Tax on Gold is a Tax on Money

Mark Finchem wants to eliminate the state capital gains tax on gold coins. Article.
Finchem's argument is as follows:

1. The establishment of the Federal Reserve System in 1913 gave it the power to control the size of the money supply in the form of either printed federal reserve notes or bank ledger entries.
2. The FRS seeks to increase the supply of money by about 2 or 3% per annum, believing that this must be good for the economy.
3. Economics tells us that when the supply of something increases, its price goes down.
4. When the price of money goes down, people experience a decrease in the purchasing power of their money.
5. Ownership of gold, whose price can't be controlled by the FRS, is a way of maintaining one's purchasing power.
6. The state capital gains tax, when applied to gold, prevents Arizonans from using this valuable tool to preserve the purchasing power of their savings.

According to the article, Rep. Ken Clark, D-Phoenix, claimed that "people buy gold coins in hopes of making a  profit." This is not necessarily true. People may buy gold simply to try to protect the purchasing power of their savings from the intended bad consequences of the Federal Reserve System.