Wyoming’s Push for “Sound Money” - A Summary
This article details Wyoming’s efforts to embrace “sound money” principles, primarily through the use of gold and silver. Here’s a breakdown of the key points:
Wyoming’s Actions:
* Wyoming Gold Act: Requires state reserves to be held in gold.
* Wyoming Tender Act: Removes sales taxes on purchases of gold and silver bullion (coins and bars).
* Attracting Business: These laws have attracted businesses like Scottsdale Mint, who chose Wyoming due to its favorable precious metals regulations and prospect zone status.
* Mineral Trust Fund: The state’s Mineral Trust Fund is ample, and some believe it could rank among the top 20 sovereign wealth funds globally if officially recognized in this very way.
* Stable Token: Wyoming is also exploring the creation of a new stable token.
Arguments in Favor (from Phair of Scottsdale Mint):
* Strengthens Financial Foundation: Holding gold strengthens Wyoming’s financial future.
* Sovereign Wealth Fund Potential: The Mineral Trust fund is a significant asset.
Concerns & Opposition:
* Treasurer Curt Meier’s Concerns: Holding gold is a “double-edged sword.” While it can provide stability during inflation, it doesn’t generate income unless sold. This reduces funds available for the state’s General Fund,which relies heavily on investment income.
* Governor Mark Gordon’s Concerns: Views gold as a commodity/store of value, not an investment, and income is only realized through sale.
* Lost Investment Opportunity: Funds tied up in gold can’t be used for potentially higher-yielding investments.
In essence,Wyoming is experimenting with a more conservative financial approach by incorporating precious metals into its reserves,but this approach isn’t without its critics who point to potential drawbacks regarding income generation and flexibility.
