Monday, May 23, 2011

Utah Gold Depository Opens On Heels Of Gold-Standard Law

Now that Utah has recognized gold and silver as legal tender in the state, entrepreneur Craig Franco is opening up the Utah Gold and Silver Depository to tap in to the anticipated demand to use gold and silver as money.
The idea is simple: Store your gold and silver coins in a vault, and Franco issues a debit-like card to make purchases backed by your holdings.

He plans to open for business June 1, likely the first of its kind in the country.

"Because we're dealing with something so forward thinking, I expect a wait-and-see attitude," Franco said. "Once the depository is executed and transactions can occur, then I think people will move into the marketplace."
The Minnesota legislature has already set up a committee to study the issue, and there's a push to have the U.S. government drop the caital-gains tax on gold and silver.

The latter would go a long way to facilitating the use of gold and silver as money, as capital-gains taxes inhibit the circulation (buying and selling) of the metals. Should the feds do so, gold and silver tender will take off.


  1. very informative and well written article. I had no idea this was happening in the USA. Do you know of any good cash for gold companies? I used and did well out of it. Do you have any more information on this switch to gold and silver as legal tender? will check back here for a reply.

  2. If gold and silver become legal tender, how is it going to effect people who want to sell gold for cash

  3. Good questions. You can find out more info by clicking the "goldstandard" tag on the bottom of this post, or the "utah" tag. The latter tag calls up posts dealing with how the gold-standard law came about. The former tag casts a broader net.

    If you're interested, has more information too.

    As for how it'll affect the cash-for-gold industry: there won't be much change. The only gold that's certified legal tender is U.S. Eagles. Those are usually sold to a dealer or on eBay. Scrap gold isn't and won't be legal tender; the U.S. Constitution forbids it. So, the industry should keep ticking along as usual.

  4. The boarder with Mexico no longer exists i think you will find George Bush junior signed it away he did a deal with Mexico and Canada no boarders.