Texas Has a Gold Depository
Texas will become the first state in the nation with its own bullion depository after an intensive two-year process of planning and development. First proposed by Rep. Giovanni Capriglione back in 2013, it finally passed with ease during the 84th Legislature after Rep. Capriglione revised the bill to make it cost neutral.
The Texas Bullion Depository is a state-owned facility
The Texas Bullion Depository allows people from across the nation to store gold, silver, platinum and rhodium in a secure vault located approximately 30 miles northwest of Austin. Customers can deposit metals online or send them through common carrier or armored truck; once stored they can access their assets either directly at point-of-sale or with a bullion-funded debit card that converts their bullion into fiat currency upon checkout.
Rep. Giovanni Capriglione first proposed the idea for a state-owned depository in 2013 after being inspired by author James Rickards to propose one as part of his plan for a precious metals transaction system backed by state. Unfortunately, this bill never gained momentum due to estimates suggesting its implementation could cost $14 million per year in its initial two years of implementation.
Gov. Greg Abbott signed into law in 2015 an initiative creating the state-owned facility, which opened for business in 2018. University of Texas Investment Management Company Chief Investment Officer Christopher Hegar said this facility will enable it to “repatriate” $1 billion of gold bullion held at HSBC bank in New York City and repatriate it back into Texas.
It is a safe place to store your gold
Investing in precious metals is a popular strategy to protect wealth against political or economic uncertainty, but you’ll need a secure location to store it – this new Texas depository provides that service.
Hegar announced his office had selected Austin-based Lone Star Tangible Assets to run the depository under Comptroller oversight.
Hegar acknowledges the desire of Texas residents to keep their gold close by citing how the University of Texas Management Company owns $660 million worth of bullion stored at HSBC Bank in New York for an annual fee.
Hegar’s bill would allow UTIMCO to relocate its holdings back to Texas as long as any new depository doesn’t exceed the costs associated with their current facility in New York; further, such a depository must be within 150 miles of COMEX trading markets.
It is a convenient way to access your gold
Are you searching for a safe and efficient way to store precious metals? Look no further than the Texas Bullion Depository in Leander; this new state-owned facility provides various storage solutions tailored to individual and business customers alike and increases oversight on your assets, offering peace of mind.
Legislation authorizing the depository expressly states that no “governmental or quasi-governmental authority” can confiscate or freeze gold stored there – sending out an alarm bell for any government that attempts to seize investors’ gold stored with them.
The Texas Bullion Depository will charge customers less than one half of one percent, or approximately $500 annually, for storage and insurance at its temporary facility near Austin, with plans underway to build a permanent site that meets state security regulations. LSTA hopes to find permanent homes for this facility within LSTA soon.
It is a secure place to store your gold
TxBD was established by the 84th Texas Legislature as an alternative to depositories located mainly around New York City for precious metal storage, offering Texasans more secure options and meeting higher standards than private depositories do. As a state agency, it must adhere to more stringent standards than private deposits do.
The Texas Bullion Depository is now accepting deposits from financial institutions, cities, school districts, businesses and individuals alike. Additionally, it offers various secure storage solutions, with its temporary home – a vault at Lone Star Tangible Assets facility in Austin being monitored 24/7 via multiple cameras and alarms.
Giovanni Capriglione proposed this legislation in 2013, noting that a state bullion depository could help UTIMCO, an investment company which manages both University of Texas and Texas A&M systems, to repatriate $1 billion worth of gold that had been held at HSBC New York at an annual storage fee of $606,000 per year. UTIMCO stipulates two conditions before moving its holdings: it cannot cost more to store it there than in New York and must become part of COMEX (an exchange that regulates quality metal trading platforms) which regulates quality issues when trading happens on its platform.
Categorised in: Blog