SALT LAKE CITY — Utah legislators want to see the dollar regain its former glory, this month making the state the first to legalize gold and silver coins as currency. The law also will exempt the sale of the coins from state capital-gains taxes.
Craig Franco said he hopes to cash in on it with his Utah Gold and Silver Depository, and he thinks others will soon follow.
The idea is simple: Store your gold and silver coins in a vault, and Franco issues a debitlike card to make purchases backed by your holdings.
He plans to open his business, likely the first of its kind in the country, on June 1.
“Because we’re dealing with something so forward-thinking, I expect a wait-and-see attitude,” Franco said. “Once the depository is executed and transactions can occur, then I think people will move into the marketplace.”
The idea was spawned by Republican state Rep. Brad Galvez, who sponsored the bill largely to serve as a protest against Federal Reserve monetary policy. Galvez said Americans are losing faith in the dollar. If you are angry about government debt, ditch the cash. Spend your gold and silver, he said.
His idea isn’t to return to the gold standard, when the dollar was backed by gold instead of government goodwill. Instead, he just wanted to create options for consumers.
“We’re too far down the road to go back to the gold standard,” Galvez said. “This will move us toward an alternative currency.”
Lawmakers in Minnesota, North Carolina, Idaho and at least nine other states are looking at similar bills.
Opponents of Utah’s law warn that such a policy shift nationwide could increase the prospect of inflation and could destabilize international markets.
