However, gold is still a currency and its price fluctuates in relation to other forms of exchange. This also applies to silver, which has even more industrial applications and accounts for half of the annual demand for that metal. If you're looking for the best gold IRA companies reviews, check out our FAQs for answers to the most commonly asked questions. It's a searchable knowledge base with common questions and answers. 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. Silver & Gold, in fact, has the best historical record as money. These two precious monetary metals, by their inherent nature, are the most excellent money of human beings.
For example, the idea that metal is the basis of real money is based on this rule of law according to which paper money is backed by gold or foreign currency. After the Fowler report, India adopted the gold exchange rate standard in 1898, setting the value of the rupee at exactly one shilling and four pence (1 shilling %3D 4 days) of the British pound. During the Song Dynasty, for the first time in history, the government became the only issuer of paper money after 1024, but molten coins and silver ingots continued to be used as a medium of exchange. Starting in 1871, the value of silver depreciated relative to gold, due to the fall in demand for silver in European and North American mints, as those countries switched to the gold standard.
After the fall in the value of silver in the late 1920s and early 1930s, the Pahlavi government suffered a serious monetary crisis. However, the fixed rate between gold and silver overvalued silver relative to the demand for gold to trade or borrow from England. The abandonment of the silver standard by Germany put greater pressure on other countries to switch to the gold standard. Since this occurred around the same time that the Spanish discovered silver in Cerro Rico, in Potosí, the value of silver in the rupee maintained a stable relationship with gold until the early 1870s.
So even the smallest gold coin, that of a nobleman's quarter of 20 dykes (with 1.7 g of fine gold), was of little use for domestic trade. The Department of the Treasury was rehabilitated to issue paper money redeemable in silver dollars and ingots, thus divorcing the national economy from bimetallism and leaving it on the silver standard, although international agreements were still in gold. 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. As banknotes devalued or silver ceased to circulate as a store of value or a depression occurred, governments that required the species as payment exhausted the economy's circulating environment.
What both of them had in common was a high regard for gold and silver and they used them to make some of the most important tangible objects of their lives (religious items used in rituals, jewelry to adorn, coins for trade). Humanity is relearning the historical lessons that gold is money par excellence and that silver is humanity's most reliable money for everyday trade. 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?. Gold and silver became de facto money around 600 BC.
C. when Lydian coins were minted as deposits of value used for trade. . .