Private Contract & Court Enforcement via your country’s respective Legal Tender Laws

I tend to prefer U.S. bullion coinage (Eagle and Buffalo coins) as I am a U.S. citizen and they are legal tender in my country. By having legal tender U.S. bullion coins, it gives me the right to explicitly use their face values in private contracts of sale or purchase so long as I find a willing counter-party. Now of course the IRS will want their cut of any capital gains made based on the metal content’s value appreciation and not their face value (but don’t ask me or take my word for it, ask your professional tax advisor).

I simply want the option of being able to buy assets outright, making certain the contracts are notarized and court enforceable, for no one knows how things will go here politically. The legal tender option and the privacy these American bullion coins afford me (they are IRS 1099 dealer reporting exempt), to me it is worth the premium they carry compared to generic non-legal tender bullion.

We already see a trend of U.S. states like Utah, Oklahoma, and Arizona reasserting their state’s rights declaring silver and gold Constitution forms of money within their jurisdictions. Who knows, maybe someday you’ll be loaning your silver and gold Eagles to the bank for a nice loan on your business or enterprise, once paid off, you still have your bullion and your business was easily capitalized thanks to your bullion coin stash.

Given how crazy the third phase of this bull market may become, the spectrum of possibilities is rather open. I like legal tender for it may afford me options which generic bullion might not.

The next article in our Beginners’ Guide to Buying Physical Bullion will discuss the best ways to transport bullion.

» Cheapest Customs Duties / Easier International Transport

All Market Updates are provided as a third party analysis and do not necessarily reflect the explicit views of JM Bullion Inc. and should not be construed as financial advice.