States Authorizing Gold As Money: An Idea Whose Time Is Coming

As discussed by the Daily Reckoning in the Christian Science Monitor, legislators in twelve states are contemplating authorization of gold and silver money.

States haven’t issued currency in any form for more than a hundred years. So why now? Disgust is probably the answer. Various state legislators are disgusted by the federal government’s promiscuous dollar-printing. Accordingly, legislators in a dozen states are contemplating legislation to issue gold or silver-based currencies, including Utah, South Carolina, Virginia and New Hampshire.

The greenback hasn't had any tie to gold since 1971, when President Nixon authorized a "temporary" severance from the metal. Since then, government spending has grown considerably. Given the rising opposition to high spending, it's not inconceivable that gold will be remonetized at the federal level.


One reason for the new interest in gold and silver money is public interest. Ron Paul cut a real swath in 2008, and those initiatives are likely the aftereffect of his Presidential campaign.