DiscussWorldIssues - Socio-Economic Religion and Political Uncensored Debate - View Single Post - Utah House stamps gold, silver as legal tender

**pavilionnotebook** · 04-08-2011, 05:03 AM

Originally Posted by Uncle Salty Gold should never be used as an every day currency. Either should silver.

Only an idiot would part with precious metals instead of fiat.

To the contrary, gold and silver should be used as everyday currency, but it's only in an economy where fiat paper tickets masquerade as real money, backed by legal tender laws forcing them upon the populace, will gold and silver stay home. It's been said again and again, why spend gold when by law you can give them paper tickets instead?

I think the law is primarily symbolic in nature, but there could be some interesting tax loopholes that develop from this. If gold and silver are now legal tender, I could theoretically pay my employees independent contractors $1/hr for services and pay them in silver dollars, and any profits I make can be converted to $20 gold double eagles by the end of the year. Sorry, but gold is best used as the store of value function of money, not as day to day currency. Silver is too valuable as an industrial metal and therefore its supply is not stable enough to be used as day to day money or even for a store of value function like gold.

Nothing wrong with fiat if gold is used as the store of value function and floats in value.

Read FOFOA and it all makes sense.

04-08-2011, 05:03 AM	#9
pavilionnotebook Join Date Oct 2005 Posts 527 Senior Member	Originally Posted by Uncle Salty Gold should never be used as an every day currency. Either should silver. Only an idiot would part with precious metals instead of fiat. To the contrary, gold and silver should be used as everyday currency, but it's only in an economy where fiat paper tickets masquerade as real money, backed by legal tender laws forcing them upon the populace, will gold and silver stay home. It's been said again and again, why spend gold when by law you can give them paper tickets instead? I think the law is primarily symbolic in nature, but there could be some interesting tax loopholes that develop from this. If gold and silver are now legal tender, I could theoretically pay my employees independent contractors $1/hr for services and pay them in silver dollars, and any profits I make can be converted to $20 gold double eagles by the end of the year. Sorry, but gold is best used as the store of value function of money, not as day to day currency. Silver is too valuable as an industrial metal and therefore its supply is not stable enough to be used as day to day money or even for a store of value function like gold. Nothing wrong with fiat if gold is used as the store of value function and floats in value. Read FOFOA and it all makes sense.
	Quote