gold and silver for money in Colorado

Kip

DENVER (CBS4) – Some Colorado lawmakers want people to be able to use gold and silver coins as currency.

A bill before the state Senate would legalize the coins. Utah already has a similar measure in place and 12 other states are considering such plans.

Supporters are concerned about the strength of the U.S. dollar. The sponsors say a debt crisis and more money being printed can lead to the dollar’s decline. They cite other countries, such as Zimbabwe, who has a $100 trillion bill worth about 40 cents in the U.S. They say using gold and silver can help ease some fears.

“Over history just about every country in the world that has had a serious debt crisis has intentionally inflated their currency,” said Sen. Kent Lambert, R-El Paso County.

Lambert says that can easily happen in this country, so he’s sponsoring a bill that would allow people to use gold and silver coins like cash.

“Coins that are minted by the U.S. government should be something that we can use in trade,” he said.

Gold and silver have been traded for 5,000 years, but after World War I they were banned as currency in the U.S.

Gold dealer Charlie Rockney says he sees more and more people acquiring precious metals as investments in case the value of the U.S. dollar falls.

“The value of their currency has dropped so much. It can happen here. That’s why they’re looking at gold and silver that will hold its value. It’s always been traded,” Rockney said.

To use gold and silver coins today they have to be converted to paper dollars. So a $20 gold coin in the 1800s is still legally worth $20, even though its real value may be a lot more.

On Friday gold was trading at more than $1,700 an ounce.

Lambert admits if the bill passes people won’t be walking around with bags of gold coins, but it’s an alternative for them to feel more secure with their money.

The bill has already cleared the Senate Finance Committee and needs a vote from the full chamber.

Spooly

I think laws like this will make it "harder" for the Federal Government to confiscate gold & silver in the future. If confiscation did take place the States could take it to the Supreme Court. I remember the founding fathers saying only Gold and Silver is money.

The U.S. Government ordered the the U.S. Mint in 1986 to starting selling Gold and Silver bullion to the public as an investment. Huge Gold and Silver ETF's would fight with big bucks to stop it in court also.

DrBuster

Would love to see all these states doing this help reel in DC and the fed a bit.

gecko109

If im not mistaken, its already "legal" to use gold or silver coin/bullion as payment to settle private transactions. I dont think there is any law on the books that declares the USD as the only legal form of payment. If I negotiate with a painter to paint my living room for 1/4 oz of gold, that is an agreement between private parties, and the government has no say in how we settle. The same would apply if I went to Sears to buy a new stove.

Why is a law.....at the state level.....needed for something that is already perfectly legal?

derryb

meaningless unless all coins contain gold and silver.

strictly a grandstanding political move for attention. These lawmakers should be concerned with more important issues that can make a difference.

For those thinking confiscation: Won't happen. gold was confiscated before because it backed currency. Now that it doesn't, the gov doesn't need it to create more currency. Ink and paper confiscation is more likely.

Anybody watching PMs today.

Spooly

dberry, You don't think the Government will have to move back to some type of Gold standard?

derryb

<< <i>dberry, You don't think the Government will have to move back to some type of Gold standard? >>


No. The only thing they have to do is keep creating new money. It's very easy now that they don't have a gold standard.

greatnortherncoin

how would that plan work ? take a sivler dime to the gas station to buy something

Baley

.. and if you don't have a silver dime, maybe the gas station will barter for your can of tuna or bic lighter.

"hey, can anyone make change for a Kruggerand?"

greatnortherncoin

so the states would give you 10 cents for a silver dime ?

derryb

The only advantage to a gold/silver standard is that hopefully it will contol the amount of money that can be issued, thus reducing devaluation of the money. Rome proved that the standard doesn't work when they realized all they had to do was continuing reducing the gold/silver content of each coin.