interesting first move by utah: http://www.youtube.com/watch?v=151pa5c934c i think this will take a while to find its feet but a very symbolic move by utah. sorry if this has already been covered.
It would be handy for those in utah that have a lot of their wealth in PM's to pay their rates etc in PMs. Save converting back to currency. You'd have to imagine it would take a long while for people to get use to the idea for day to day stuff particularly in the bull market people would most likely want to hang onto their PMs and use their currency for that.
you have to realise that the gold and silver coins can only be used at their face value in Utah, so a 1 oz silver coin would be usable as $1 instead of its true value around $40 however this is a good sign and i heard about 13 other states are proposing such legislation, the benefit is that the tax laws on selling PMs there are the same as for fiat currency now
so would that mean hypothetically a merchant could set 2 prices, the full 'fiat' price say, $40 but if you pay with a silver coin the price is only $1. They they only have to declare sales tax on $1. Is that scenario a possibility?
I guess they could barter for things taking the true value into account, I doubt they could legally do what your saying yet though it could be possible
If its definately traded on face value it sounds like a a voluntary version of the confiscation... i wonder whether the shop keepers will be forced to hand the metal in to the government. Otherwise if i were a shopkeeper, I'd just substitute metal for cash and keep the metal myself... might be a good way to stack in Utah!
