Arizona Set To Use Gold & Silver As Currency

Tyler Durden's picture

From GoldCore

Arizona Set To Use Gold & Silver As Currency

Today’s AM fix was USD 1,425.00, EUR 1,092.54 and GBP 935.04 per ounce. 
Friday’s AM fix was USD 1,414.00, EUR 1,080.46 and GBP 920.63 per ounce.


Cross Currency Table – (Bloomberg)

Gold climbed $12.90 or 0.93% on Friday to $1,400.90/oz and silver finished up 0.04%. Gold and silver both traded down for the week at 5.86% and 11.39%.

The state of Arizona may become the second state to use gold and silver coins as legal tender. 

Last week, Arizona lawmakers passed a bill that makes precious metals legal tender. Arizona is the second state after Utah to allow gold coins created by the U.S. Mint and private mints to be used as currency. More than a dozen states have legislature underway to pass similar measures. 

The move was launched by people who fear the Federal Reserve is not tackling the federal deficit and is thus debasing and devaluing the dollar. Some even fear, that if the Fed continues on the existing path it could lead to hyperinflation.

Miles Lester, who represents a group called Arizona Constitutional Advocates, said during a recent public hearing on legal-tender legislation that "the dollar is on its way out. It's not a matter of if; it's a matter of when."

The upcoming U.S. FOMC meeting next week is April 30th and May 1st and will be closely watched by investors.

Supporters of the legislation look forward to a day when citizens can make purchases from debit cards linked to gold depositories.


Gold in USD, 1 Month, by 30 minutes – (Bloomberg)

Opponents point to the volatility of gold and silver as currency after the fall in price that occurred last week. However proponents point out that the fall in gold prices last week was due to the speculative raid of Wall Street banks who the Federal Reserve is supporting and works closely with. 

Using gold and silver as currency would protect people from inflation, currency debasement, predatory banks and an increasingly volatile and vulnerable financial system. 

Utah has had the law on the books for the past 2 years and is working on a system for using the precious metals as currency.


Gold in Euros, 1 Month, by 30 minutes – (Bloomberg)

The Arizona Senate Bill 1439 would allow the holder of gold or silver coins or bullion to pay a debt.  

However, the coins must be issued by the U.S. government or approved by a court, like an American Eagle Coin. Oddly the government does not require that persons or business must use or accept gold or silver as legal tender in contravention of the U.S. Constitution. 

The sponsor of the bill, Republican Sen. Chester Crandell, would need a final state Senate vote after approval by the House, and if passed the law would not take effect until 2014.

Crandell said, "The whole thing came from constituents".


Gold in British Pounds, 1 Month, by 30 minutes – (Bloomberg)

The debate on whether gold and silver should be used as an alternative currency will continue and deepen as people realise how fiat currencies are set to be devalued in the coming months – potentially sharply.

A 5-10% allocation to physical bullion in your possession or in allocated accounts remains crucial to all wishing to protect their wealth from wealth confiscation. Whether that be by inflation or by pension, brokerage account or deposit confiscation – all of which have been seen in recent months and will be seen again.

NEWS

Yen Drops Toward 100 as European Stock Futures Advance With Gold - Bloomberg

Hedge Fund Gold Wagers Defy Worst Slump in 33 Years - Bloomberg

Arizona set to OK gold, silver currency – USA Today

Russia’s Main Exchange Plans To Develop Gold Bullion Market – Fox Business

World Gold Council: Speculators in futures markets caused gold price crash – Business Today 

COMMENTARY

10 Signs The Paper Gold Crash Unleashed An Unprecedented Demand For Physical Gold And Silver – The Economic Collapse

Swiss To Vote On Gold Repatriation - "Gold Is The Only Valuable Asset On The SNB's Balance Sheet" – Zero Hedge

Video: The Secret World Of Gold - GoldSeek

Gold price drop divides opinions, hits central banks  - Al Aribiya

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
GetZeeGold's picture

 

 

They even accept it at the border....only this time it's to get in.

 

Be sure to thank John McCain when you see him.

Harlequin001's picture

So now I can buy US gold coins at face value as currency and ship them worldwide without having to pay a 15-20% premium.

Cool...

Or, better still, buy them in the US at face value and ship them overseas for a 15-20% profit.

JUST AS GOOD...

Sudden Debt's picture

:)

Nop.

Look at the Canadian 20$ silver coins. They're worht 7$ in silver and have face of 20$.

anything lower and the Arizona silver would vaporize into thin air in a month.

What good would it make to make a silver and gold currency when the fiat can be traded so easy?

IT WON'T!!!

IT MEANS A DUO CURRENCY IN THE U.S.!!

compare it to Cyprus money in a account to money in a account in the rest of Europe. Officially they're the same buy nobody want the Cyprus kind.

 

 

Harlequin001's picture

Very true. For as long as there is a fiat currency and I mean ANY currency that is not linked to gold it will not work.

notbot's picture

Yawn.  

 

We still need to translate it to/from a fiat first. I get paid in USD. Let me know when people start paying employees directly in gold. 

hmmtellmemore's picture

Sudden Debt, the plan is to use US issued Eagles, not Arizona minted coins (from what I can tell).

samcontrol's picture

ship it overseas ,lol,

sure , there are no customs in other countries.

Harlequin001's picture

what has that got to do with it?

Are you expecting me to believe that you wouldn't take US coins and ship them overseas for a straight up 20%?

new game's picture

yup, a proud american with true conservative values...

Momauguin Joe's picture

Ultimately, Aztlán will return to circulating Silver Reales and Gold Escudos. Not a fucking thing those self-promoting huckster gringo douchebag's like "Sheriff Joe" can do about it either.

Reality's a bitch. Accept and prepare for it. 

LasVegasDave's picture

Sherrif Joe is an Arizona Hero. 

In a saner, more civilized age his face would be on a silver coin.

Extremism in the defense of liberty is not a vice

Overfed's picture

I could get behind Joe Arpaio a little easier if only the laws he so zealously enforces weren't such unconstitutional bullshit. Drug laws and such.

GetZeeGold's picture

 

 

Not so much conservative as he is progressive.

 

He still wears the R label proudly however. He's been there so long they don't dare kick him out.

Croesus's picture

Can't wait to see how the game of "Musical Gold" ends........

 

Interesting reading for bored Gold Bugs:

http://feketeresearch.com/upload/Who-said-the-hydra-would-take-it-lying-...

 

 

sotto's picture

Other states are mulling similar legistlation as well:  http://globalgoldnews.com/2013/04/08/more-u-s-states-pushing-for-bullion...

I think it's a good sign.

fonzannoon's picture

I love that goldcore advocates that you keep 5-10% of your money in money.

Croesus's picture

@ Fonzannoon:

 

When you get a chance, send me an email, please!:

Croesuszh @ gmail

falak pema's picture

After Colorado made hash legal tender Arizona goes PM crazy. 

Have gun will travel down great west road! 

All we need is New Mexico to join and we'll be at Tombstone.

new game's picture

onces per kilo at the border - who says you can't smoke it?

observer007's picture

Gold’s “Black Monday” still a mystery

 

One of the most important questions still remains a mystery: “Who in fact sold gold last week?” While physical purchasing of coins and bars clearly increased, we were pretty certain that the CFTC’s statistics, to be published on Friday evening, would reveal a massive reduction in net long positions held by speculative investors, which in turn would signal a “surrender” on the part of hedge funds and a process of market adjustment.

http://homment.com/Gold-black

See also:

Royal Canadian Mint reports exceptionally high demand for its gold and silver coins

espirit's picture

Who are these "CONstituents"?

Makes me wary.

buzzsaw99's picture

The move was launched by people who fear the Federal Reserve is not tackling the federal deficit...

The retards don't even understand how shit works. The CONgreff is supposed to do the fed gub budget. I suppose the 7-11 cashier is going to check the spot price of gold when I buy a coffee and donut? A gold coin has a face value of $50. How the fudge is that going to work?

fonzannoon's picture

They will just switch to a new paper currency that you convert your gold into at much higher prices. The key is, they promise not to debase the new currency. So it's all good.

buzzsaw99's picture

They should find some trustworthy joo bankers for that job. Oh wait...

Terminus C's picture

I was wondering the same thing.  Though this could be a first step towards the state developing a "gold backed" currency.

In reality it is likely political theatre.

BandGap's picture

You cut a deal with who ever accepts the coins as fair trade.

For instance, you buy a new car for $750 using 15 $50 gold coins. You then point the salesman to the coin exchgange where he/she gets his ~$21000.

Think of what that will save on taxes ;^)

tarsubil's picture

Anyone that trades 15 1oz AGEs for a $21K car is a fool. This will never work. These people don't have a clue. I agree with others. It is theatre performed by retards.

new game's picture

gram scales at the register - hmmm, the good ole days are back...

TeamDepends's picture

Yep, man-purses full of shiny!

moriarty's picture

I can just see the Gresham gang lining up to pay their debts et al with their PM’s ;-)

 

PUD's picture


Brazil is the biggest single small-scale gold producer, with annual production of 80 tons. Some 500,000 gold miners work in the Amazon region alone extracting gold by dissolving ore in toxic mercury. Tests in several mining communities in Brazil found that more than 30% of miners examined had mercury levels above the World Health Organization's tolerable limit. 

In Africa it is less well-known what the condition and impacts of small-scale miners are, although they produce approximately 20% of Africa's gold. In the sub-Saharan region more than 1.5 million people work in the informal mining sector, while in Zimbabwe that figure is about 100,000. Here too the use of mercury is prevalent as a means to chemical extraction of the gold.

 

BUT OF COURSE YOU DON'T GIVE A SHIT JUST LIKE THE BANKERS YOU CURSE

Tinky's picture

Methinks you've eaten too much tuna.

espirit's picture

Uparrow and starve the trolls.

PUD's picture


Nearly 400 square kilometers of tailings dumps are scattered in, around and under the city of Johannesburg. The dumps, or slimes, as they are called, contain waste rock, pyrite and thousands of tons of uranium dust. When it rains, the tailings dumps, especially those that are being reworked for secondary gold recovery, produce sulfuric acid.

With pH levels as low as two (pure water is neutral with a pH of seven), the sulfuric acid mobilizes aluminum, heavy metals and uranium from the rock, and produces iron oxide as a byproduct. When this toxic brew flows into groundwater, streams and rivers, it destroys ecosystems and taints water in a region where freshwater is already in short supply.

espirit's picture

Uparrow and starve the trolls.

LawsofPhysics's picture

Speaking of Brazil, their ten-year bond is now paying over 9%!  As to the price, well, that's another story.

Terminus C's picture

What you say is true.  All human industry is environmentally destructive and exploitative of human and animal life, including agriculture.  This means that unless we stop all modern economic activity we are hurting someone or something.

You are calling those who hold gold hypocrites, yet you are as hypocritical as all of the rest as you use your computer to post your ideas, you dress in polyester based clothing and you eat and drink manufactured products.

 

LawsofPhysics's picture

I have said it before and I will say it again, humanity isn't just another ponzi, it's the ponzi.

GetZeeGold's picture

 

 

Bill Gates says we can solve that problem with vaccines.....not sure how that works but I'm sure they have it all figured out.

tarsubil's picture

In the last 20 years, the cost of required vaccines in the US for a child has increased ten fold from ~$170 to ~1,700. More new and expensive vaccines are on the way. The Vaccines for Children program somehow manages to "negotiate" pricing that is pennies on the dollar. It is all just a big fucking ripoff.

css1971's picture

I prefer to think of it in terms of yeast.

PUD's picture

Do you dump your motor oil down the storm drain because bp has leaks in the gulf?

There is needed compromise and then there is willful disregard 

I do not deny humans the basic needs

I do curse you who take things that you do not need simply because you can

i could throw your warped logic right back at you and condone the action of bankers...would you sell toxic assets because so many others do?

espirit's picture

Uparrow and starve the trolls.

Dewey Cheatum Howe's picture

Take it up with the miners.........

 

Most the gold out there is recycled from one hands to the other, new mined gold is scarce in comparison. Someone else can quote the exact %.

samcontrol's picture

anybody stocking guns gold and beans only cares about himself and his family. That is ok.
Generally no one gives a shit about anything.

StarTedStackin''s picture

Cry me a river, lib pussy!

 

 

 

You asshole leftists never blame the leftist governments for creating economic conditions so poor that people have to risk their lives to make a buck

Cathartes Aura's picture

yeah, those poor economic conditions only get "created" in the years the "leftist" govs are in office.

United Fruit Company.             one of soooo many.

A Middle Child of History's picture

Continued population expansion on a planet of finite resources will eventually do all of us in. Uncontrolled breeding, especially by the more ignorant among us, hastens ecological collapse. You could make an impact by submitting to voluntary sterilization, or better yet, a post-birth abortion.

I happen to like gold; presenting it in the form of jewelry to the opposite sex is a great way to partake of that uncontrollable breeding.

Go troll somewhere else, asshole.

PUD's picture

do you collect ivory from dead elephants too?