NEW YORK(BullionStreet) : Volatile dollar remained the major reason for growing numbers of States seeking gold and silver currencies.

Lawmakers from 13 states, including Minnesota, Tennessee, Iowa, South Carolina and Georgia, are seeking approval from their state governments to either issue their own alternative currency or explore it as an option.

Just three years ago, only three states had similar proposals in place.

Unlike individual communities, which are allowed to create their own currency-- as long as it is easily distinguishable from U.S. dollars -- the Constitution bans states from printing their own paper money or issuing their own currency. But it allows the states to make "gold and silver Coin a Tender in Payment of Debts."

Gold has grown exponentially more valuable, while the U.S. dollar continues to lose ground, the notion has become increasingly appealing to state governments, analysts said.

Utah became the first state to introduce its own alternative currency when Governor Gary Herbert signed a bill into law last March that recognized gold and silver coins issued by the U.S. Mint as an acceptable form of payment.

Under the law, the coins -- which include American Gold and Silver Eagles -- are treated the same as U.S. dollars for tax purposes, thereby eliminating capital gains taxes.

Since the face value of some U S minted gold and silver coins -- like the one-ounce, $50 American Gold Eagle coin -- is so much less than the metal value, one ounce of gold is now worth more than $1,700, the new law allows the coins to be exchanged at their market value, based on weight and fineness.

Minnesota, Iowa, Georgia, Idaho and Indiana are also considering similar proposals.

Many of the bills would make it possible for residents to exchange the physical coins for goods and services, so you could use coins to buy anything from groceries to a car as long as the store chooses to accept them.

However critics said most people aren't going to walk around with such valuable coins clinking around in their pockets and calculating the value of the coins especially if they come from different parts of the globe and are of different sizes and shapes will get tricky..