While some US states and cities are on the verge of bankruptcy, others are wallowing in money and regularly finding themselves with a budget surplus. Of course, they can keep this excess money in a bank account, but the growing risks of inflation are pushing them to look for more attractive alternatives.
For instance, the mayor of Miami is considering buying Bitcoin with some of the city's reserves. Others have a more conservative approach. For instance, a member of the Idaho Legislature has suggested that the director of the state Department of Finance should have the right to invest budget money into gold and silver to protect the state budget from depreciation.
Some analysts say that this decision could have far-reaching consequences, since other states could join the initiative. As the political situation in the country remains tense, each state is trying to solve its economic problems on its own. Considering how fast the Federal Reserve is printing new money, it is only a matter of time until the price of gold and silver reaches new all-time highs.
The nature of the gold in question is crucial: Idaho and other states will probably want to own physical gold stored in vaults, rather than paper derivatives that act as simple IOUs but do not confer real physical ownership.
Website : https://gold.storage/
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