Arizona could soon become the second U.S. state, behind Utah, to officially regard gold and silver as legal tender.
The Arizona House of Representatives recently approved a bill that would make gold and silver legal tender in the United States. The bill needs to go through the Senate, which would has to approve amendments made by the House.
Utah was the first state back in 2011 to approve gold for use as legal payment, though the move is seen as largely symbolic. President Richard Nixon abandoned the gold standard in 1971.
Twenty U.S. states have either passed bills to allow gold and silver to be used as legal tender or have been exploring it as an option, according to Jan Skoyles, head of research at The Real Asset Co., a precious-metals investment platform provider.
Under the bill, any gold and silver coins issued by the U.S. Mint will be seen as money, rather than property, she said in commentary on Monday. No one, however, would be compelled to accept the coins in exchange for goods and services.
But even if Arizona approves the bill, studies still need to be carried out to help determine how setting values for gold and silver coins used to pay taxes will be carried out, said Skoyles, adding that Utah’s government is still not prepared to take the precious metals as means of payment.
Myra Saefong, Wall Street Journal Market Watch.
