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Senate advances Wyoming Gold Act after hour‑long debate on storage, costs and investment role
Summary
Senate File 96, the Wyoming Gold Act, was advanced by the Senate Committee of the Whole after debate over a $10 million minimum purchase of precious metals, storage and insurance costs, whether the purchase is an investment or an insurance policy, and whether the state treasurer already has authority to buy gold.
The Wyoming Senate on Jan. 29 moved forward with Senate File 96, the Wyoming Gold Act, which would direct the state treasurer to hold not less than $10 million in specie and specie legal tender in the Permanent Mineral Trust Fund and requires a study of how precious metals might augment the state's reserves.
Senator Ayde, speaking on behalf of the bill, said the measure was scaled down from earlier versions and is intended as a modest hedge: "The primary concern here is just what it says ... for the purpose of diversifying the state's investment portfolio, preserving capital, and ensuring against inflation." He said the bill directs the treasurer to adopt rules, may allow leases or bonds payable in precious metals if market conditions warrant, and calls for a study to be submitted to the Joint Revenue Committee.
The $10 million floor was debated on the Senate floor. Senator Ayde said the amount is "just looking for some kind of minimum amount that was meaningful, to get things started." He pointed to other states that have purchased precious metals and to private vaults available in the region.
Several senators pressed practical questions about storage, insurance and whether the treasurer already has legal authority to hold gold. Senator Cold asked, "What's gonna cost to store this said gold?" Ayde responded that regional vault operators quoted storage and full insurance costs at roughly 25 basis points annually. "25 basis points is what the storage cost looks like," Ayde said, adding that vaults are armed and insured.
Other speakers framed the purchase as either an insurance policy against monetary debasement or a misdirected use of public funds. Senator Pappas said he voted no in committee and argued that "the state should not be holding something it's not gonna make money on," noting that gold does not generate yield the way equities and bonds can. Senator Anderson said the state's investment program is already returning significant revenue and cautioned that divesting even modest amounts from that program would reduce investment returns for the state.
Supporters said the purchase is a low‑cost hedge. Ayde and others noted Utah's recent purchases and argued a small allocation could diversify risk. Senator Eyde described gold as "more of an insurance policy" and said other governments hold gold for that reason.
Questions on implementation included who would store and audit the metal, how the treasurer would acquire it, whether outside contracts would be required, and whether the state would ever sell the metals. Ayde said the treasurer could use existing contract services and storage vaults or custody within the state, and that the initial purchase could be modest and scaled up later.
Committee of the Whole adopted the standing committee amendment on changes suggested by the treasurer's office, including specifying the Permanent Mineral Trust Fund as the account and adding capital financing language. The bill passed out of Committee of the Whole with a favorable recommendation.
Ending: The bill requires rulemaking by the treasurer and a study to be submitted to the Joint Revenue Committee; lawmakers debating the measure said it was a trial step that could be reviewed if the treasurer reports unanticipated costs or administrative burdens.
