WYOMING'S GOLD STASH

There's treasure inside a low-slung building on the outskirts of Casper, Wyo.—roughly $11.6 million in state-owned gold bars.

Wyoming bought the gold in December after passing a law requiring the state's investment portfolio to add precious metals as a hedge against economic turmoil. Among the worries are rising federal debt, inflation and a weak U.S. dollar—but also more extreme calamities, according to Bob Ide, a Republican state senator and lead sponsor of the "Wyoming Gold Act." The state legislature passed the bill last year with widespread support.

"I can't put a timeline on it, but there's gonna be a sovereign-debt crisis," Ide said. "There's no will to rein in spending."

A sovereign-debt crisis would mean the U.S. can't pay its debts, or there is such widespread fear of default that interest rates soar and the economy nosedives.

The state spent about $10 million as required by law to buy 2,312 troy ounces of gold, which equals about 72 roughly smartphone-sized bars. The stockpile, which has since risen in value, adds Wyoming to a growing cohort of states, including some with mining heritages, looking to add precious metal to their investment portfolios.

The gold is stored in a vault run by the private company Wyoming Reserve inside a beige, single-story building that used to be the Casper Star-Tribune's home. The vault is structured like "an onion layer," moored to bedrock and closely guarded, according to company Chief Executive Josh Phair. He testified in support of the gold-buying bill, which he said would help the state become a precious-metals hub for the country.

While state lawmakers mused about the logistics of transporting precious metals to Wyoming via aircraft and armored vehicle, the state ultimately bought gold from a bank that already had a stockpile in the Reserve, according to Phair. The storage fees there began at $7,021 a year when the state purchased the gold, but the cost fluctuates daily depending on the gold's value, according to the state treasurer's office

The concept has drawn some criticism, including from Gov. Mark Gordon, a Republican who let the bill become law without his signature while calling it a threat to Wyoming's financial security. Among Gordon's concerns were gold's volatility as an investment asset and the legislature's intrusion into managing the state's portfolio.

To read the complete article (subscription required), see:
Inside an Old Newspaper Building, Wyoming Is Stashing 2,312 Ounces of Gold (https://www.wsj.com/finance/commodities-futures/inside-an-old-newspaper-building-wyoming-is-stashing-2-312-ounces-of-gold-67c68ea8?st=FbtqC6)

See also:
https://www.thewyomingreserve.com/

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