Utah Legislature Passes Gold Coin Bill
In a move that is sure to bring on the debate about monetary policy in this country, the Utah legislature passed a bill on Thursday March 10th allowing gold and silver coins to become legal tender in the state. And in a move that may be even more significant, the same Utah law makers exempted gold and silver transactions from capital gains tax in the state.
The bill makes silver and gold coins legal tender based not on their face value, but on the value of the precious metal they contain. In other words, you can take your $50 face value gold American Eagle that contains 1 ounce of pure gold and use it anywhere for gold value of around $1,450 right now.
This is important because many critics of investing in gold say that during times of crisis it may be hard to actually get rid of gold coins because they are in such large denominations. However, with the passing of this bill and its probable signing by the Governor, at least in Utah, people will finally start to get used to handling these coins as legal tender and finding a way to make transactions such as this work. It will be interesting to see how much transactions of gold occur in the near future.
Citizens in Utah will now have an advantage when the United States financial system collapses and paper money becomes highly inflated. In a major crisis when people need to bring sacks full of money to the grocery store to get their weekly foodstuffs, those holding gold will only need to bring one small coin to take care of their transactions.
The bigger implication of this action will be to increase the awareness of the serious financial problems we have in this country and to get people thinking about going back to the gold standard. Many politicians and statists will debate the functionality of getting back to the gold standard mainly because they know it will mean they can manipulate the system less, but hen others simple don’t know the difference and don’t have a clue as to what constitutes good fiscal policy in the first place as they have been brainwashed by years of liberal spending habits, intense lobbying and propaganda.
The coming debate over the next few months and even into the next year or two should be very interesting. Be prepared.
Million Dollar Gold Coin From Canada
This is an updated post to yesterday’s post about the million dollar gold coin.
The coins have the 99.999 percent purity rating, which is a notch above the old ‘four nines’ rating that used to be the standard for gold purity in coinage. Canada has been upping the ante in many situations with the gold market, including setting the first standard of the four nines back in 1982, and now creating this monstrosity that outweighs and out-values any coin in existence.
This coin consists of 3,215 troy ounces of gold. At a rate of even a modest $700 to $800 per ounce, that adds up to be about $2.25 to $2.57 million US when compared to the price of gold. However, the price of gold is more like at $1,135 an ounce now and that is more than triple the actual $1 million Canadian face value that the coin holds. Even though the coin was a promotional item from the start, it has created quite a stir among collectors and investors around the world, and everyone is waiting to see what happens next. Considering that it takes 6 weeks to manufacture one of these giant coins, it’s certain that they won’t exactly be flying off the presses by any means.
Canadian Mint Million Dollar Gold Coin
Seen any million dollar gold coins lately? If you haven’t that’s probably because there is only one in existence and it is actually worth way more than 1 million dollars. Plus it may be a little hard to carry since it weighs about 220 pounds.
A few years ago, the Royal Canadian Mint added a new coin to their collection in 2007 that is very rare indeed. The only coin of its kind, this one is valued at more than 455,000 pounds, or $1 million Canadian Dollars. It’s easily the world’s biggest, purest, and highest denomination coin in existence. It weighs more than 220.5 pounds, and its closest rival is the 60 pound “Big Phil” commemorative coin that was minted in Austria to commemorate the anniversary of the Vienna Philharmonic Orchestra. The coin is about the size of an extra large pizza, and was introduced along with the one-ounce bullion coins that are being mass produced to model the giant currency.
The coin was originally designed as a promotional item, but it has since been decided that the coins will be produced further, but in limited quantities. The U.S. has one precious metals distributor that wants three copies of the coin, and Asia and Europe are also expressing an interest in the coin. The coin is 53 centimeters in diameter, and more than 3 centimeters thick, which requires a lot of skilled handiwork to create something this monstrous. The face value of the coin is at $1 million Canadian, but not surprisingly because of the increase in the price of gold in the last 3 years, the coin is worth far more. The price of gold per ounce leaves the coin worth at least triple that amount or more depending on the day that gold prices are checked.