A Comeback for the Gold Standard?

Posted by Adam Sharp - Friday, March 4th, 2011

40 years after the U.S. abandoned the gold standard, it may be starting a comeback. As the dollar's status as reserve currency continues to waver, rivals like the precioous metals, Chinese Yuan, Euro, and SDRs are vying for top spot.

JP Morgan recently started accepting gold as collateral for clients. Today Utah legislation was introduced that would allow gold and silver coins to serve as currency. Slowly, the gold standard is making a comeback.

Fox News reports on the possible return on gold and silver as currency in America.

The Utah House was to vote as early as Thursday on legislation that would recognize gold and silver coins issued by the federal government as legal currency in the state. The coins would not replace the current paper currency but would be used and accepted voluntarily as an alternative.

The legislation, which has 12 co-sponsors, would let Utahans pay their taxes with gold and also calls for a committee to study alternative currencies for the state. It would also exempt the sale of gold from the state capital gains tax.

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