Sitting quietly in a vault on Salt Lake City’s west side is a growing pile of gold owned by the State of Utah, now worth over $60 million. It’s not just a political headline; it’s a real-world example of how long-term investment in hard assets like gold can pay off.
Last year, Rep. Ken Ivory sponsored legislation that allows Utah to allocate up to 10% of its $1.4 billion rainy day fund into gold. Since then, State Treasurer Marlo Oaks has steadily built a reserve that’s already returned millions in value as gold prices have climbed. And the state isn’t done yet—there’s authorization to buy up to $90 million more.
Texas was the first U.S. state to make major headlines by creating its gold depository in 2015. The Texas Bullion Depository allows for the storage of state-owned and private gold, including a movement to repatriate gold from federal holdings.
Why gold? Because it holds value, especially in times of economic instability. It’s highly liquid, easy to store, and has proven to be a reliable store of wealth over centuries.
What Gold Has Done in 30 Years
Let’s put this in perspective.
In 1994, gold was trading at around $380 per ounce. Fast forward to March 2024, and that same ounce trades for over $2,200. That’s a growth of nearly 480% over 30 years.
Imagine applying that kind of long-term growth to a personal or retirement portfolio, without the noise of stock market volatility or currency devaluation.
Why Utah Is Betting on Gold
Treasurer Oaks explains the logic: “It’s a relatively small component, but it’s a way to diversify. Rainy day funds are meant for the long term—until you suddenly need them. And gold is both durable and liquid.”
In fact, during economic downturns—when states often dip into rainy day reserves—gold tends to rise, offering both a hedge and an asset that retains its value when others don’t.
And now Utah is considering going even further.
New legislation—HB306, awaiting the governor’s signature—would make Utah the first state in the U.S. to allow vendors with state contracts to be paid in gold. It’s an ambitious move that could place Utah at the forefront of financial innovation, especially as the nature of money evolves.
“This merely allows vendors to choose gold or silver if they wish,” said Ivory. “For the state, it’s just another kind of account.”
Could Your Future Be Gold-Backed?
As trust in traditional fiat currencies fluctuates and concerns about inflation and central bank policies persist, Utah’s approach presents a fascinating model. One that not only protects value, but enables it to grow over time.
And Utah isn’t alone. Investors across the globe are once again turning to gold, not as a relic, but as a foundation for resilient portfolios. The state’s actions are a reminder that long-term wealth building isn’t about trends—it’s about time, trust, and smart allocation.
Investor Takeaway
If a state government is willing to park tens of millions in gold for the long haul, there’s a lesson here for individual investors: leave room for long-term growth. Portfolios that are left to grow over 20, 30, or even 40 years—especially when diversified into resilient assets like gold—can yield extraordinary results.
$380 to $2,200 over 30 years. That’s not just inflation protection. That’s a strategy.
