♫Silver and Gold♫

[Digit]

The answer to Question 75701 is interesting, noting the legal tender of gold and silver as currency. I found this article (though it's about a year old) in which the columnist states:

Retailers still will not be forced to accept gold and silver, according to the bill. Instead, Utah made it acceptable to use it as an alternative currency for willing buyers and sellers. As a result, many gold bugs may find it hard to use gold and silver on a daily basis.

Well, if you've legalized the currency, but not forced retailers to accept it, what's the point? Bartering between willing buyers and sellers has been legal before this bill existed, no?

[Marduk]

My understanding was that it meant that a specific value was attached to silver and gold, so a set price point would mean a set amount of silver or gold; no bartering needed.

[Digit]

Don't traders on markets have a reliable place for the value of gold, from second to second, at least?

[Marduk]

Which fluctuates far too much. The idea is that placing a legal standard for it makes the price more stable. (I certainly am not the expert on this.)

[Digit]

Any day or hour that rate were better than what the rest of the country/world uses, I could imagine the brokerage firms with branches within that state's boundaries suddenly routing their transactions through those branches.

Edit: Moot idea due to post below.

[Digit]

Here's something discussing the exchange rate issue:

the Treasurer is to take market conditions into account in setting rates and those rates would only apply to transactions to which the state is a party. All other Utahns are free to set a mutually agreeable rate for their own transactions.

Regarding individuals agreeing on their own exchange rates, it sounds like it's right back to bartering.