Tradition‘ is making a comeback.
One by one, the States are reinstating gold and silver coins as legal tender.  Momentum for the use of sound currencies once again is clearly picking up steam, and we expect it to only accelerate as the public becomes more aware of the freedom offered by debt free sound money.

Missouri may be the second state, after Utah, to authorize the use of gold and silver coins or special “sound-money depositories” to pay debts to state government.

As the Missouri General Assembly pushes toward adjournment, a bill that originally aimed at exempting gold investors from capital gains taxes has now transformed into the Missouri Sound Money Act of 2012, which would make gold and silver legal tender within the state.

The legislation would also eliminate several state taxes on gold and silver, including capital gains and sales taxes.

House Bill 1637 would allow the establishment of sound-money depositories that would allow citizens to deposit precious metals and use debit cards to pay bills out of those accounts. The depositories would be regulated by Missouri’s Secretary of State.

It also directs the state to accept the gold and silver coins issued by the U.S. government for payment of debts. However, the measure would not compel any other person to accept gold and silver coins as tender.

Read more:

  1. Be aware that the latest propaganda tactic will be to say that silver prices will fall because silver is an industrial commodity, and the world is in the midst of a deflationary trend in commodity prices (eg, lower demand from China).  But this will be their excuse for continuing to suppress silver prices.

    But, as Jim Rogers likes to say:
    * If the economy of the world improves, commodity prices will go up due to higher demand.
    * If the economy suffers, there will be money printing leading to higher prices in commodities.

    And:
    * Agriculture is still his favorite investment because the supply of farmers is dwindling fast.

    BTW, there is on ongoing poll over at the SilverSeek website asking if people think the price of silver is manipulated:

    An overwhelming 98% of the people say YES!

  2. Two ‘small’ issues.  State depositories? ,  A state holding the people’s phyzz?  No way,  Jose.

    A state holding people’s phyzz AND providing a debt card  There’s a real winner.  One more way to track and control spending.  The IRS  tax rate forprice appreciated gold bullion is ordinary income taxes for one year or less.  Over 1 year is 28%.   Removing a state capital gains tax,  for now or course, is all good  and well unless the state needs money   Then the tax game is over.  US Gov tracking is pretty simple too  Just a few arm twists and the state will cough up the data.

  3. OT, but I have a question about silver content in a coin. I bought on ebay a 10 silver kreuzer Austrian coin and it is a typical Littleton Coin Co. cased one. It says on the back that it has .925 silver content and is 31.06 g. Basically, aside from numi value, is this coin worth .925 x spot price? And I already have one of these that I had to pay in the 40s for (and that was a few months ago-not a very different spot at the time-)but the auction I recently won wound up in the high 20s. 

    I’m trying to find bargains on ebay and kept an eye on this one and thought I may have gotten a good deal.
  4. FreeMktFisherMN,

    Yes, sounds like it’s 92.5% Silver, so worth .925 x spot price of silver. If you paid the high 20′s for it, seems like you paid a little under bullion spot price for it. Sounds like you got a pretty good deal on your coin.

    I feel like telling a little of my own recent experience…

    I recently purchased a few of the old 90%’er 1920′s Peace Dollars. At the time, the spot price was 28.30. Premium over spot was $5, so I paid $33 for them.

    Soon after I purchased those 90%’ers, I purchased Eighteen 1 oz. Silver Rounds. Spot price was at $27.52. I was pretty happy as it looks like I may have “caught the falling knife”(lowest spot price we might see for a while), although I don’t usually worry to much about the spot price. The spot price+premium would have to be considerably higher for me to quit buying silver! But it is nice to get in on the lows.

    If you like to buy on the dips in spot price, I see signs that lead me to think that supply could be very tight right now. Get phyzz while the getting is good! Price might rise considerably, soon.

Leave a Reply