in the mines and witnessing the struggles of small farmers, Bland became an ardent supporter of the cause of money, earning him the nickname “Silver Dick.” The Coinage Act of 1873 abolished the right of individuals to convert money into silver coins. Western mining companies and bankers wanted the return of both metal systems. In the late 1880s, many Americans opposed a fixed supply of paper money because they feared that the money supply would run out. If you want to add these stable assets to your portfolio, we now offer 1-ounce Gold American Eagles for as little as Spot + $39.99 per ounce* and 1-ounce Silver American Eagles for as low as Spot + $2.49 per ounce*. The government argued that payments should be considered largely on the basis of intrinsic value, but lawyers acting on behalf of defendants could cite precedents where the law made no legal distinction between the face value of investment coins and the face value of paper money. In the end, the defendants were acquitted and the case turned out to be an extremely important legal step, or at least it would have been if it had not apparently been swept under the carpet. In Oklahoma, on June 4, 2014, Governor Mary Fallin signed a law, Senate Bill 862, which recognizes gold and silver coins minted in the United States as legal tender and exempts them from taxes.

To date, eleven U.S. states have recognized U.S. gold and silver. Bullion coins as currency or are about to accept both metals as legal tender. This change is rooted in Article 1, Section 10 of the United States Constitution, which states: “No state shall […] make anything other than gold and silver coins a means of paying down debt. Utah accepted gold and silver as money in 2011, when it became the first state in 80 years to make gold and silver legal. In January of this year, Representative Ken Ivory (R-Utah) introduced a bill that would amend Utah`s legal tender law, further promoting gold and silver as money. Ivory states that “the security of public transactions is the ultimate goal” of the new law.