Utah: Forget dollars. How about gold?
A set of "Golden Eagle" coins produced by the United States Mint. NEW YORK (CNNMoney) -- Gather 'round, gold standard enthusiasts.
There is a new law in the state of Utah that might be of interest.
The Beehive State has a new measure on the books that eliminates state taxes on the exchange of gold and silver coins and directs the legislature to study an "alternative form of legal tender."
The law, signed by Gov. Gary Herbert last week, also recognizes gold and silver coins issued by the federal government as legal tender in the state.
Of course, they already are. But people use them as investments, not pocket change.
The big legal change in Utah is that the state tax code now treats gold and silver coins -- issued by the U.S. Mint -- as currency rather than an asset. That means no capital gains or other state taxes will be levied when the coins are exchanged.
Federal taxes still apply.
The law has limited applications. As currency, the gold and silver coins, which are usually purchased by individuals as investments, are still only worth their face value in the eyes of the state.
So even if the actual precious metal in your $50 coin has a market value of $1,400, it still only has $50 dollars worth of purchasing power.
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