In a move reminiscent of San Francisco’s pioneering spirit during the Gold Rush era, the San Francisco Deputy Sheriffs’ Association (SFDSA) has diversified a portion of its financial reserves into gold and silver mining stocks and precious metals ETFs. This decision marks a forward-thinking step in safeguarding the financial health of our association amid rising global economic uncertainty.
Just as our members stand on the front lines to protect public safety, we are also taking proactive steps behind the scenes to protect the long-term interests of our organization and the members we serve. Investing in time-tested hard assets like gold and silver helps ensure that we’re not only prepared for the challenges of today — but positioned for the opportunities of tomorrow.
Gold and Silver: Real Assets for a Shifting World
Gold and silver have been valued for thousands of years — not just as currency, but as symbols of strength, stability, and wealth preservation. In an era of inflationary pressures, ballooning national debt, and increasing global financial volatility, these metals are once again in the spotlight — and for good reason.
Gold: The Ultimate Reserve Asset — Just Ask the Banks
Gold demand isn’t just coming from retail investors — it’s being driven by central banks worldwide. In 2022 and 2023, central banks purchased gold at the highest levels seen in over five decades, according to the World Gold Council. Nations like China, Russia, Turkey, and India have dramatically increased their gold reserves to reduce dependence on the U.S. dollar and to shield themselves from economic shocks.
Why are banks hoarding gold? Because it’s no one else’s liability. It carries no counterparty risk. It doesn’t rely on a corporation’s balance sheet or a government’s promise to pay. For banks managing national reserves, that kind of independence is priceless.
This surge in institutional demand has pushed global gold reserves to multi-decade highs — a clear sign that gold is not just a “safe haven” in theory, but a strategic asset being used by the world’s most powerful financial entities.
Silver: Soaring Demand, Shrinking Supply
While gold often steals the spotlight, silver is quietly becoming one of the most critical industrial metals of the 21st century.
- Solar panels use silver for its high electrical conductivity.
- Electric vehicles and hybrid cars require silver in their power systems.
- 5G infrastructure, semiconductors, and medical devices all rely heavily on silver components.
As countries push forward with clean energy transitions and green technologies, the demand for silver is skyrocketing — especially from sectors like solar, which alone accounts for nearly 15% of global silver usage.
But here’s the catch: silver supply is under pressure.
According to the Silver Institute, global silver demand reached a record high in 2023, while mine production struggled to keep pace. Several key factors contribute to this imbalance:
- Years of underinvestment in silver exploration
- Declining ore grades in major silver-producing countries
- Geopolitical disruptions in mining regions
- Growing competition for silver from technology manufacturers and energy producers
This has led to a structural supply deficit — where demand consistently outstrips supply. That dynamic doesn’t just raise prices; it creates long-term scarcity that could make silver one of the most valuable industrial and investment metals in the coming years.
Our Strategy: Prudent, Balanced, Strategic
SFDSA’s investment in precious metals focuses on:
- ETFs like SPDR Gold Shares (GLD) and iShares Silver Trust (SLV) for exposure to price movements and liquidity
- Select mining stocks and royalty companies with strong fundamentals, high-quality reserves, and low-cost production
- A balanced approach to reduce volatility while capturing long-term upside in the precious metals sector
This approach allows us to diversify our reserves, hedge against inflation, and capitalize on long-term trends that institutional investors and sovereign wealth funds are already betting on.
From Pickaxes to Portfolios: A Legacy of Gold
San Francisco was born from the Gold Rush. In 1849, thousands arrived with dreams of fortune, transforming a sleepy town into a booming city. Most didn’t strike it rich in the mines — but they built infrastructure, commerce, and opportunity that defined the future of California.
Now in 2025, we’re carrying that spirit forward — not with shovels, but with strategy.
Investing with Vision and Vigilance
At the SFDSA, we understand that security isn’t just about protecting the public — it’s about protecting the future. By diversifying our assets into gold and silver, we are thinking long-term, building resilience, and honoring the entrepreneurial roots of our city.
Just as the pioneers once came to San Francisco chasing gold, we’re ensuring that the legacy of bold action and smart investment lives on — this time, through informed financial stewardship.