Legally Pay Like a Pirate in Utah

You stump up to the counter with your peg leg and toss down a bag of gold coins to pay for your lunch. It is a moment out of the movies, but is it legal to pay in gold or silver coins in Utah?

Yes it is.

Believe it or not it is not legal in all states to use valuable metals to pay, but in Utah it is legal.

Does it have to be coins issued by the United States?

No. You can use bullion, coins, or bars. Valuable metal in any form can be used as legal tender.

Say you are watching a pirate pay his bill, you look up at the menu and see that the prices are marked in gold coin. Can the restaurant demand you pay in precious denominations?

No, unless the contract specifically was set up to be satisfied with gold or silver or bullion, seller nor buyer can demand that the precious metal be used.

Here are the rules.

Why did Utah decide to join Wyoming, Oklahoma and Arkansas, the only other states that have similar laws?

Well, it effectively takes the precious metals out of the realm of investment only and lets individuals and organizations, including the state to build value backed savings. Putting valuables on the same ground as money, also known as a federal note.

Why is this important? Remember learning about the gold standard? Basically, the federal notes had to be backed by something of actual equal value, like gold. It has been abandoned, but this law allows individuals and states to build value against the empty printing of money.

So, it has some valuable reasoning behind the motion, but in the meantime ye should be stocking up on yer doubloons and be shopping like a pirate.