Can silver be used as currency?

The silver standard is a monetary system in which the national currency is backed by physical silver. It involves foreign exchange holders being able to exchange their national currency for fixed amounts of silver. Check out our FAQs for answers to the most commonly asked questions, including reviews of the Best Gold IRA Companies Reviews. It's a searchable knowledge base with common questions and answers, as well as reviews of the best gold IRA companies.

Asset Strategies International is an industry-leading full-service tangible asset dealer specializing in precious metals, foreign currencies and rare tangible assets. Although it's too early to say that this is a radical wave of reforms, there are some states that have taken former congressman Ron Paul's message on solid money very seriously. So far, seven states have already re-established gold and silver in the U.S. UU. Coins as currency, and Arizona was recently added (August) to the list.

Four other states have tried to reestablish gold and silver as legal tender or are currently in the process. Below is a graph showing the seven states that have reintroduced gold and silver as currency (light blue) and the four states that have tried (dark blue). In addition, the state governments of Utah and Texas are already organizing bullion deposits for private investors to secure their precious metal stocks. This bill, known as Bill 224 (HB-22) of the House of Representatives, would change state law to expand state gold deposits and allow research into sound monetary policies.

Zero Hedge explains: “Specifically, the HB224 would authorize the investment of public funds in legal tender for species in a commercial species repository. Basically, the HB-224 would allow Utah to hold funds in gold and silver, in addition to Federal Reserve notes. As a result of the exchange of gold and silver to currency, capital gains taxes on sales of gold and silver will most likely be eliminated in states that accept gold and silver as legal tender, since the currency is not subject to taxation. States such as Idaho and Arizona have already passed bills that eliminate these taxes.

If all 50 states started using gold and silver instead of Federal Reserve notes, the Fed would no longer have control over the nation's money. As this happens, a cascade of events may begin to take place, such as the flow of real wealth into the state treasury, the influx of out-of-state banking businesses as people from other states fulfill their desire to bank with solid money and, finally, a protest against the use of Federal Reserve notes for any transaction. How far this movement will go remains to be seen, but it is encouraging to see states taking positive steps towards a strong currency. The good news is that you don't need to be from one of these states to build your own private gold and silver deposit and a solid money bank.

And, given the recent movement in the precious metals market, now seems like the perfect time to take that step. Combine that with a weakening of the U.S. The dollar, a nuclear chicken between the United States and the United States. And North Korea, and the start of the traditional fall season of buying precious metals, and you know what you should do.

If you ask the boy on the street to define “money”, 99 out of 100 will probably answer “paper money”, USA. Paper money and base metal coins are just government-issued currencies, a form of debt. The silver standard was adopted again and codified in 1914 by the newly created republic, and one yuan was still equal to 0.72 tael of 900 fineness silver. In the long term, the price of silver will be determined by industrial demand and metal mining production.

Since the Agricultural Adjustment Act of 1933 granted the president the right to issue silver certificates, Kennedy issued Executive Order 11110 to delegate that authority to the Secretary of the Treasury during the transition. The abandonment of the silver standard by Germany put greater pressure on other countries to switch to the gold standard. The great tax reform of the statesman Zhang Juzheng in 1581 (the ninth year of Emperor Wanli) simplified taxes and required that all taxes and crows be paid in silver. The second change is the industrial use of silver, which practically did not exist more than a hundred years ago.

In 1861, the United States government suspended payments in gold and silver, effectively ending attempts to establish a standard silver base for the dollar. One of the reasons people mention investing in silver is that this precious metal could, according to some, become a monetary asset again at some point in the future. Sometime before 2500 BC. C., the silver shekel became their standard currency, with tablets that recorded the price of wood, cereals, wages, slaves, etc.

Therefore, daily economic activities were carried out with silver as the standard of value and with silver as a medium of exchange for local, national and even regional trade. In October 1934, the National Government of the Republic of China increased the silver-based export tariff and adjusted it with the so-called equalization tax, so the tariff was based on foreign currencies. An even greater increase in the price of silver after World War I caused the Royal Mint in London to reduce the silver content of British pound coins. Meanwhile, silver was widely available through foreign trade with the Portuguese (through Macao) and the Spanish (through the Manila galleons) in the early 16th century.

After the fall in the value of silver in the late 1920s and early 1930s, the Pahlavi government suffered a serious monetary crisis. So why have gold and silver survived the test of time as a true form of money? And why have gold and silver been universally accepted as money throughout recorded time?. .