Fiat Explosion & $81k Gold Price - US Sell Gold For Bitcoin? (Florida Wants Gold & Silver)

Summary

In this video, Smart Silver Stacker discusses both the promising and concerning developments surrounding gold and silver. On the positive side, Florida is considering reinstating gold and silver bullion as legal tender by 2025, with potential tax exemptions and the introduction of goldbacks—fractional gold notes. However, the federal government is unlikely to return to sound money soon, given the vast amount of fiat currency in circulation and the political resistance to abandoning deficit spending. The video highlights the growing state-level momentum for sound money, but acknowledges the challenges at the federal level, including proposals to sell U.S. gold reserves for Bitcoin.

Takeaways

• 😀 Florida is considering reintroducing gold and silver bullion as legal tender, potentially launching its own gold currency by January 2025.
• 😀 Several states, including Louisiana, Texas, South Carolina, West Virginia, and Utah, have already passed legislation to recognize gold and silver as legal tender.
• 😀 Florida’s Chief Financial Officer, Jimmy Petronis, is leading a study to explore the feasibility of gold and silver as legal tender in the state.
• 😀 If successful, Florida’s gold and silver bullion could be exempt from state property taxes and capital gains taxes, making them even more appealing as inflation hedges.
• 😀 Florida is set to launch Goldbacks, a physical gold currency, in January, with new denominations such as 1/2 Goldback, 2 Goldback, and 100 Goldback notes.
• 😀 The introduction of fractional gold-backed currency aims to make gold more accessible for everyday transactions, similar to how pennies functioned historically in the U.S.
• 😀 A 1/2 Goldback note will be the smallest unit of currency in Florida, representing 1/2000 of a troy ounce of gold, similar to a penny in old gold-based monetary systems.
• 😀 A shift back to a gold-backed monetary system at the federal level is unlikely in the near future due to the enormous money supply and political resistance to ending deficit spending.
• 😀 To back the U.S. money supply with gold today, the price of gold would need to exceed $81,000 per ounce, given the current money supply and gold reserves.
• 😀 Some politicians, like Wyoming Senator Cynthia Lummis, have proposed selling U.S. gold reserves to buy Bitcoin, a controversial move that shifts away from traditional hard money systems.

Q & A

What is the good news regarding gold and silver in Florida?

Florida is considering reinstating gold and silver bullion as legal tender. Additionally, the state plans to launch a gold currency as early as January 2025.

What is the potential impact of Florida's decision to use gold and silver bullion as legal tender?

If successful, gold and silver bullion could be used as currency without being taxed as personal property or subject to sales tax or capital gains tax at the state level. This could make gold and silver more effective as inflation hedges.

What are Goldbacks and how do they relate to Florida's gold currency plan?

Goldbacks are physical gold-backed currency notes. Florida will become the seventh state to introduce Goldbacks, and new denominations, including a 1/2 Goldback note, will be available in early 2025.

Why is the introduction of a 1/2 Goldback note significant?

The 1/2 Goldback note is significant because it allows for smaller, more divisible units of gold. It is roughly equivalent to the historical penny, but with gold's purchasing power, offering a more practical way to use fractional gold in everyday transactions.

How does the fractional nature of Goldbacks compare to historical currency systems?

Historically, the U.S. used gold and silver as legal tender with coins like the $20 gold coin. The 1/2 Goldback note would be the equivalent of a penny in that system, allowing for smaller denominations of gold for everyday use.

What are some of the states that have already recognized gold and silver as legal tender?

Several states, including Louisiana, Texas, South Carolina, West Virginia, and Utah, have passed legislation recognizing gold and silver as legal tender.

What is the bad news discussed in the video regarding gold and silver at the federal level?

At the federal level, there is little movement towards returning to a sound money system. In fact, some politicians are proposing to sell U.S. gold reserves to buy Bitcoin, which further undermines the potential for a gold-backed currency system.

Why would returning to a gold and silver-backed monetary system require significantly higher prices for gold and silver?

Due to the enormous increase in fiat currency since the U.S. left the gold standard in 1971, a gold-backed system would require much higher prices for gold and silver to back the current money supply. For instance, the price of gold would need to rise to over $81,000 per ounce to match the current money supply.

How do U.S. politicians like Cynthia Lummis impact the future of gold reserves and sound money?

Senator Cynthia Lummis, among other politicians, has proposed selling off U.S. gold reserves to buy Bitcoin as a way to reform the monetary system. This approach is seen as problematic by critics, who believe it undermines the role of gold in a sound money system.

What is the relationship between the U.S. dollar's debasement and the shift from gold and silver-backed currency?

The U.S. dollar's debasement began after the U.S. left the gold standard in 1971, resulting in massive increases in the fiat money supply. This shift has made the possibility of returning to a gold-backed currency more challenging, as it would require much higher gold and silver prices to back the current supply of money.