Our view on the possibility of 23 US States recognising Gold and Silver as legal tender
Five hundred gram silver bars sit next to one thousand gram gold bars in an arranged photograph at the Istanbul Gold Refinery in Istanbul, Turkey, on Thursday, May 12, 2011. Both the precious metals, silver and gold, rose today on stockists buying for the ongoing marriage season, amid a firming global trend. Photographer: Kerem Uzel/Bloomberg via Getty Images
On our show, we were recently discussing the trend towards recognizing gold and silver as legal tender in the US. As we reported earlier, a growing number of US states are taking steps to reclaim gold and silver as legal tender, with 23 states having already passed laws recognizing these precious metals as alternative currencies.
According to Invezz.com, the website that originally broke the story, one of the main reasons why gold and silver are seen as attractive alternative currencies is that they have a long history of being a store of value. In addition, gold and silver are widely viewed as safe haven assets, which means that they tend to perform well during times of economic uncertainty.
Here’s a quote from Shivam Kaushik, writing for Invezz: “The move comes amid growing concerns about the risks of inflation and currency devaluation, with many Americans seeking alternative ways to protect their wealth. By recognizing gold and silver as legal tender, these states are taking steps to protect their citizens from the risks of economic uncertainty.”
So, what does this trend towards recognizing gold and silver as legal tender mean for investors? Well, Invezz reported that it could lead to increased demand for precious metals, as investors look to protect their wealth against inflation and other economic risks. This increased demand could lead to higher prices for gold and silver, which could in turn have an impact on companies that produce or rely on these metals.
Here’s another quote from Invezz: “While the trend towards recognizing gold and silver as legal tender in the US is an important development, it is unlikely to be the only factor that influences investor sentiment. The UK stock market is driven by a range of factors, including economic growth, interest rates, and geopolitical events.”
Overall, the trend towards recognizing gold and silver as legal tender in the US is an important development that could have significant implications for the global economy, including the UK stock market. As investors continue to seek out alternative ways to protect their wealth, it will be interesting to see how this trend develops in the coming months and years.
Of course, we’ll follow up on the show as the story develops.
