Since the Federal Reserve began expanding its quantitative easing program in late 2012, lawmakers in several U.S. states have introduced legislation that would recognize gold and silver bullion, or coins, as a form of legal tender.
According to Bloomberg News, Utah took similar steps in 2011, ultimately authorizing the use of bullion by businesses and private citizens. Kansas, South Carolina and Arizona are among a group of states moving in a similar direction, as government officials in those regions fear that money-printing operations by the U.S. central bank are undermining the intrinsic value of the dollar.
"The legislation is about signaling discontent with monetary policy and about what Ben Bernanke is doing," Loren Gatch, a professor of politics at the University of Central Oklahoma, told the source. "There is a fear that the government, or Bernanke in particular and the Federal Reserve, is pursuing a policy that will lead to the collapse of the dollar. That's what is behind it."
The price of an ounce of gold has been volatile in the past year and a half, after rising by an extraordinary 78 percent since the financial crisis hit a crescendo in 2008. The cost peaked at $1,923 in 2011, and has since fallen to $1,575.90 as of last week.
At the heart of these draft laws is the belief that, due to central bank actions during the Great Recession, the dollar will lose its purchasing power. To combat this, lawmakers want to enable citizens and companies to use a form of money that will not fall prey to inflation. According to some economists, the dollar's value has tumbled roughly 95 percent since the Federal Reserve System was implemented.
However, gold is just one way to store money in a stable way. You can learn more about wealth preservation methods like investing in precious metals by visiting GreatWealthStrategies.com today.