Is There a Gold Depository in Utah?
Smith and Edwards store, an enormous 7-Eleven from the Old West, will accept gold and silver coins as payment for purchases as Utah became the first state to recognize these precious metals as legal tender.
Investing in precious metals can provide protection from inflation and counterparty risk. A state depository can serve as a secure location to store these assets; under Utah state law, this could allow the treasurer to do just that.
History
Utah’s rich history includes an important discovery: precious metals. Utah was the first state to legalize US-minted gold and silver coins as legal tender, exempting them from sales tax – making it easier for private investors to purchase and hold precious metals.
Mormon settlers arrived in Salt Lake Valley in 1847. While initially interested in mining for materials to build their new communities, they soon turned their focus toward farming and ranching instead. Over time however, their efforts paid off when they began prospecting for precious metals; ultimately the mining effort brought forth significant success.
Utah’s nonferrous metal mining industry began with silver-lead and copper deposits. Utah miner produced zinc before it became profitable as an offcut of copper mining operations.
Taxes
As the economy falters, more people are looking for ways to diversify their wealth besides stocks or bonds; precious metals seem an appealing alternative – but will owning gold or silver get taxed differently than owning an average 401(k) or mutual fund?
Utah does not impose capital gains or sales taxes on precious metal sales thanks to its Legal Tender Act of 2011.
HB 224 goes one step further by encouraging residents to use precious metal coins as money, expanding the definition of legal tender to include private gold bullion from recognized and regulated mints, and making possible private currencies such as Utah Goldback which could be used at local businesses and exempted from state sales taxes if kept in a polymer holder. It’s yet another step toward breaking up the Federal Reserve’s monopoly over money, though that won’t happen overnight – until that day comes it’s wise to consult a professional tax advisor regarding how owning precious metals could benefit you personally.
Security
Gold has long been recognized as a reliable store of value. Central banks are increasing their holdings of this precious metal to reduce dependence on the US dollar and diversify their assets – signalling an interest in moving away from an increasingly disenchant currency system. This growing support for sound money signals that people want to pursue alternative modes of monetary system more widely.
Utah has long been considered a leader in sound money initiatives. In 2011, Utah adopted the Specie Legal Tender Act which recognized gold as currency and removed state sales taxes on precious metals while affirming that federal governments do not dictate definitions of money in America.
As a result, Utah Goldbacks were born. Their flagship product is an innovative local currency backed by precious metal; an estimated 50 percent of small business owners accept Utah Goldbacks.
Reliability
Utah Goldbacks are a form of voluntary physical gold currency which can be used as currency. They represent an indestructible and tangible representation of wealth in an unstable global marketplace where currencies often fluctuate.
They come equipped with numerous benefits, including no buy/sell spreads and low vaulting costs, with membership dues and account fees only costing several dollars monthly – making them easily affordable options.
The United Precious Metal Association (UPMA) is a cooperative that operates non-profit. Partnered with Alpine Gold Exchange since 1999 and considered one of the largest depositories outside New York City; offering segregated and commingled storage options backed by $1 billion all-risk insurance from London underwriters, Alpine Gold Exchange provides vaulting services for members.
Brink’s is an established cash transport and vault services provider with advanced security measures in its vaults, providing secure cash transport across a network of locations around the United States and Switzerland. Brink’s has presences in Salt Lake City, Dallas and Singapore to offer these services.
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