Often I receive that question and this one: “What do you think about the new Utah money where people are able to pay taxes and their goods and services they sell in gold and silver coins?”
Utah just legalized gold and silver as a currency, where you can see the big difference between “legal” and “lawful”. Bear in mind that gold and silver is the only “lawful” money. Some regions in the world want their money to be “lawful” again, so e.g. in Utah. Gold and silver will now be exempt from state capital gains tax in Utah. However, Utah does not have the power to exempt it from Federal capital gains tax. (No tax or legal advice) After all, when gold prices go up you actually aren’t making money. You are simply retaining your purchasing power as the U.S. dollar goes down. Fiat currencies are unconstitutional. The Federal Reserve Bank is acting unlawfully (to use polite wording) and is literally stealing the wealth of all Americans and other people around the world through inflation or in other terms “legalized confiscation” by debasing the world’s reserve currency.
But why is the purchasing power of gold constant and ever lasting?
For example 100 years ago a brand new man’s suite cost $20. Today it costs a four digit Dollar amount or in other words exactly the price of 1 oz of gold. That means in terms of lawful money gold the price remained the same – 1 oz of gold, and with it the purchasing power of gold. In legal tender, price got inflated from $ 20 to whatever the price of gold is right now.
In the long term it is even better: During thousands of years one ounce of gold could buy you, half a year of free housing, free transport, free food, free staff at home.
For further information go to Gold Souk.
Let us put that into perspective for the last 10 years and other currencies also, so that you can see, how much you have been robbed. Here is the annual performance of Gold measured in various fiat currencies:
As you can see, in average an “investment” – in order to be one – would have had to outperfrom e.g. 18.4 % p.a. in USD or 18.3 % p.a. in GBP or 14.6 % p.a. in EUR during the last decade. But the reality is, that investments cannot even ‘break even’ with lawful money, which is Gold (and silver).
Enjoy, prosper and profit from constant purchasing power!