Another
State Declares Gold and Silver Coins Legal Tender
The U.S. Constitution (Article I, Section 10) provides for individual states
to recognize gold and silver coins as payment for all debts. Last Wednesday,
Oklahoma joined Louisiana, Texas, and Utah in exercising their Constitutional
right to grant U.S. minted gold and silver coins legal tender status.
Bartering with gold or silver coins is legal in all states. However, states
with legal tender recognition make it much easier for citizens to receive
payments or pay bills in gold or silver. Legal tender status means no state or
local sales or income taxes apply to transactions involving gold and silver
American Eagles (and certain other U.S. coins).
At the federal level, capital gains taxes would still apply on coins whose
value has appreciated in dollar terms.
What’s needed to allow gold and silver to compete on a level playing
field with the U.S. fiat dollar is what Oklahoma has done at the federal level.
Until then, we as individuals can help undermine the dollar’s undeserved
and highly abused monopoly status by pressuring our state legislatures to declare
gold and silver legal tender.
More directly, we can take advantage of opportunities to use precious metals
as money in barter transactions. It is perfectly legal to do so regardless of
where you live or what type of bullion product you use.
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