As expected, remonification of gold and silver are happening.

I've reported several times before in posts like this one from 2012 that the eventual remonification of gold (and silver) are givens.  The process will be gradual, just like the demon-ification (ha ha) of gold and silver from our money supply occurred over a number of years.  At one point we used to have gold and silver as money and Article 1 section 10 of the constitution even says that, "No State shall enter into any Treaty, Alliance, or Confederation; grant Letters of Marque and Reprisal; coin Money; emit Bills of Credit; make any Thing but gold and silver Coin a Tender in Payment of Debts; pass any Bill of Attainder, ex post facto Law, or Law impairing the Obligation of Contracts, or grant any Title of Nobility.".

Well, states didn't do it; the con men running the federal government did it and states went along with it as long as the con seemed to be working.  Over time, the gold coins were removed from the money supply and replaced with dollars that were supposed to represent the gold.  In 1964 silver coinage was placed under siege by the con men as silver content plummeted from 90% in 1964 to only 40% in 1965.  The unwitting population at large will at some point figure out that JFK had to be eliminated in order to enable that to happen. At that point, the message was sent loud and clear: don't get in the way of the bankster coup of the USA.  Allow them to push us into their fiat currency enabled debt Ponzi or pay the price. 

It was with wry recognition of this fact that reluctant but complicit con man Tricky Dick Nixon said "I am now a Keynesian/We're all Keynesian now" in conjunction with the closing of the gold window and the effective de-linking of Federal Reserve Notes from anything tangible.  This effectively defaulted on the contract whereby dollars would be backed by gold.  It was not long after that all silver was removed from all new coins.  Since then, gold and silver have been called "commodities" and treated as such by every con man in the game.

But gold (and partially silver as well) are not commodities.  They are money.  I've explained it several times in these pages like in this post.  Bottom line is that while the fiat currency scam was on the rise, it was convenient to paint gold as a commodity.  It was easier to control like that and you could actually tax those who were belligerent enough to try to store their long term retirement money in physical gold.  But those days are ending because the fractional reserve lending scam is entering the collapse stage and when it goes boom this next time, people will demand change.  It is simply too difficult trying to live and plan a normal life and a normal retirement when restricted to using a pump and dump money supply.  At some point businesses will list gold on their balance sheets at least to some degree as they used to in the past.

Today's new proof of this coming reality is that Oklahoma just joined other states (as shown on the map here) in passing legislation proclaiming that gold and silver coins are legal tender.  While it may sound like a quaint gesture to the uneducated masses, it is a bigger deal than it seems.  The main reason for this is that it removes taxes from the conversion of (purchase and sale) gold and silver coins into and out of our fiat currency.

When commodities are sold, any inflation gains have to be reported to federal and state taxation authorities as capital gains.  So if you choose to store your wealth in bushels of wheat and then the dollar subsequently is debased, the resultant higher prices for wheat are declared capital gains which you have to pay taxes on.  Even though the buying power of the dollars received in trade for your wheat has been diminished, you are still penalized by the law for having been so arrogant and belligerent and "un-American" as to store your wealth in some other form than government-controlled dishonest money.

Making gold and silver coins legal tender eliminates this taxation at the state (income tax) and local level (sales tax). So now, at least in these states that are returning to honest money, you can transfer your wealth between gold, silver and dollars at will without any consequence of state taxation in the same way that changing a $20 bill for a ten and two fives does not generate a taxable event. Of course, the a$$holes at the IRS still want you to pay them capital gains but hey, one a$$hole government organization at a time, right?  Besides, if you are 10+ years or more from retirement then fear not because within that time the federal government will also have to fall into line and declare gold and silver coins legal tender.  They won't want to but the voters will force them to.  It's all part of the coming pendulum swing back toward conservatism.

And so here is the real importance of this growing trend: if the people ever fear that the money is becoming worthless they now have the option of storing their long term wealth in gold and silver coins without fear that doing so will just allow government to apply retrograde debasement to their wealth in the form of state and local taxes when the coins are converted back into paper money in order to buy things at the store.  For anyone with enough wealth to store, this is huge.  It means that retirement accounts that are kept in gold and silver coins cannot be taxed 20 years down the road when gold is $10000/oz because the dollar has committed hari kari (as all paper money eventually and without exception in history always does).

The elimination of monetary metals taxation is also a clear statement that these metals are not in fact commodities but rather money.  Of course, they always were money, its just that the false prosperity of a dishonest money supply caused most people to ignore the fact.  In the future, people looking back in history will wonder and laugh how top eCONomists of our century were allowed,with a straight face and in front of the world, to drivel on about gold being a "barbarous relic".  Barbarism is supposed to be the absence of culture and civilization.  Gold was therefore the enemy of these things. 

But you have to consider who talks about culture and civilization like that.  Think about it.  What kind of people think they are so cultured and civilized, looking down upon the working class as if we were subhumans?  What kind of people refer to the general population as "useless eaters"?  That's right, the liberal, socialistic elite.  Gold is an attack on their fraudulent money scam and thus on their ideas of culture and civilization (which obviously only apply to themselves and not the average producer on main street). The remonification of gold and silver is in fact an attack on their control over the rest of us which could not be possible without the scam-ridden dishonest money supply consisting of fiat currency and fractional reserve banking.  Without the funny money to support them, they will fall from grace very rapidly and have to actually work for a living.

The return to gold and silver as legal tender is clearly a conservative move and completely inline with my views and my models that a long 80-100 year cycle of growing liberalism has now peaked and we shall see it in increasing decline for many years to come.