Lawmakers in the North Carolina House of Representatives have voted in favor of studying the benefits of having an in-state bullion depository.
House Bill 721, introduced by Rep. Mark Brody (R – 55), would prompt a study into how North Carolina could establish its own bullion depository to securely store the state’s physical gold, should it choose to make such an investment, was approved by the state House 73-40 in June. The bill first received a favorable report before the House State Government committee.
North Carolina is among the several states considering this policy. Missouri, Mississippi, and Oklahoma, are considering measures to establish their own bullion depositories, while Texas and Ohio have already obtained gold to protect state pension funds.
Recently, Tennessee Governor Bill Lee signed a law that allows the state treasurer to buy and store physical gold and silver, after it received unanimous approval from both chambers.
Meanwhile, like most states, North Carolina reserve funds have significant exposure to low-yielding debt paper – such as corporate bonds, municipal bonds, CDs, treasuries, and money market funds. These debt instruments may appear to have low volatility, but they carry other risks – including pernicious inflation and the steady erosion in real value of principal, coupled with interest rates that are negative in real terms.
North Carolina should prioritize exploring the advantages of establishing a gold bullion depository. Including an allocation to physical gold and silver aligns perfectly with the goal of safeguarding the state against financial uncertainties. The yellow metal would be a sensible addition to a responsible state's investment portfolio. Precious metals serve as a safeguard against inflation, the risks of debt defaults, and stock market downturns – and historically, they have enhanced investment returns while also reducing volatility.
H 721 now awaits a hearing before the Senate Rules and Operations committee.
Related bills to restore sound, constitutional money have also been introduced this year in Alaska, Iowa, West Virginia, South Carolina, Maine, Missouri, Minnesota, Tennessee, Montana, Idaho, Wyoming, Kansas, and more.
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Jp Cortez is the Executive Director for the Sound Money Defense League, a non-partisan, national public policy group working to restore sound money at the state and federal level, and lead author of the Sound Money Index.
