Tuesday, January 22nd 01:01 PM IST

Precious metals act : More US states may follow Illinois

# US gold  # Illinois  # Precious Metal Purchasing Act  

The Illinois Government, by initiating the act desperately wants to monitor gold purchases amidst inflation and a growing lack of confidence in the dollar.

CHICAGO(BullionStreet): More states in the U.S might follow Illinois in initiating the "Precious Metal Purchasing Act" amidst a growing lack of confidence in the dollar, analysts said.

They said this is the kind of stuff that all governments do when they become financially desperate.

However, they said the governments first need to convince the people that registering precious metals transactions wouldn't be used for many nefarious purposes including potential confiscation.

They reminded the incident in 1933 when president Franklin Roosevelt issued an Executive Order to confiscate the gold of the American people. It was subsequently forbidden for Americans to own monetary gold for nearly.

They added that governments want record of precious metal purchases as more investors and citizens turn to gold to protect their purchasing power and wealth against a rising money supply.

The Illinois Government, by initiating the act desperately wants to monitor gold purchases amidst inflation and a growing lack of confidence in the dollar.

As per the act the Attorney General may inspect records, investigate an alleged violation, and take action to collect civil penalties.

A person who is in the business of purchasing precious metal shall obtain a proof of ownership, create a record of the sale, and verify the identity of the seller. Provides that a person who is in the business of purchasing precious metal shall not pay for the precious metal in cash and shall record the method of payment. Requires the purchaser to keep a record of the sale for one year or, if the purchase amount is over $500, for 5 years, the act said.

This means that, if passed into law, one would have to keep a 5 year record after purchasing a third of an ounce of gold.

The bill is expected to easily pass with the Democratic super majority now in place in Illionois.

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