North Dakota bill mandates state treasurer invest in gold and silver funds

The North Dakota State Legislature convened on January 22, 2025, to introduce House Bill 1183, a legislative proposal aimed at diversifying state investments by mandating the allocation of at least one percent of state treasury funds into gold and silver. This bill, sponsored by a bipartisan group of representatives and senators, seeks to create a new section in the North Dakota Century Code that outlines the management and investment strategies for these precious metals.

The primary provisions of House Bill 1183 stipulate that the state treasurer is responsible for investing a minimum of one percent of all state funds, including the general fund, in gold and silver. These investments can be held as bullion or coins in secure facilities or managed through qualified custodians and exchange-traded products. Furthermore, the bill allows the state treasurer to contract services to assist with these investments and mandates the development of policies for their management.

A significant aspect of the bill is the requirement for the state treasurer to conduct a study during the 2025-26 interim period. This study will evaluate the costs and benefits of investing in gold and silver, particularly in relation to inflation and economic stability. The findings and recommendations from this study are to be reported to the legislative management by June 30, 2026.

Debate surrounding House Bill 1183 has highlighted concerns regarding the volatility of precious metal markets and the implications of diverting state funds from traditional investments. Proponents argue that investing in gold and silver could serve as a hedge against inflation and economic downturns, potentially safeguarding state assets. Critics, however, caution against the risks associated with such investments, emphasizing the need for careful consideration of market fluctuations.

The economic implications of this bill could be substantial, as it represents a shift in investment strategy for state funds. If successful, it may set a precedent for other states considering similar measures. The political landscape surrounding the bill reflects a growing interest in alternative investments as states navigate economic uncertainties.

As House Bill 1183 progresses through the legislative process, its outcomes will be closely monitored by stakeholders interested in the financial management of state resources and the broader implications for economic policy in North Dakota.