National Defense-Related Silver Needs Should Be Reevaluated and Alternative Disposal Methods Explored
EMD-82-24
Published: Jan 11, 1982. Publicly Released: Jan 11, 1982.
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Highlights
GAO was requested to evaluate the consequences of a sale of silver from the National Defense Stockpile, a supply of materials retained to prevent costly dependence upon foreign supply sources during national emergencies. Specifically, GAO was asked to address all aspects of the sale, including changes which have occurred since the sale was last justified and alternatives to disposing of any excess silver.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Federal Emergency Management Agency | The Director, FEMA, in evaluating various factors and information, should specifically consider: (1) the most recent war scenario hypothesized in terms of participants, war fronts, type of military action, and warning time; (2) defense-related uses of silver during past national emergencies; (3) reduced expansion from existing mines during wartime; (4) decreasing domestic smelting capacity; (5) the cost of silver from recycling, domestic stocks, and foreign suppliers; (6) the impact that selling the silver at auction may have on relations between the United States and its major foreign suppliers; and (7) long-term uncertainties relating to projected increased U.S. dependency on foreign silver sources and the possibility that a silver stockpile goal could be reestablished at some future date. |
Closed – Implemented
Interior has never released the study on the need for stockpile silver. It now appears that the report has been permanently shelved. As of October 1985, there were no proposals for a massive disposal of stockpile silver. If such a proposal should resurface, GAO may wish to challenge it.
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