Texas Gold Depository

As economic and political uncertainty increases, some individuals are turning to precious metal investments as an avenue of diversification. Investors wishing to store these precious investments need a secure location.

Hegar has chosen Lone Star Tangible Assets, a firm specializing in moving and storing precious metals, to establish and operate the depository with state oversight and charge fees from customers using it.


When offering to store your gold, a company must follow stringent security measures such as closed-circuit cameras, fire control systems, disaster recovery protocols and insurance coverage.

State officials in Texas are looking for businesses interested in running the Texas Bullion Depository with similar standards in mind. Furthermore, officials need a firm grasp on how an online service would accept, transfer and withdraw deposits of bullion deposits from an accepted facility.

The depository aims to help individuals and companies protect their assets against rapidly depreciating Federal Reserve notes, potentially helping avoid currency collapse and preserve independence from the Fed. According to observers, Texas can use it as part of its arsenal of strategies for becoming less dependent on national government; with Leander site expected to open soon as an initial step towards that goal; individuals, cities/counties/companies as well as governments can deposit precious metals for storage there.


Depository storage vaults are strictly segregated and individually sealed, monitored around-the-clock, and protected with all-risk insurance from Lloyd’s of London – one of the world’s premier insurers of specialized assets.

UT/Texas A&M Investment Management Company, the investment arm for both universities in Texas, currently stores its $1 billion gold bullion with HSBC Bank in New York City; however, their board wants it back home, and lawmakers are discussing ways in which this could happen.

One solution would be for the state to purchase and operate its own facility; however, this would cost taxpayers millions. To make the project more financially manageable, Rep. Giovanni Capriglione of Keller (R) suggested instead partnering with an outside vendor – such as Lone Star Tangible Assets for Austin location or possibly Leander as the provider – who can cover upfront costs as well as charge customers fees; Lone Star will run both locations.


The Texas Gold Depository was originally envisioned as a new home for millions of dollars worth of gold bullion owned by the University of Texas Investment Management Company, which oversees assets belonging to both Texas A&M University System and University of Texas systems. That organization currently stores their bullion at HSBC Bank in New York City with storage fees being charged accordingly.

Gov. Abbott promised when signing the state-run depository legislation that his administration would “repatriate” UTIMCO’s gold bullion to Texas; however, UTIMCO officials have announced no immediate plans to transport their gold back.

State and private entities tapped by Texas to operate its gold depository will split revenue generated from fees associated with storage fees for precious metals. Lone Star Tangible Assets chairman Mark Taylor expressed hopes that storage fees remain affordable to both residents and businesses of Texas, and hopes the depository can become part of Chicago Exchange to quickly buy or sell metal on demand.


Individuals, businesses and institutional investors alike have several methods available to them for holding physical precious metals. Investors may purchase precious metals through dealers, bullion exchanges or online resources; Texas residents who own precious metals can even avoid sales tax on their purchases by purchasing and storing their metals in states that don’t collect taxes on precious metals purchases.

Comptroller Hegar’s inaugural depository initiative will accept precious metals from across the country and has already garnered interest from several companies, including armored car giant Brink’s.

Matt Ferris, chairman of Texas’s private company chosen to operate its depository, stated his firm will only offer vault storage services if it joins COMEX and increases liquidity in its storage accounts. Hegar’s office is currently reviewing responses, and anticipates issuing formal solicitations bids shortly; any revenue generated will be split among state officials and private contractors, but much will go back into operating the depository, according to Smelker.

Raymond Banks Administrator
Raymond Banks is a published author in the commodity world. He has written extensively about gold and silver investments, and his work has been featured in some of the most respected financial journals in the industry. Raymond\\\'s expertise in the commodities market is highly sought-after, and he regularly delivers presentations on behalf of various investment firms. He is also a regular guest on financial news programmes, where he offers his expert insights into the latest commodity trends.

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