While modern gold coins are still legal tender, they are not used in everyday financial transactions, as the value of the metal usually exceeds its nominal value. The capital gains tax makes it inconvenient to use gold and silver as currency. We should repeal the capital gains tax on gold and silver. If the paper dollar better serves our modern economy than gold, people will continue to choose that dollar.
Most economists, especially Nobel Prize winner Paul Krugman, are opposed to any form of gold standard. They think that simple paper money is good for us and that gold won't work. However, even without coercive laws, people choose cars over horses and mobile phones over telegraphs. There is no need to force people to do what is good for them.
Gold is the metal we'll turn to when other forms of currency don't work, which means that gold will always have value in both difficult and good times. These laws have eliminated the sales tax on gold and silver coins, which is a great first step. This can happen even if states don't pass laws making gold and silver coins legal tender because of their real market value, since companies are more likely to accept gold and silver coins rather than a collapsing currency. We recommend avoiding little-known gold and silver coins, as well as unmarked silver bars and ingots, as they are likely to be less recognizable and liquid than the items mentioned above.
Keynes predicted that the attempt by European countries to return to the gold standard after the First World War would trigger a recession. States have the constitutional question that they can only recognize gold and silver “coins”, meaning someone else sets the nominal value. Since others believe that gold has value, so do you; and because they think you value gold, others also value it. Some states have already passed legal tender laws for gold and silver, including Utah, Arizona, Texas, Oklahoma and Louisiana.
But if society agrees to convert gold into currencies and into a system of exchange for goods, then that currency would assume instant value. This figure was so far above the fair value of gold that the United States was able to hold it for 37 years, until August 15, 1971, when Richard Nixon decided to completely abandon the gold standard instead of revaluing it. If the modern paper money economy collapsed, gold may not have an immediate use, as panic takes hold and people fight for their basic needs, but eventually they will. The truth is that gold is not a currency because it does not meet the economic definition of “currency” and will never be able to do so in the modern world.
In addition, there are many other gold and silver coins that are available, such as Canada's Maple Leafs and South Africa's Krugerrands. Perhaps gold's physical ability to absorb light causes its special brilliance to literally come from within. These underground markets are unlikely to accept the currency that is in the process of collapsing, making gold and silver currencies likely candidates for such transactions. It can be safely said that gold and silver coins will be in demand in some form or form after a monetary collapse.