The once and future king - the return of gold as legal tender

Those who are informed will tell you that the USA Federal government will soon go bankrupt. The debt has reached escape velocity and can never be repaid. The interest alone is approaching $1 trillion a year. Bankruptcy is inevitable within a few years.

This may be why individual states are officially making gold and silver legal tender once again.

Gold's rise as a medium of exchange stems from its intrinsic properties: it is fungible, divisible, portable, and resistant to counterfeiting. Unlike fiat currencies, which can be printed at will, gold's supply grows slowly—about 1-2% annually through mining—mirroring sound money principles.

What happened to the old USSR might happen to the USA. Those once united states will no longer have a federal overlord and they will break away into separate independant regions, perhaps 12 in number.

As of mid-2025, 11 states officially recognize gold and silver as legal tender, including Utah (the pioneer in 2011), Louisiana, Texas, Kansas, Oklahoma, South Carolina, Wyoming, Missouri, and others. Florida joined this list recently, and bipartisan laws in states like Missouri and Texas aim to facilitate gold transactions by eliminating sales taxes on precious metals and establishing state depositories.

This prediction of collapse of the federal government and balkanization of USA is not my idea. Retired high court USA judge Andrew Napolitano explains it clearly in this YouTube video interview.

The coming collapse of USA

This economic collapse of USA was inevitable when President Nixon took his nation off the gold standard in 1971, allowing the Fed to print fiat money with no backing by gold.

Based on pure math, it was only a matter of time before mass money printing led to a weaker dollar, by purchasing power, as inflation went rampant.

The dollar is a ponzi without gold

The USA financial system has been a ponzi scheme of sorts since then. The entire USA financial power is a lie. And that overall weakness in their system is about to cause it's collapse within the next few years.

At best they can officially devalue the dollar. A weaker dollar will make export more profitable. It will also make the debt cheaper to repay. China deliberately keeps their currency weaker than it should be.

Revaluing gold higher

Other than that, gold may be revalued higher in coming years. There is a small elite group of people who can simply decide how much an ounce on gold should be worth. And they used to do this daily for years in the banking system. Currently around $3200 per ounce, gold could easily be instantly repriced at anything between $5 000-15 000 per ounce. That might facilitate their debt repayment.

If the USA does go bankrupt and states break up into independant regions, they will use their gold reserves as currency and it will be like pre civil war era all over again, with all its problems.

Over 22 other states are also looking into making gold legal tender so this is a huge gold wave covering the USA, not just a trickle. It could totally change the entire financial playing field.

This revival and revaluing of the gold standard could be historic. And it's long overdue. When President Nixon took away the Bretton Woods good standard, he did it because USA was already about to go bankrupt back then in 1971. They did not have the gold to back every dollar.

Yet that closure of the gold window was meant to be temporary. What a lie. For basically my entire lifetime we have been waiting for normalization. It never came. Now the scam is being exposed as bankruptcy looms once again.

BRICS gold backed unit

Another competing factor is the mass accumulation of gold by BRICS nations, like China and Russia. In total BRICS nations gold is about 20% of the world gold reserves. Central banks in these countries purchased 166 tonnes of gold in Q2 2025 alone, a 41% quarterly increase.

As they pursue de-dollarization, and consider introducing a gold backed BRICS currency called the unit, it will put more pressure on a collapsing dollar. This may be what this entire global war is all about right now. It's the last attempt of USA to cling to its global petro-dollar dominance.

At this rate, USA has less than a decade before it goes bankrupt and its federal economy collapses as it defaults on its debt, can't pay wages and thus scares away investors like China, who are already dumping US treasuries.

The clock is ticking and gold is waiting in the wings for its time to shine.

Image: https://pixabay.com/photos/gold-coins-bullions-gold-bars-8218390/