Should Utah Have a Gold Depository?
Gold has long been seen as a store of value that protects from inflation and currency devaluation, as well as performing well during economic downturns.
Utah has become an innovator by accepting precious metals as legal tender, marking an innovative financial system based on timeless assets – creating a solid basis for sound money in the future.
HB306
Gold has long been recognized as an asset that provides protection during economic instability, offering investors a hedge against depreciating fiat currencies. Furthermore, its long-term stability makes it ideal for building your wealth.
Utah state treasurer Marlo Oaks announced in 2024 that she would invest 10% of Utah’s rainy day funds in precious metals as an important step toward creating sound money in the future. With HB306, both houses of parliament approved it further by permitting state vendors to request payment in gold instead of dollars.
Rep. Ken Ivory introduced legislation mandating that states hire a company to implement an electronic currency system that supports transactions while also guaranteeing transparency and auditability, opening up opportunities for other states to follow suit, thus shifting toward an economy based on timeless assets rather than volatile fiat currencies.
The Goldback
Goldbacks are an innovative form of currency that incorporates real gold into paper money. Their five Goldback note contains 1/200th of an ounce, giving it both intrinsic and market value, making it an effective investment vehicle.
Utah’s 5 Goldback coin is a fine example of its innovative gold-backed currency. Combining beauty with functionality, its limited mintage also makes this collectible piece attractive for numismatists.
As a gold-backed currency, the 5 Goldback offers investors looking to diversify their portfolio a unique investment option. But investors should remember that Goldbacks are not legal tender and should only be used within Utah state borders; to protect their Goldbacks properly investors should find safe storage locations such as local depository facilities that understand precious metal storage better.
Alternative Assets
Utah is a prime candidate for hosting a precious metals depository by 2023 due to its longstanding connection to gold mining and outstanding fiscal record, as well as its rich mining history and strong fiscal profile. Not only could gold benefit from being stored within state facilities; new digital payment systems like the Goldback show growing investor interest in precious metals investments.
Gold offers an ideal defense against inflation and government policy risk; moreover, its intricate designs make the Goldback an attractive addition to any collection.
Utah became the first state to recognize gold and silver as legal tender in 2011, thanks to Rep. Kenneth Ivory. Under this new law, state vendors could now receive payment in gold or silver from Utah government. This move furthered Utah’s commitment to “hard money”, as specified in Article 1, Section 10 of the US Constitution which authorizes States to make gold and silver coins legal tender.
Public Records
While fiat currencies depreciate with time and spending by federal governments is unconstitutional, precious metals hold their value over time. By including gold into its system, Utah aims to set an example by merging historical monetary principles with modern financial technology.
Utah lawmakers led the way in 2011 by passing legislation making gold and silver coins legal tender. Now, Utah State Treasurer has the ability to invest part of Utah State Rainy Day Fund in gold and other precious metals – creating reserves which have already brought millions in value back. As gold prices increase further, this investment continues to produce greater returns.
Many Americans are taking note and adding physical gold to their portfolios as a hedge against inflationary concerns and economic uncertainty, in an apparent sign of broad monetary shifts to come. Electronic payments with gold backing as well as Utah Goldback circulating alternative currency containing fractional amounts of 24-karat gold may signal these shifts as the market.
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