The state of Arizona is reportedly considering a way to monetize gold in an effort to counteract the world of negative interest rates and lack of yield. The state recently set up a committee to examine the possibility of issuing treasury bonds that would be payable in gold.
Dr. Keith Weiner, the founder of Monetary Metals Inc. and committee member, discussed the potential role such a bond might play. Mr. Weiner is of the opinion that such a bond could benefit not only the state of Arizona but the U.S. monetary system as well.
He stated: “Thanks to the Fed’s monetary policy, investors basically earn zero interest rates. A gold bond is a way for people to get a real rate of return. People are urgently seeking a way to make a yield on gold. I think Arizona will draw the world’s attention and it will draw capital inflows.”
Mr. Weiner went on to further discuss the potential benefits of a gold bond. He believes that such a bond could potentially reduce the state’s debt, by specifying that the gold bond be issued to investors who exchange outstanding traditional state bonds.
Of particular interest is the notion that Arizona would not be required to build up large reserves of gold bullion before issuing such bonds. Mr. Weiner believes the state could issue such bonds based on gold flows driven by tax revenues.
It is also worth noting that the state of Arizona is one of the largest gold producers in the United States, and the state is currently in the process of recognizing gold and silver tender.
The potential move to gold by Arizona is simply another powerful example of the inherent value of this key precious metal.
It would not be at all surprising to see a larger-scale move to gold by additional states and more foreign nations. In fact, we believe the only question is when.
Paper currencies decline in value over time, and the clock is ticking. Not only that, but potentially unsustainable debt levels could also drive a massive currency debasement, eroding purchasing power even further. Why sit around and watch your money go up in smoke?
If global central banks and even individual states recognize the power of gold, shouldn’t you?
If you do not currently own any physical gold, now may be the ideal time to begin building a significant holding of this precious metal. Doing so has never been easier than it is today.
Speak with an Advantage Gold account executive today to learn more about the potential benefits of physical gold ownership and the role this precious metal may play within your overall investment strategy. Our precious metals professionals can even show you how to acquire and hold physical gold bars and coins within your IRA account.
Don’t wait for another stock market crash or for the value of your hard-earned dollars to decline further. Explore your options now. Call us today at 1-800-341-8584 to get started.Tags: advantage gold, arizona, gold, gold bonds, negative interest rates, silver, tax revenue