Lawmakers Introduce SILVER Act to Boost US Precious Metals Storage Sites

US lawmakers introduced the SILVER Act to establish regional precious metals depositories. The Silicon Review reports on the bipartisan push to diversify storage sites beyond Fort Knox and West Point.

A bipartisan group of lawmakers has introduced the Strategic Investment in Local Value and Economic Resilience Act, known as the SILVER Act, to establish regional precious metals depositories across the United States. The bill seeks to diversify storage sites beyond Fort Knox and West Point.

The gold and silver investment bill would direct the Treasury Department to open at least four regional depositories with preference for states that have active mining operations. Eligible states include Nevada, Alaska, Colorado, South Dakota, and Montana. The depositories would be administered by the US Mint.

The legislation responds to growing demand for physical precious metals storage from retail investors, pension funds, and state treasuries. Current capacity at Fort Knox and West Point is limited, and private storage facilities charge annual fees that reduce investor returns.

The SILVER Act would require depositories to accept gold and silver bullion for storage, allow in-kind withdrawals of specific bars rather than cash equivalents, and provide audited annual reports to Congress. The bill prohibits the Treasury from leasing stored bullion to third parties.

The bill has drawn support from the mining industry and precious metals advocacy groups. The National Mining Association estimates that each regional depository would create 50 to 75 direct jobs in rural communities. The depositories would also stimulate local economies through construction and ongoing operations.

The bill faces questions about funding and feasibility. The Treasury estimated that establishing four regional depositories would cost approximately $400 million upfront. The bill proposes to fund these costs through a combination of appropriations and user fees for storage services.

By the fourth quarter of 2027, the first regional depository could be operational if the bill passes in its current form. The Treasury would be required to report to Congress on site selection and construction timelines within 180 days of enactment.

The Silicon Review's analysis indicates that the SILVER Act reflects growing institutional interest in physical gold and silver as portfolio diversifiers. While regional depositories make sense for logistical diversification, their economic case depends on utilization rates that remain unproven.

Q: What is the SILVER Act?
A: The SILVER Act is a bipartisan bill to establish regional precious metals depositories across the United States, diversifying storage beyond Fort Knox and West Point.

Q: Which states would be eligible for the new precious metals depositories?
A: Eligible states include Nevada, Alaska, Colorado, South Dakota, and Montana, with preference for states that have active mining operations.

Q: How many regional depositories would the SILVER Act create?
A: The bill would direct the Treasury Department to open at least four regional precious metals depositories across the United States.

Q: How much would the regional depositories cost to establish?
A: The Treasury estimated that establishing four regional depositories would cost approximately $400 million upfront, funded through appropriations and user fees.

Q: How many jobs would each regional depository create?
A: The National Mining Association estimates that each regional depository would create 50 to 75 direct jobs in rural communities, plus additional indirect jobs through construction and operations.

Q: When could the first regional depository be operational?
A: By the fourth quarter of 2027, the first regional depository could be operational if the bill passes in its current form.