Utah has become the latest state to explicitly allow its treasurer to invest a portion of state funds in physical gold and silver bullion. Governor Spencer Cox recently signed House Bill 348 into law, permitting up to 10% of certain state reserve accounts to be held in the monetary metals.
The new law applies to the State Disaster Recovery Restricted Account, General Fund Budget Reserve Account, Income Tax Fund Budget Reserve Account, and the Medicaid Growth Reduction and Budget Stabilization Account. Previously, Utah’s reserves were invested almost exclusively in corporate bonds and banking securities, exposing the funds to risks like inflation and counterparty default.
“By allowing investment in gold and silver, Utah is better equipped to protect taxpayer funds against inflation and financial turmoil,” said Rep. Ken Ivory, chief sponsor of the bill.
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The new law also requires the state treasurer to ”conduct a study analyzing the role of precious metals in augmenting, stabilizing, and ensuring the economic security and prosperity of the state.” The study, along with recommendations for further legislation, is to be submitted to the Revenue and Taxation Interim Committee by October.
Last year, Texas Republican Rep. Mark Dorazio introduced similar legislation but it died in committee. Meanwhile, legislation to allow precious metal investments is currently under consideration in Missouri, Tennessee, Idaho, and West Virginia.
Information for this story was found via Mises Institute, and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
