The United States introduced the SILVER Act to diversify precious metal storage and reduce systemic risk.
2026-03-23 12:00:55
The ongoing turmoil in the Middle East is severely disrupting global supply chains. Although the war in Iran has not yet directly impacted the physical precious metals market, the dramatic fluctuations in global financial markets indicate that the precious metals sector is not entirely unaffected. Soaring oil prices and geopolitical uncertainties have indirectly amplified market risks.
To address potential supply chain disruptions, the U.S. Congress has introduced federal legislation aimed at expanding the National Precious Metals Storage Framework and mitigating systemic risks in financial markets. Last Thursday (March 19), Republican Representative Russ Fulcher of Idaho and Republican Representative Mark Harris of North Carolina formally introduced the System Integrity through Licensed Vault Expansion and Resilience Act (SILVER Act).
The bill aims to adjust and relax geographical restrictions on approved storage facilities for precious metals linked to regulated futures markets.
Under current law, exchange-approved precious metals storage facilities must be located within approximately 150 miles of New York City. This highly centralized location is considered a significant risk by legislators and industry professionals, potentially impacting market stability, national security, liquidity, and investor access.
In a statement, Fulcher said that establishing approved repositories in different parts of the United States will significantly strengthen the resilience of the precious metals market's supply chain.
He added, “Establishing metal storage facilities in multiple locations across the United States will provide the nation with more affordable access to metals and better protect assets during national emergencies or extreme weather events. I am honored to introduce the SILVER Act, which requires the approval of at least two storage facilities in each of the four time zones: Eastern, Central, Mountain, and Pacific, thereby enhancing system integrity and resilience.”
Supporters of the bill argue that building a diversified storage network has significant strategic value as gold and silver continue to be regarded as important monetary assets in global financial markets.
Some proponents, including the Sound Money Defense League, argue that establishing secure storage facilities in the western United States (where most of the country’s mining and refining activities take place) would further enhance market resilience and accessibility.
Industry stakeholders emphasize that expanding the approved repository network can significantly increase storage capacity, improve liquidity, and reduce transportation and storage costs for investors, producers, and institutions participating in the market.
Stefan Gleason, CEO of Money Metals Depository, one of North America’s largest commercial gold and silver storage providers, said, “Providing more qualified storage facilities across the country will improve overall efficiency and reduce barriers to market entry.” He added, “This is not only about reducing financial system risk in response to the monetary and strategic role of gold and silver, but also about better aligning market infrastructure with real-world supply chains.”
The proposal of the SILVER Act reflects the high importance that policymakers place on the resilience of critical asset infrastructure in the context of increasing geopolitical and supply chain pressures in the United States.
By diversifying the locations where precious metals are stored, the bill aims not only to mitigate concentration risks but also to provide investors with broader and safer avenues for participation.
If the bill is passed, it will mark a significant step toward a more resilient and nationwide infrastructure for the U.S. precious metals market, and this move could provide new assurance for market stability during a period of rising global uncertainty.
Introducing the SILVER Act
To address potential supply chain disruptions, the U.S. Congress has introduced federal legislation aimed at expanding the National Precious Metals Storage Framework and mitigating systemic risks in financial markets. Last Thursday (March 19), Republican Representative Russ Fulcher of Idaho and Republican Representative Mark Harris of North Carolina formally introduced the System Integrity through Licensed Vault Expansion and Resilience Act (SILVER Act).
The bill aims to adjust and relax geographical restrictions on approved storage facilities for precious metals linked to regulated futures markets.
Current regulations expose centralized risks: Repositories are overly reliant on the New York area.
Under current law, exchange-approved precious metals storage facilities must be located within approximately 150 miles of New York City. This highly centralized location is considered a significant risk by legislators and industry professionals, potentially impacting market stability, national security, liquidity, and investor access.
In a statement, Fulcher said that establishing approved repositories in different parts of the United States will significantly strengthen the resilience of the precious metals market's supply chain.
He added, “Establishing metal storage facilities in multiple locations across the United States will provide the nation with more affordable access to metals and better protect assets during national emergencies or extreme weather events. I am honored to introduce the SILVER Act, which requires the approval of at least two storage facilities in each of the four time zones: Eastern, Central, Mountain, and Pacific, thereby enhancing system integrity and resilience.”
Diversified storage networks: Enhancing market resilience and ease of access
Supporters of the bill argue that building a diversified storage network has significant strategic value as gold and silver continue to be regarded as important monetary assets in global financial markets.
Some proponents, including the Sound Money Defense League, argue that establishing secure storage facilities in the western United States (where most of the country’s mining and refining activities take place) would further enhance market resilience and accessibility.
Industry stakeholders emphasize that expanding the approved repository network can significantly increase storage capacity, improve liquidity, and reduce transportation and storage costs for investors, producers, and institutions participating in the market.
Stefan Gleason, CEO of Money Metals Depository, one of North America’s largest commercial gold and silver storage providers, said, “Providing more qualified storage facilities across the country will improve overall efficiency and reduce barriers to market entry.” He added, “This is not only about reducing financial system risk in response to the monetary and strategic role of gold and silver, but also about better aligning market infrastructure with real-world supply chains.”
The proposal of the SILVER Act reflects the high importance that policymakers place on the resilience of critical asset infrastructure in the context of increasing geopolitical and supply chain pressures in the United States.
By diversifying the locations where precious metals are stored, the bill aims not only to mitigate concentration risks but also to provide investors with broader and safer avenues for participation.
If the bill is passed, it will mark a significant step toward a more resilient and nationwide infrastructure for the U.S. precious metals market, and this move could provide new assurance for market stability during a period of rising global uncertainty.
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- The market involves risk, and trading may not be suitable for all investors. This article is for reference only and does not constitute personal investment advice, nor does it take into account certain users’ specific investment objectives, financial situation, or other needs. Any investment decisions made based on this information are at your own risk.
