Utah’s state house took a step toward allowing gold and silver to be accepted as cash, passing a bill that would recognize government-issued gold and silver coins for not only their face value, but the value given to the items by collectors. If the bill passes, the state would study the idea of establishing an alternative form of currency backed by silver and gold.

The Salt Lake Tribune reports the bill wouldn’t require people to accept gold and silver coins as money, and it would also exempt the sale of the coins from state sales tax as well as capital gains taxes.

A lawmaker who supported the bill did so out of fear that the dollar will collapse:

“This is a step in preparedness, a step in security,” Galvez said, “that allows us to be able to help hold up our economy as the dollar continues to shrink.”

The U.S. abandoned the gold standard in 1933.

Utah House stamps gold, silver as legal tender [The Salt Lake Tribune via AllBusiness]

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