In a stunning move from the state of Arizona, it has pushed to make gold and silver legal tender. This move would mean that gold and silver could be used to buy and sell exactly the same legal status as the dollar. This means that anyone who owns or is able to privately produce gold and silver can use it as legal currency in Arizona. Conservatives in the state are the ones who have the problem; they feel that the US government is pushing the country towards some kind of financial abyss.
Certainly, recent events in the world have lead to many people coming to the same conclusion. It has been all over the news recently, and the issues in Cyprus are testament to the general feeling of unease in the global economy. Lawmakers in Arizona are simply responding to this, and the use of gold and silver will certainly keep anyone who has invested in the stuff in a good position. It will also mean that the wealthier people should be able to fall back onto their own personal gold and silver reserves if their wealth becomes less impressive due to a bank collapse.
Arizona is not alone. More than a dozen states in the United States have chosen to legalise gold and silver as currency. Some of the state representatives have been more vocal than others when it comes to justifying such a move, with thoughts concerning the way the government ‘can’t touch’ gold and silver being aired regularly on TV. The fact that gold and silver have always been traded over the centuries makes many feel it is a solid and dependable currency that will keep people sustained, even as the economy flails.
The initial rumblings occurred back in 2011, when Utah became the first US state to legalise the use of gold and silver as currency. Since then, at least 12 have followed suit. Investors the world over, not just in the United States, have chosen to place their money in gold, rather than elsewhere. This has been a trend for a few years now, but it has gathered pace in the last couple of years, as the financial picture has become progressively gloomier.
It is also quite peculiar how gold reacts to the dollar’s fortunes. While the dollar falls as a currency worldwide, gold’s fortunes rise. When Cyprus found its recent bailout resolution, gold rose immediately in price by $12. This is a huge increase for any traded item, never mind one that has traditionally been seen as one that is not really ‘of this time’.
It remains to be seen how the global economy will fare with so many problems on the financial horizon, but states like Arizona are sending out a clear message to investors. In fact, it also tells ordinary people, with jobs and careers that earn currency as salary, that things may well get worse before they get better. Gold is making a huge comeback, and this may not be a good thing, for those who don’t have it.
About the author: Bill runs 247cashforgold.co.uk a site to sell unwanted gold for cash.