The United States has been off of the gold standard since 1971, and stopped using gold coins as currency in 1933 when President Roosevelt confiscated gold and made it illegal to own privately.  It looks as though one state in particular is looking for gold as a currency to make a comeback.

A vote was set for as early as Thursday for the Utah House on a bill that would allow the use of gold and silver coins issued by the Federal Government as currency within the state.  US dollars would still be used; gold and silver coins would only exist as an alternative (a back up plan).

If passed gold could be used to pay taxes and would be exempt them from state capital gains taxes.  If it passes the House it must then pass the Senate and the Governor before it would become law.

The original author of the bill, Larry Hilton said “There is enough uneasiness going on in the economy to trigger people to feel that, hey, having a little Plan B kind of a backup system is not a bad idea.”  Hilton’s efforts were praised by Congressman Ron Paul who is a long-time supporter of a new US gold standard.  In a letter he wrote to Hilton, Paul said “Efforts such as yours in states around the country highlight the importance of returning to sound money.”

Twelve other states have similar bills proposed and are still making their way through the legislative process.  Those in Utah believe that if passed it will send a message to Washington and other states that it is possible to return to a sound money system.

As the Fed continues to print money, gold and silver will continue to rise against the dollar.  Having the ability to use it as a currency will allow people to feel safer owning it.  It is a win win for citizens of the US.  It will allow us to vote no against the dollar and the Fed’s monetary policy which has been robbing people of their wealth through inflation for the last 98 years.

If this bill makes it into law look for it to spur an increase the public’s ownership of gold.

Advocates of the gold standard say that it limits money printing and inflation.  Critics say that it limits control and leaves the system vulnerable to financial shocks, but it seems as though financial shocks are still occurring in the face of no gold standard.