gold bullion utah
gold bullion utah
What is the difference between nominal value and the value of the melt?
Recently I saw Utah passed a bill to make gold / silver legal tender. I'm not here to debate the issue. I'm trying to understand something though. If I buy a gold coin (not bars) produced government, which will cost me about $ 1500. But the "face value" is only $ 50. So if I had to go to Utah and to pay for something with my money gold I will only buy $ 50 of stuff? Why the hell would I do that? I see a man in Utah, will have a repository where they can hide their gold and silver then have a "debit card" type thing to pay for these things. Again, if the nominal value is only $ 50, but paid much more for the money, Why do that? As I said, I'm not really here to debate whether something will come of this law. I'm trying to figure out why it would not be even a nominal value if the value of the coin is much more than face value?
Face value of modern gold coins is an arbitrary figure chosen by senseless and government issues in its stead. Has zero relationship with the precious metal value. Utah law is largely symbolic, but has a practical side. The practical aspect is that the state now seen in gold coins as currency instead of assets, eliminating the state tax on any profit made when the coins are sold or exchanged something of equal value. Not eliminate any federal tax due to the sale of a gold coin for $ 1,500 he bought for $ 500. The symbolic part is that, in reality, the coins U.S. Bullion and are legal tender in every state, there is no law against exchanging them for goods or services, at par value or any value parts in the transaction agree. Nothing in Utah law that says you can only get the face value if you take a gold $ 50 gold coin to a shop, and there is nothing in the law requiring any company to accept. Most companies will gladly accept them if you 'sell' their cheaply enough, however. The law is also a symbolic thumbing of the nose by a conservative state Federal Reserve, which he sees as the destruction of Utah, the value of the dollar. Other states are considering similar legislation. Been even talk of some states to issue their own currency.
