Virginia Considering Minting Gold and Silver Coins
Posted by Adam King on February 06, 2013
Talk of states losing faith in the Union or in the political leadership out of Washington, especially in the current climate of financial hardship, has reached its next step as reports surfaced today that Virginia is seriously considering having its currency minted in gold and silver.
The Virginia House of Delegates has passed a bill calling for a study, which will cost taxpayers more than $17,000 that will assess the value of a state-issued coin. According to reports, several other states are considering several plans. The most recent iterations of this trend include a Montana legislator lobbying the state government to be paid in gold and silver coin, which would be in line with the concerns of constituency in his view.
At the heart of state movements such as this is the fear that Americans can’t trust the Federal Reserve to operate the monetary policy of the nation to some degree or another. Whether or not the doubt is founded, the move into gold and silver currency is a strong movement that should be considered when projecting the value of gold and silver coin in the future.
The strength and stability of the U.S. dollar is a significant issue both for individual citizens and large financial institutions. While we have no experience of anything as significant as hyperinflation, the loss of purchasing power in the U.S. dollar has been at least a partial contributor to the long-term bull market in precious metals that has seen the price of gold rise from $281 per troy ounce in 2001 to the current prices around $1,677.70 per troy ounce.
The Virginian-Pilot calls the measure put forward by Republican Bob Marshall as a conservative shout-out, though Marshall insists he’s serious. Marshall told NBC that the state can’t mint money, but it can mint gold and silver coins. He added that it sounds like a small difference, but it is a difference legally.
The U.S. Constitution is in concord stating states do not have the power to coin money, but they may make gold and silver coin a tender in payment of debts.
In Marshall’s analysis, that line along with 19th century Supreme Court decisions make the way for a Virginia coin according to the Washington Post.
The consideration of alternative currency is not confined to our times, but it is a sign of the times.