We just sent this to the sponsors of the Oklahoma bill ( http://www.oklegislature.gov/BillInfo.aspx?Bill=sb862&Session=1400
) to legalize and clarify taxation of gold and silver coins as money. What do you think? Is this sort of action worthwhile? Could it have been written better?
Good Morning gentlemen!
I have a small concern with SB862 I would like you to consider. It might not be a real issue in practice, but on an initial reading of the bill I think it is worth considering.
I manufacture and sell an alternative currency that is based on silver and gold. It uses pure precious metal, embedding it into credit card sized units, making it significantly easier to use in everyday trade than traditional bullion or U.S. Mint coins. One of my cards, the twentieth gram gold card, is the world's smallest physical gold trade unit, which trades currently at $4. You can learn more at https://shiresilver.com
My main concern is that my cards are typically traded at a value above the spot price of their metal content. The added value of the convenience factor, in my opinion as well as that of many of its users, is that this added value deserves pricing above spot. Therein lies the issue - your bill appears to not apply to precious metal based currencies whose transactions are made at prices above spot.
My concern might be misplaced, and Shire Silver might be covered under other alternative currency laws or regulations, but I did want you to be aware of it and if indeed this is an issue then can it be addressed?
Thank you for promoting a return to the practical use of sound money.