Could gold & silver become currency in Florida? CFO Patronis supports the move

TALLAHASSEE, Fla. - Precious metals like gold and silver are not legal tender under current Florida law. If the state's chief financial officer gets his way, however, that could change.

Florida CFO Jimmy Patronis, who's also running for a vacant seat in Congress, is launching a study to help figure out how gold and silver could be used to buy goods and services in the state.

The study, which will be conducted by the Florida Department of Financial Services, will focus on physical gold and silver in the form of bars and coins.

FILE-Gold bullion bars are pictured after being inspected and polished at refinery in 2020. (Photo by DAVID GRAY/AFP via Getty Images)

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Why precious metals?

Supporters of making gold and silver legal forms of currency argue that precious metals serve as a viable alternative to the U.S. dollar and other "fiat currencies," or money that is not pegged to a physical commodity to determine its value.

"This is an exciting initiative that has the potential for enormous growth in our state. Gold and silver have been trusted assets for thousands of years, and it makes perfect sense to use them as legal tender," Patronis said in a statement released Wednesday.

The proposal includes certain tax exemptions, as well, including making sure gold and silver are not taxed as personal property.

Click here for the full announcement from Patronis.

The growing push for gold & silver

At one time, the U.S. dollar was under the "gold standard," meaning gold was used to back the federal currency. Gold has not been exchanged for U.S. dollars, however, since 1971, according to the Federal Reserve.

Since 2011, several states have passed legislation allowing gold and silver to be spent as legal tender. Utah was the first to do so, opening the door for other states including South Carolina, Louisiana and Oklahoma to approve similar measures.

What's the price of gold & silver?

As of midday Wednesday, gold futures were valued at $2,757 per ounce, near the all-time high reached in late October.

Silver was just shy of $33 per ounce on Wednesday. According to Nasdaq, silver's all-time record price was $49.95 per ounce in January 1980, although it soon crashed on what became known as "Silver Thursday."

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