SILVER Act

Key Points

• The SILVER Act would change how and where gold, silver, platinum, and palladium are stored for financial markets. Currently, most of these metals are kept in vaults near New York City. This bill requires exchanges to spread these storage spots across the country to prevent a single local disaster from hurting the whole market.
• Financial organizations that handle these metals would have to pick at least two storage vaults in every major U.S. time zone: Eastern, Central, Mountain, and Pacific. This ensures that the entire system does not rely on just one location, which helps keep the market stable and secure.
• By moving storage to more places, the bill aims to lower costs for investors and businesses. It encourages competition between different storage companies and makes it easier for people in different parts of the country to access the metals they trade.
• The bill also requires these organizations to be more open about how they choose their storage partners. They must use clear rules and allow new companies to apply to become official storage sites, as long as they meet high security and quality standards.

Impact Analysis

Govbase has not yet run an impact analysis on this legislation.