Last week, the state of Oklahoma made it official — as of November 1st of this year, gold and silver will be legal tender. The Sooner State is the fourth (following Utah, Texas, and Louisiana) to affirm that gold and silver coins can be used as media of exchange.
Senate Bill 862, which Oklahoma Governor Mary Fallin signed into law, says: "Gold and silver coins issued by the United States government are legal tender in the State of Oklahoma. No person may compel another person to tender or accept gold or silver coins that are issued by the United States government, except as agreed upon by contract."
So, technically, you can't really use gold and silver to buy monthly groceries or pay off your car loans. However, what this new law does is it takes away the tax you would have to pay when you buy or sell gold. This is especially important to precious metal investors, because they cannot tax you for having gold and silver in your possession. It would be like taxing people for having a $20 bill in their pocket, which of course is absurd.
"With the Federal Reserve actively suppressing interest rates and eroding the purchasing power of the US dollar, it is welcome news to see one more state give its citizens free access to money that holds its value over time," wrote Bob Adelmann in The New American.
This law puts gold and silver on the same playing field as stocks. For example, if you bought shares of Google, you wouldn't be taxed on the purchase, only on the profits following a sale.
Oklahoma Sen. Kyle Loveless said, "This is a no-brainer. You wouldn't tax a currency. You don't tax the cash in your pocket." And we couldn't agree with you more, Senator.