Utah is the first state to now accept something other than the U.S. Dollar as legal tender according to ABCNews.com writer Huma Khan (April 14, 2011). Huma states that “More than a dozen other states are considering similar measures, and are expected to follow Utah's example. The move, proponents say, is caused by declining faith in the U.S. monetary system and concern about rising inflation.”
Back in January I posted a blog article (see here) about other states that were studying the options of using gold and silver instead of the U.S. Dollar. It looks like the dollar has certainly lost its luster. However, Utah isn’t saying that people would literally purchase items with gold or silver, rather that the Federal Reserve would have to make the dollar redeemable in gold.
The ABC news article quotes Lawrence H. White, a professor from George Mason University: “State lawmakers are "concerned about the future of the dollar, worried that [worse] inflation is coming," White said. "People need to have an alternative if the dollar melts down."
The article goes on to share that in February, J.P. Morgan Chase said it would allow people to use gold as collateral for their home mortgages.
I would suggest that if inflation continues as it has been (look at your gas and food bills of late), it will be cheaper to pay off your mortgages in the devalued dollar rather than purchase gold to pay off your house. That’s not to say you might not want to invest in some, possibly picking up some excellent returns on that investment along the way; or use it as a hedge, or insurance to protect your hard earned wages in something other than the falling dollar.
Oh where, oh where has my nest egg gone? Oh where, oh where can it be?