CBS News
Hurricane Helene’s damage, related expenses in North Carolina shattering records, estimated at $53 billion
Raleigh, N.C. — The catastrophic flooding and destruction caused by Hurricane Helene in western North Carolina likely caused at least a record $53 billion in damages and recovery needs, Gov. Roy Cooper’s administration said Wednesday.
The state budget office generated the preliminary figure for direct or indirect damages and potential investments to prevent similar destruction in future storms.
Cooper told reporters the state’s previous record for storm damage was $17 billion from Hurricane Florence, which struck eastern North Carolina in 2018.
“It is no exaggeration to describe Helene as the deadliest and most damaging storm ever to hit North Carolina,” Cooper said while unveiling his request to the General Assembly for $3.9 billion to help pay for repairs and revitalization. He called it a “down payment on western North Carolina’s future.”
North Carolina state officials have reported 96 deaths from Helene, which brought historic levels of rain and flooding to the mountains in late September.
The storm and its aftermath caused 1,400 landslides and damaged over 160 water and sewer systems, at least 6,000 miles of roads, more than 1,000 bridges and culverts and an estimated 126,000 homes, the budget office said. Some 220,000 households are expected to apply for federal assistance.
“This jaw-dropping damage figure reminds us that we are very much on the front end of this recovery effort,” the Democratic governor said.
The report with Cooper’s spending request was released the day before the Republican-controlled legislature planned to meet for a one-day session to advance additional Helene recovery legislation.
Lawmakers unanimously approved two weeks ago a $273 million package that also included language to provide flexibility to state agencies, displaced residents and officials running elections in 25 western counties. Thirty-nine of the state’s 100 counties are within the federally declared disaster area.
State government coffers include several billon dollars that can be accessed for future recovery spending. Almost $4.5 billion is in the state’s savings reserve alone.
Legislative leaders hadn’t disclosed as of late Wednesday afternoon specifics about what they would attempt to pass Thursday. Lawmakers were still reviewing Cooper’s request that they received Tuesday, according to Lauren Horsch, a spokesperson for Senate leader Phil Berger. Any legislation is unlikely to be the full package presented by Cooper and State Budget Director Kristin Walker. After Thursday, legislators are expected to return to Raleigh on Nov. 19.
The damage report projects $48.8 billion in direct or indirect damages, along with $4.8 billion of anticipated mitigation expenses. The budget office estimates the federal government will cover $13.6 billion, with private and other sources covering $6.3 billion.
Most of the losses won’t ever be recovered, Walker said.
The private-source share of expenses likely will be relatively low because so few homeowners and farmers in the disaster areas had flood or crop insurance. Close to 93% of homes with flood damage verified by the Federal Emergency Management Agency lacked flood insurance, the report said.
Cooper’s request includes $475 million for a two-phase recovery program for businesses in the hardest-hit areas, with grants from $1,500 to $50,000 in the first phase and up to $75,000 in the second phase.
Other highlights include $289 million in matching funds to access federal money to repair utilities and debris removal; $225 million for grants to farmers for uninsured losses; and $100 million for public school and community college capital needs.
Cooper also wants $325 million to help homeowners and renters with rebuilding and minor repairs immediately while a larger program dependent on federal funds is implemented. It took nearly two years for Washington to send community development block grant funding for home repairs after Florence and Hurricane Matthew in 2016, the report said.
Wednesday’s request also seeks $175 million to cover remaining Matthew and Florence home repairs being made through the block grant program. Cooper’s administration attributes the shortfall to rising construction costs, labor shortages, the COVID-19 pandemic and a congressional appropriation that was roughly half of what the state requested.
The fiscal gap prompted Berger and another leading Senate Republican to put out a news release Wednesday criticizing the $175 million request and its timing, calling them yet another sign of poor management by the state Office of Recovery and Resiliency. The senators said an oversight committee would investigate the matter next month.
Getty Images
Consumers have been flocking to gold in recent years to seek a hedge against inflation and a way to safeguard their wealth in challenging economic times. The uptick in demand has sent gold prices soaring, with the average price per ounce hitting record highs several times this year.
Some forecasts expect gold prices to continue rising as we enter 2025, which could make now a smart time to add gold to your portfolio. But exactly how should you do that? Should you buy physical bars and coins from your local gold dealer? Or should you use one of the many digital gold investment strategies, like gold individual retirement accounts (IRAs), gold exchange-traded funds (ETFs) or gold stocks?
Compare your options and add gold to your portfolio today.
Physical gold vs. digital gold: What to know
Here’s how your physical gold and digital gold options compare.
Purchasing
With digital gold, you’ll typically need to open a brokerage account, which most companies allow you to do online. You can then purchase gold stocks or buy into gold ETFs or mutual funds through a digital dashboard.
Some companies also allow you to digitally purchase physical gold — fractional shares of gold bullion that are then stored off-site in a secure facility. With Argo, for instance, you can buy and sell gold around the clock using the company’s digital platform. Your gold is then stored at the Royal Canadian Mint in Ottawa.
“The biggest differences would be that digital gold companies enable customers to purchase gold through a technology forward interface like a mobile app or online client portal,” says Ben Nadelstein, head of content at precious metals marketplace Monetary Metals. “These digital gold products often come with additional services such as storage, insurance, and constant tracking of the value of your metal holdings.”
Start investing in the right gold assets now.
Sizes and weights
When you buy physical gold, you’ll need to commit to buying a specific coin or bar size (or piece of jewelry, in some cases). Digital gold often comes with more options when it comes to the size of your investment.
“Companies that have these types of digital interfaces are often able to offer gold purchases in smaller denominations than conventional physical gold bullion dealers or coin shops,” Nadelstein says.
Argo, mentioned above, is a good example. With that digital platform, you can buy as little as $5 in gold.
Taxes
Physical gold investments — including digital fractions of them — typically come with tax liabilities. There are capital gains taxes (at a higher “collectible” tax rate) to consider, which can increase your tax bracket, resulting in higher taxes all around.
If you choose a digital option that does not hold physical gold — like a gold ETF or mutual fund, for instance — you can avoid some of these taxes. A gold futures account can also be a smart way to increase your exposure to the precious metal, says James Cordier, CEO and head trader at Alternative Options.
If you opt for a future account, you’ll need a series three broker to help, but the process is “very easy,” Cordier says. “You won’t have the shiny coins to hold in your hand, but it delivers more gold bang for your buck.”
Liquidity
Gold offers high liquidity overall, but physical gold isn’t as liquid as digital gold. You’ll need to find a buyer if you want to cash in on your investments or head up to your local pawn shop to get some money for it, and that may not be a quick or easy task. You could also lose money in the process.
“What someone will sell gold to you for is not the price they will buy it back from you,” says Matthew Chancey, a certified financial planner and founder of Tax Alpha Companies. “Think of it as selling your gold at wholesale prices and buying your gold at retail prices.”
While there’s still the chance of financial loss with digital gold investing options, you’re typically able to cash in on your investments much faster. If you find yourself in a financial pinch, for example, you can sell your gold stocks or ETF shares online, getting the funds you need very quickly.
Research
If you invest in physical gold, you get the satisfaction of holding your investments in your hand. You can store them safely at home or in a secure deposit box, and you know where it is at all times.
If you’re going to go the digital route, this level of control isn’t there, so you’ll need to do your research to ensure you’re working with the right companies. Research the mutual funds and companies you’re considering buying stock in, and do your due diligence on any gold IRA or digital gold companies you’re thinking about using.
“When investing with digital gold companies there is an additional level of trust required, because those companies are often acting as custodians of your gold, too,” Nadelstein says.
The bottom line
There are many ways to invest in gold. If you’re not sure which type of gold investments are best for your portfolio, consult a financial advisor or investment professional. They can offer personalized guidance for your specific situation.
Watch CBS News
Be the first to know
Get browser notifications for breaking news, live events, and exclusive reporting.
Watch CBS News
Be the first to know
Get browser notifications for breaking news, live events, and exclusive reporting.