Recently lawmakers in Idaho and Arizona have passed bills removing Capital Gains Taxes from transactions involving gold and silver bullion.
Normally, when individuals sell gold or silver they must pay capital gains on any increase of the value of their precious metal investments.
However, many consider precious metals, especially gold and silver, to be a form of currency, not an investment in the traditional sense.
It seems that lawmakers in Idaho and Arizona have now realized that their citizens shouldn’t have to pay taxes on their precious metal holdings simply because of the Federal Reserve’s questionable dollar related philosophies.
Gold & Silver Moving Toward Role As Currency
So now we have two states in the last few weeks that have passed bills removing capital gains tax on gold and silver. The Arizona and Idaho legislation is a noteworthy step towards the reintroduction of precious metals in their rightful role as both real money and as a high quality storehouse of value.In 2011 the state of Utah was the first state in 80 years to pass a bill that made gold and silver legal tender once again. Thus, citizens in Utah are legally allowed to use silver and gold to pay either taxes or for goods and services if both parties agree.
But what’s even more interesting is that Utah just recently introduced a bill for a State Gold Repository. This bill would build on the state’s Legal Tender Act, creating a foundation for further action to encourage the use of gold and silver as money.
This would be still another step toward breaking the Federal Reserve’s monopoly on money. The legislation would add several key provisions to the state law designed to encourage the use of gold and silver as legal tender.
Passage would set the stage for the expansion of gold repositories in the state and authorize further study on numerous sound money policies. Specifically, this bill authorizes the investment of public funds in specie (coins with precious metal content) legal tender held in a commercial specie repository.
Demand For Gold & Silver Will Increase When Dollar Falls
As I write this, we now have three states encouraging the use of gold and silver as real money. Not only does this legislation help to reintroduce gold and silver as sound money, it also sets the stage for new depositories across the states to house citizens’ precious metal holdings.
Granted, there are only three states onboard with plans equating precious metals with currency. However, I believe that this is just the start for numerous other states to follow suit. The dollar will eventually tumble due to massive monetary printing and staggering debt.
Americans are hopefully preparing for what may be on the horizon. Precious Metals are currently being valued in a manipulated highly leveraged gold and silver paper trading market, a system that cannot last forever.
When the paper markets finally crack under the massive weight of debt and derivatives, there will be a mad rush of investors looking for gold and silver. The overall demand for tangible assets will lead to shorter supplies and higher prices for precious metals.