Gold and Silver coin - South Carolina 4th state in the union, Ag/Au = legal tender - [MONEY]

[Zenaan Harkness]

Actual price of physical gold around $2,175 today - and that's in US dollars, which is over $3,500 Aussie dollars!! (Courtesy today's US Mint 1oz gold eagle price.)

And a little known index pokes its head up, the Exchange-For-Physical Gold Index.

We are in transition folks.

  "There's No Gold" - COMEX Report Exposes Conditions Behind Physical Crunch
  https://www.zerohedge.com/markets/theres-no-gold-comex-report-exposes-conditions-driving-physical-supply-problems

    .. Just recently, the CME raised margins yet again for 100-oz gold futures contracts to $9,185/$8,350 for initial/maintenance margins, representing a massive 86% increase in margins, and for 5000-oz silver futures contracts to $9.900/$9,000 for initial/maintenance margins, representing a gigantic 73% increase in margins, in just a couple months’ time. Normally, such relentless increases in initial/maintenance margins in gold futures markets is sufficient to prevent physical gold supply problems from afflicting futures markets, but the fact that even this reliable manipulation mechanism failed recently is a sign of additional tectonic earthquakes to come in the global financial system.

    ..



On Wed, Nov 27, 2019 at 11:43:23AM +1100, Zenaan Harkness wrote:
> >From the "getting back to the constitution" and the "about time"
> departments (but Texas is not yet one of those 4 states):
> 
>   South Carolina Legal Tender Act Would Treat Gold & Silver As Money
>   https://www.zerohedge.com/economics/south-carolina-legal-tender-act-would-treat-gold-silver-money
>   https://libertarianinstitute.org/articles/south-carolina-legal-tender-act-would-treat-gold-and-silver-as-money/
> 
>     A bill prefiled in the South Carolina House would make gold and
>     silver coins legal tender in the state. Passage of this bill
>     would take a step toward creating currency competition in South
>     Carolina and undermine the Federal Reserve’s monopoly on money.
> 
>     Rep. Stewart Jones filed House Bill 4678 (H.4678) on Nov. 20.
>     Under the proposed law, “gold and silver coins minted foreign or
>     domestic shall be legal tender in the State of South Carolina
>     under the laws of this State. No person or other entity may
>     compel another person or other entity to tender or accept gold or
>     silver coin unless agreed upon by the parties.”
> 
>     Practically speaking, this would allow South Carolina residents
>     to use gold or silver coins to pay taxes and other debts owed to
>     the state. In effect, it would put gold and silver on the same
>     footing as Federal Reserve notes.
> 
>     The phrase, “unless agreed upon by the parties” has important
>     legal ramifications. This wording reaffirms the court’s ability,
>     and constitutional responsibility according to Article I, Section
>     10, to require specific performance when enforcing such
>     contracts. If voluntary parties agree to be paid, or to pay, in
>     gold and silver coin, South Carolina courts could not substitute
>     any other thing, e.g. Federal Reserve Notes, as payment.
> 
>     South Carolina could become the fourth state to recognize gold
>     and silver as legal tender. Utah led the way, reestablishing
>     constitutional money in 2011. Wyoming and Oklahoma have since
>     joined.
> 
>     The effect has been most dramatic in Utah where United Precious
>     Metals Association (UMPA) was established after the passage of
>     the Utah Specie Legal Tender Act and the elimination of all taxes
>     on gold and silver. UPMA offers accounts denominated in U.S.
>     minted gold and silver dollars. The company also recently
>     released the “Utah Goldback.” UPMA describes it as “the first
>     local, voluntary currency to be made of a spendable, beautiful,
>     physical gold.”
> 
>     South Carolina has already repealed the sales tax on gold and
>     silver. That removed one barrier to using gold and silver in
>     everyday transactions. Capital gains taxes are still imposed on
>     gold and silver for state income tax purposes. After establishing
>     gold and silver as legal tender, South Carolina should repeal the
>     capital gains tax to completely open the door to using it as
>     money.
> 
>     As the Sound Money Defence League explains, “Practically
>     speaking, state laws that recognize gold and silver as money
>     restore a government view of precious metals as the favored form
>     of money – a currency rather than a piece of property or other
>     asset. Using this logic, it would be inappropriate for a state to
>     levy taxes when the precious metals are used or exchanged.”
> 
>     Background
>     ...
>