A bill signed into law on April 11 provided legal tender for gold and silver in the US state of Arkansas, allowing citizens to use gold and silver coins to pay off debts. The bill also makes it clear that gold and silver “coins” will not be considered property for tax purposes, and transactions made using these precious metals will not result in a tax charge.
Arkansas accepts gold and silver as legal tender
Arkansas moved to make gold and silver legal tender in its territory. “Arkansas Legal Tenders Act,” Occurred By Sarah Huckabee Sanders, Governor of Arkansas on April 11, he explicitly states that “specie” gold and silver (meaning any type of bullion or coin containing these substances) can be used to pay off debts.
The law also states that “no particular type or legal tender may be described as personal property for tax or regulatory purposes,” and that “the purchase, sale, or exchange of any type or form of property shall not give rise to any tax liability.”
The law, which will go into effect 90 days after it is approved in the legislative session on April 7, makes Arkansas the fourth state to designate previously approved gold and silver coins as legal tender, after Wyoming, Oklahoma and Utah.
More countries are moving to approve alternatives to the US dollar
23 countries now developing Regulations that would also allow its citizens to use gold and silver as legal tender, according to the Tenth Amendment Center, an advocacy organization for federalism. Michael Marahe, communications director at the Tenth Amendment Center, believes that this is an initiative to undermine the powers of the US Federal Reserve, note that the states are “canceling the Federal Reserve on a state-by-state level”.
The theory behind this idea is that in a multi-currency environment, the better currency will prevail. In this sense, constitutional bidding expert Professor William Green explains:
Over time, as the population of the state uses both Fed notes and silver and gold coins, the fact that the coins carry a value higher than the value of the federal banknotes will lead to the effect of “reverse Gresham’s Law”, whereby good money (gold and silver coins) will be expelled Bad Money (Federal Reserve Securities).
The controversy over the bidding of gold and silver goes back as far, with experts stating that this possibility is provided for in the United States Constitution, which states that “no nation … shall make anything but gold and silver coins tender for payment of debts.” Market analysts such as Peter Schiff have predicted that a bull market for gold is coming, saying “it will be amazing”.
What do you think about making Arkansas a legal tender for gold and silver? Tell us in the comments section below.
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