A Handful of Gold Owners Who Need Their Heads Examined

Looks as if Arizona will become the second state to repeal capital gains taxes on precious metals.

Yesterday, the House passed a bill designating gold and silver coins — both government- and privately issued — as legal tender. The Senate has already passed a similar bill, so it won’t be long before the measure hits Gov. Jan Brewer’s desk.

Utah became the first state to take the step last year, although its law applies only to U.S. Gold and Silver Eagles.

 “Similar bills are advancing in Kansas, South Carolina and other states,” according to a Bloomberg report.

“The legislation is about signaling discontent with monetary policy and about what Ben Bernanke is doing,” says Loren Gatch, a poli-sci professor at the University of Central Oklahoma.

But aside from the tax break, the practicalities are proving a challenge: “In Utah,” Bloomberg’s article points out, “officials haven’t yet figured out how to accept gold and silver for tax payments — though some residents have asked to pay that way — or integrate the precious metals into commerce, state Treasurer Richard Ellis said.”

[We’ll afford you a moment to pause and allow that to sink in…]

Dave Gonigam

We really want to meet these people who are willing to part with precious metals at current prices and send them to the state government.

Perhaps we can organize an intervention…

The Daily Reckoning