Under the law, the coins — which include American Gold and Silver Eagles — are treated the same as U.S. dollars for tax purposes, eliminating capital gains taxes.
Is the US dollar backed by gold and silver?
Of course, Federal Reserve Notes, the U.S. paper currency, are not backed by gold and silver. However, since 1986, the U.S. Mint has issued American Gold Eagle and silver bullion coins in various denominations and designated them legal tender for payment of debts.
Is it legal to use gold as a currency?
To the state legislators who are proposing state-issued currencies, that means gold and silver are fair game, said Edwin Vieira, an alternative currency proponent and attorney specializing in Constitutional law.
