The U.S. Constitution (Article I, Section 10) provides for individual states to recognize gold and silver coins as payment for all debts. Last Wednesday, Oklahoma joined Louisiana, Texas, and Utah in exercising their Constitutional right to grant U.S. minted gold and silver coins legal tender status.
Bartering with gold or silver coins is legal in all states. However, states with legal tender recognition make it much easier for citizens to receive payments or pay bills in gold or silver. Legal tender status means no state or local sales or income taxes apply to transactions involving gold and silver American Eagles (and certain other U.S. coins).
At the federal level, capital gains taxes would still apply on coins whose value has appreciated in dollar terms.
What’s needed to allow gold and silver to compete on a level playing field with the U.S. fiat dollar is what Oklahoma has done at the federal level. Until then, we as individuals can help undermine the dollar’s undeserved and highly abused monopoly status by pressuring our state legislatures to declare gold and silver legal tender.