"Gold bugs," or advocates of acceptance of the precious metals as legal tender, had their way when governor Gary Herbert signed the legislation into law late last month.
"The intent would be to see where a gold or silver coin is valued at its market value instead of its face value," said Brad Galvez, a Republican state legislator in Utah who presented the bill that was ultimately approved. "This allows the people of Utah to protect their assets against what we're seeing in inflation and the devaluation of the dollar."
However, the true reason behind the law is angst and anxiousness over how the U.S. central bank is handling the recovery from the economic recession, according to finance professor Steve Wyatt of the Miami University of Ohio.
"What's really happening here is that this is the consequence of people becoming more concerned with extreme monetary expansion on the part of the Fed," said Wyatt, a faculty member at the Farmer School of Business.
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