
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 31USC5116]

 
                       TITLE 31--MONEY AND FINANCE
 
                           SUBTITLE IV--MONEY
 
                     CHAPTER 51--COINS AND CURRENCY
 
                    SUBCHAPTER II--GENERAL AUTHORITY
 
Sec. 5116. Buying and selling gold and silver

    (a)(1) With the approval of the President, the Secretary of the 
Treasury may--
        (A) buy and sell gold in the way, in amounts, at rates, and on 
    conditions the Secretary considers most advantageous to the public 
    interest; and
        (B) buy the gold with any direct obligations of the United 
    States Government or United States coins and currency authorized by 
    law, or with amounts in the Treasury not otherwise appropriated.

    (2) Amounts received from the purchase of gold are an asset of the 
general fund of the Treasury. Amounts received from the sale of gold 
shall be deposited by the Secretary in the general fund of the Treasury 
and shall be used for the sole purpose of reducing the national debt.
    (3) The Secretary shall acquire gold for the coins issued under 
section 5112(i) of this title by purchase of gold mined from natural 
deposits in the United States, or in a territory or possession of the 
United States, within one year after the month in which the ore from 
which it is derived was mined. The Secretary shall pay not more than the 
average world price for the gold. In the absence of available supplies 
of such gold at the average world price, the Secretary may use gold from 
reserves held by the United States to mint the coins issued under 
section 5112(i) of this title. The Secretary shall issue such 
regulations as may be necessary to carry out this paragraph.
    (b)(1) The Secretary may buy silver mined from natural deposits in 
the United States, or in a territory or possession of the United States, 
that is brought to a United States mint or assay office within one year 
after the month in which the ore from which it is derived was mined. The 
Secretary may use the coinage metal fund under section 5111(b) of this 
title to buy silver under this subsection.
    (2) The Secretary may sell or use Government silver to mint coins, 
except silver transferred to stockpiles established under the Strategic 
and Critical Materials Stock Piling Act (50 U.S.C. 98 et seq.). The 
Secretary shall obtain the silver for the coins authorized under section 
5112(e) of this title by purchase from stockpiles established under the 
Strategic and Critical Materials Stock Piling Act (50 U.S.C. 98 et 
seq.). The Secretary shall sell silver under conditions the Secretary 
considers appropriate for at least $1.292929292 a fine troy ounce.

(Pub. L. 97-258, Sept. 13, 1982, 96 Stat. 984; Pub. L. 99-61, title II, 
Sec. 203, July 9, 1985, 99 Stat. 116; Pub. L. 99-185, Sec. 2(c), Dec. 
17, 1985, 99 Stat. 1178; Pub. L. 100-274, Sec. 5, Mar. 31, 1988, 102 
Stat. 50.)

                                          Historical and Revision Notes
-------------------------------------------------------------------------------
---------------------------------
           Revised Section                   Source (U.S. Code)                
Source (Statutes at Large)
-------------------------------------------------------------------------------
---------------------------------
5116(a)..............................  31:733(words after semicolon).  R.S. Sec
.  3699(words after semicolon);
                                                                        restate
d Jan. 30, 1934, ch. 6, Sec.  9,
                                                                        48 Stat
. 341.
                                       31:734.                         R.S. Sec
.  3700; restated Jan. 30, 1934,
                                                                        ch. 6, 
Sec.  8, 48 Stat. 341.
5116(b)(1)...........................  31:335.                         R.S. Sec
.  3526; restated May 10, 1950,
                                                                        ch. 173
, 64 Stat. 157; July 9, 1956, ch.
                                                                        535, Se
c.  2, 70 Stat. 518; July 23,
                                                                        1965, P
ub. L. 89-81, Sec.  205, 79 Stat.
                                                                        256.
                                       31:394.                         July 23,
 1965, Pub. L. 89-81, Sec.  104,
                                                                        79 Stat
. 255.
5116(b)(2)...........................  31:405a-1.                      June 4, 
1963, Pub. L. 88-36, Sec.  2, 77
                                                                        Stat. 5
4; July 23, 1965, Pub. L. 89-81,
                                                                        Sec.  2
09, 79 Stat. 257; restated June
                                                                        24, 196
7, Pub. L. 90-29, Sec.  3, 81
                                                                        Stat. 7
7.
-------------------------------------------------------------------------------
---------------------------------

    In subsection (a)(1), the words ``With the approval of the 
President'' are applied to 31:733(words after semicolon) because of 
31:822b. The words ``at home or abroad'' in 31:733(words after 
semicolon) and 734 are omitted as surplus. The words ``terms and'' are 
omitted as included in ``conditions''. The text of 31:733(proviso) is 
omitted as superseded by the Bretton Woods Agreement Act (22 U.S.C. 286 
et seq.) and sections 6 and 9 of the Act of October 19, 1976 (Pub. L. 
94-564, 90 Stat. 2661), repealing 31:449 that provided for parity of the 
dollar on terms of gold and special drawing rights. The text of 
31:734(1st sentence words after semicolon) is omitted as surplus.
    In subsection (b)(1), the words ``coinage metal fund'' are 
substituted for ``bullion fund'' in 31:335 as being more precise and 
because of section 5111 of the revised title. The words ``after July 23, 
1965'' in 31:394 are omitted as executed. The words ``to procure bullion 
for coinage'' and 31:335(2d-last sentences) are omitted as obsolete 
because the Secretary of the Treasury has authority to mint coins 
containing silver only under section 5112(e) of the revised title and 
the Secretary holds sufficient silver to mint those coins. See Sen. 
Rept. No. 91-1084 (1970).
    In subsection (b)(2), the word ``terms'' is omitted as being 
included in ``conditions''. The words ``for at least'' are substituted 
for ``at a price not less than the monetary value of'' to eliminate 
unnecessary words.

                       References in Text

    The Strategic and Critical Materials Stock Piling Act, referred to 
in subsec. (b)(2), is act June 7, 1939, ch. 190, as revised generally by 
Pub. L. 96-41, Sec. 2, July 30, 1979, 93 Stat. 319, which is classified 
generally to subchapter III (Sec. 98 et seq.) of chapter 5 of Title 50, 
War and National Defense. For complete classification of this Act to the 
Code, see section 98 of Title 50 and Tables.


                               Amendments

    1988--Subsec. (a)(2). Pub. L. 100-274 amended last sentence 
generally, substituting ``shall be deposited by the Secretary in the 
general fund of the Treasury and shall be used for the sole purpose of 
reducing the national debt'' for ``shall be deposited in the general 
fund of the Treasury''.
    1985--Subsec. (a)(3). Pub. L. 99-185 added par. (3).
    Subsec. (b)(1). Pub. L. 99-61, Sec. 203(1), (2), substituted ``The 
Secretary may buy silver'' for ``The Secretary shall buy silver'', and 
struck out provision directing that the Secretary pay $1.25 a fine troy 
ounce for silver.
    Subsec. (b)(2). Pub. L. 99-61, Sec. 203(3), inserted provision 
directing that the Secretary obtain the silver for the coins authorized 
under section 5112(e) of this title by purchase from stockpiles 
established under the Strategic and Critical Materials Stock Piling Act.


                    Effective Date of 1985 Amendments

    Amendment by Pub. L. 99-185 effective Oct. 1, 1985, except that no 
coins may be issued or sold under section 5112(i) of this title before 
Oct. 1, 1986, see section 3 of Pub. L. 99-185, set out as a note under 
section 5112 of this title.
    Amendment by Pub. L. 99-61 effective Oct. 1, 1985, with exception as 
to issuance or sale of coins under section 5112(e) of this title, see 
section 205 of Pub. L. 99-61, set out as a note under section 5112 of 
this title.


                    Termination of Coinage Metal Fund

    All assets and liabilities of Coinage Metal Fund transferred to 
United States Mint Public Enterprise Fund and such coinage fund to cease 
to exist as separate fund as its activities and functions are subsumed 
under and subject to United States Mint Public Enterprise Fund, see 
section 5136 of this title.
