Hard money advocates in Oklahoma have reason to celebrate, as the state legislature passed gold and silver legal tender laws this week, which will go into effect on November 1st. Oklahoma becomes the fifth state to join the fray since Utah first passed a law in 2011 making gold and silver legal tender.
While the law states that no one can be compelled to accept gold and silver coins as legal tender, except if under written contract, this is a step in the right direction for advocates in support of the elimination of legal tender laws. In addition to Oklahoma and Utah, Texas, Arizona and Louisiana have all passed gold and silver legal tender laws over the past year.
This helps to put gold and silver on a level playing field with other investments, which only requires that taxes be paid on any profits realized from the transaction. Of course, at one point in time, gold and silver coins circulated as money, and it wasn’t until FDR’s gold confiscation act of 1933 and the debasement of silver from our coinage in 1965 when we began using fiat currency. President Nixon subsequently severed all ties to a gold standard in 1971, when he effectively put an end to the Bretton Woods agreement.