State of Nevada to expand upon gold and silver recognition as money by introducing a gold bearing bond

This question is the real reason why holding your wealth in gold is crucial in an environment where the purchasing power (value) of our nation's primary currency has declined to the point where it is only worth about 4% of its original value.

So with this in mind, one state in the list of states that have re-legitimized gold and silver as money is looking towards taking the next step by proposing legislation that would allow individuals and businesses to invest in a state held bond which would pay them their proceeds not in dollars, but in physical gold.

For many investors gold’s biggest problem is that the precious metal does not provide a yield. However, one Nevada lawmaker is hoping to change that. 

Earlier this month, Nevada Assemblyman Jim Marchant introduced legislation, proposing to create a Nevada gold bond that offers a yield in physical gold. 

“The idea behind this bill is to promote the idea of honest money,” he said in an interview with Kitco News. “Our currency loses 2% of its value and its purchasing power every year and I see that as a problem. I see my constituents investing in paper-backed Nevada bonds losing money and I want to help them get out of this hole,” he said. 

Marchant explained because of Nevada’s rich gold deposit, the state is in the perfect position to create these yield-bearing precious metal bonds. According to state officials, Nevada was the top gold-producing state in the U.S. and was fifth in worldwide production.Kitco

Think about this.  Not only could individuals replace investing their money in a negligible yield bearing instrument like a CD, but mining operations could coordinate with the State of Nevada to sell bonds as a means to acquire capital and pay back investors with their mined output.

Gold satisfies the old adage that goes, "I'm not worried about a return on my investment, but rather the return OF my investment".  And since the value of the dollar in today's credit and debt system continues to decline, even holding pat in gold without any yield is a positive outcome over simply holding your wealth in cash.