The problem with this is that American Eagle gold coins are already legal tender at face value, under the power of Congress to coin money and regulate the value thereof.
So, Arizona does not need to do anything to make a one-ounce gold coin legal tender for $50, and they cannot increase its legal tender value under the supremacy clause.
I will sell you all the goods you want at $50/ounce.
I would also think there is nothing now in the law that prohibits barter. It sounds to me as if people think this is a way to avoid taxes (sales and income) in a transaction.
Congress can’t do jack squat about PMs, unless some foolish coin minter stamps “dollar” or the like on the coin.
If the coin just says, “One ounce fine gold” etc, it’s clear sailing. Under the AZ law, deals will be made in weights of PMs, period. The current value of PMs in dollars, or the value in dollars at a future delivery date, will be up to the private citizens making the deal. That is, the dollar value of PMs will change, but the deal will be “struck” so to speak, at an agreed-upon weight of the PM, no more, no less.
Makes sense to me, and it’s not hard at all. I’ve traveled in Mexican border and tourist towns, and with the help of simple calculators, it’s a snap to buy in pesos or dollars, and get change in pesos or dollars. The daily conversion rate for dollars to pesos is posted at the shop’s front door. If you don’t like the conversion rate, you go to the next shop, so the rates are kept very honest.
This is exactly how it will work when conducting business in PMs. Just look up the daily conversion rate of gold or silver in dollars (or any other currency) and strike an agreement in weight of PMs. If the currency / PM rate fluctuates, so be it. The deal was made in weight of PM, and that’s that.
There are one ounce bars of gold and even lesser fractions available for public to buy and use to barter with.
The problem is that as per the old aphorism, “Bad money drives out good”. You would find a big discount on paper money and the price of gold coins would increase dramatically.
Some businesses have tried paying employees in gold coins. IRS did not take “but we only paid them $50/week!” well.