REVISED
STATEMENT OF PURPOSE
RS31163 / S1314
Since the year 2000, the M2 money supply has grown by 350 percent. In other words, it has more than
quadrupled. A quadrupling of the money supply will eventually accelerate the rate of inflation.
By adding physical gold and silver to Idaho Code § 67-1210, the State Treasurer will be permitted to hold some
portion of state funds in physical gold and silver to help secure state assets against the risk of inflation and
financial turmoil and/or to achieve capital gains as measured in Federal Reserve Notes.
The new authority will be confined to holding gold and silver directly and in a manner that does not assume the
counter party risks involved with other current state holdings, such as corporate bonds, treasury bills, and other
debt instruments. This measure does not empower the State Treasurer to invest in paper forms of the metal
like futures contracts, or other gold and silver derivatives. The authority is confined to physical gold and silver,
directly owned by the state and stored in a secure depository or any bank or credit union with a class 1 vault
and licensed by the Department of Finance.
FISCAL NOTE
This will have no direct impact on the General Fund as it grants a permission for the Treasurer to invest state
idle moneys in precious metals. There may be some increase to the General Fund as investments may lead to
larger returns and serve as a stronger hedge against inflation. There will be no fiscal impact on local entities
because this is strictly limited to the only state Treasurer.
Contact:
Senator Phil Hart
(208) 332-1000
Representative Barbara Ehardt
(208) 332-1189
DISCLAIMER: This statement of purpose and fiscal note are a mere attachment to this bill and prepared by a proponent
of the bill. It is neither intended as an expression of legislative intent nor intended for any use outside of the legislative
process, including judicial review (Joint Rule 18).
Statement of Purpose / Fiscal Note Bill SOP/FN REVISED: 03/19/2024, 3:32 PM


Statutes affected:
Bill Text: 67-1210
Engrossment 1: 67-1210