United States Senators Jim Risch, a Republican of Idaho, and Catherine Cortez Masto, a Democrat from Nevada, just introduced the System Integrity through Licensed Vault Expansion and Resilience (SILVER) Act.
Announced on May 21, this bipartisan bill seeks to expand the geographic diversity of approved precious metals depositories across the U.S. It addresses the current concentration of most storage facilities in the New York City region by requiring the selection of two depositories for approval in each of the Mountain, Pacific, Eastern and Central time zones.
Lawmakers introduced the measure to reduce costs for miners and market participants while lowering risks tied to geographic concentration. It also intends to enhance national security while supporting domestic mining industries in the West.
Even with support from both parties, experts expect the SILVER Act could take 12 to 24 months to move through committee reviews, votes in Congress and final approval before reaching the president’s desk. Potentially even longer.
Read more: NevGold launches 20,000-metre drill campaign at Nevada antimony-gold project
Miners in states like Idaho and Nevada could benefit significantly
This legislation promises to ease logistical burdens for mining operators that produce precious metals in the western U.S.
Companies currently ship metals long distances to New York-area vaults, which drives up transportation costs, insurance expenses and delivery times. New depositories in the Mountain and Pacific time zones would allow producers to store output closer to operations, cutting expenses and improving cash flow.
Major operators like Kinross Gold Corp (TSE: K) (NYSE: KGC) (FRA: KIN2) and Barrick Mining Corp (TSE: ABX) (NYSE: B) (ETR: ABR0) could realise immediate operational efficiencies. Kinross runs large open-pit mines such as Bald Mountain and Round Mountain in Nevada, while Barrick co-operates the massive Nevada Gold Mines joint venture with Newmont Corporation (TSE: NGT) (NYSE: NEM) (FRA: NMM). Reduced storage and transport costs would boost margins for these gold producers.
Junior explorers and developers, such as NevGold Corp (CVE: NAU) (OTCMKTS: NAUFF) (FRA: 5E50), could also stand to benefit as the ecosystem matures. NevGold holds the Limousine Butte gold-antimony project in Nevada and Nutmeg Mountain in Idaho.
New York stores staggering amount of gold
The state continues to serve as the dominant hub for precious metals storage, underscoring the importance of diversification.
The Federal Reserve Bank of New York’s gold vault, located 80 feet below street level in Manhattan on bedrock, holds approximately 6,331 metric tons of gold (about 507,000 bars), according to the most recent data. The vault’s massive 90-ton rotating steel cylinder door and multi-layered security make it one of the most fortified facilities in the world.
Commercial options also complement the Fed’s role. Stonex Group Inc‘s (NASDAQ: SNEX) (FRA: I4F) New York vault recently gained CME-registered depository status for gold, silver, platinum and palladium, becoming one of only about 11 approved U.S. facilities for COMEX and NYMEX deliveries.
Read more: NevGold pushes toward potential 2027 antimony production at Limousine Butte
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