North Dakota House advances bill to invest state funds in gold, silver – InForum

BISMARCK — An effort to invest $40 million of North Dakota’s assets in gold and silver advanced in the state Legislature Monday, Feb. 17, after initially failing by one vote.

House Bill 1183 would direct the state treasurer to invest 1% of all funds deposited into the general fund in gold and silver during the 2027-2029 biennium.

The legislation asks the treasurer’s office, in the meantime, to study how to invest those state funds in gold and silver with respect to inflation and North Dakota’s general economic stability.

Bill sponsor Rep. Daniel Johnston, R-Kathryn, said if North Dakota would have had invested the same amount of money in gold one year ago, the value would have since increased by $18 million.

Tom Stromme / The Bismarck Tribune

“In the stock market, you could lose everything,” said Rep. Jeff Hoverson, R-Minot, before voting in favor of the bill. “If you have physical gold, even if it doesn’t have the same rate of return for a stretch in time, you can’t lose it.”

Opponents questioned which entities in the state have the capacity to store gold and silver, whether it be in bars or coins.

There are “dozens” of options for storing, guarding and insuring such assets, proponents said — such as the Bank of North Dakota or contracted private depositories.

Before voting against the bill, Rep. Mitch Ostlie, R-Jamestown, emphasized that the State Investment Board already has the authority to invest state money in assets like gold and silver.

Other opposing lawmakers listed safety of those guarding the gold and silver, as well as auditing, as other issues with passing the legislation.

The chamber initially struck down the bill on Friday, Feb. 14, when a handful of members were absent, by a 47-33 vote. The bill needed 48 votes to pass the House.

Over the weekend, the bill gained eight votes for a final tally of 54-35. It will be voted on in the Senate next.