Texas Has a Gold Depository
Texas investors are turning to precious metals such as gold and silver for investment purposes, yet often need to pay to store these assets elsewhere.
State lawmakers changed all that when, in 2015, they passed a bill creating the Texas Bullion Depository – officially opening in Austin this week.
What is the Texas Bullion Depository?
Due to current political and economic volatility both here and internationally, individuals still invest in gold bars and precious metals in hopes that they will maintain their value during uncertain times. Now they can deposit them at a state-run facility operated by private contractors under supervision by the Texas Comptroller of Public Accounts.
Rep. Giovanni Capriglione first floated the idea for a depository back in 2013, when he introduced legislation to establish one in New Jersey. That proposal ultimately languished in the Legislature because its first two year costs would total more than $14 million.
Glenn Hegar reworked legislation in 2015 to establish the Texas Bullion Depository, a 23,000-square-foot vault located in Austin and managed by Lone Star Tangible Assets, eventually expanding to double-sized facility in Leander; all deposits are fully covered by Lloyd’s of London insurance policies.
Why Should I Store My Gold at the Texas Bullion Depository?
State-administered depository fees are lower than private depositories and provide greater levels of security than their privately managed counterparts, with its team coming directly from the precious metals industry providing it with additional expertise for operations.
When the 84th Legislature created the Texas Bullion Depository, lawmakers made clear they wanted to offer Texas residents an alternative to New York-area depository facilities. State Rep. Giovanni Capriglione spearheaded this idea.
LSTA’s Austin facility offers depositors the opportunity to store gold, silver and platinum bullion they own themselves or buy directly from dealers for storage. Depositors may either ship existing bullion directly into the depository, or buy from dealers and deposit it themselves.
Gold, silver and most platinum bullion purchases made in Texas are exempt from sales tax collection by bullion dealers, providing substantial savings for residents living in states which require bullion dealers to collect sales tax from buyers of Precious Metals.
How Does the Texas Bullion Depository Work?
Lone Star Tangible Assets operates the Texas Bullion Depository under state oversight. His office chose Lone Star’s services for moving and storing precious metals. Wednesday saw Hegar make her deposit, with more people expected to utilize this facility going forward.
Hegar’s office announced earlier this year that the first state-administered bullion depository had opened at LSTA’s Austin facility and that Hegar was its inaugural customer, shipping precious metals for segregated and fully insured storage.
Hegar hopes the Texas Bullion Depository will set an example for other states, creating an alternative system of money that challenges federal control of money. He envisions it also serving as an aid towards financial independence by encouraging citizens to use physical precious metals in daily transactions and potentially replace the Federal Reserve entirely. Those interested in depositing gold with Texas Bullion Depository can do so using various methods.
How Much Will It Cost to Store My Gold at the Texas Bullion Depository?
The Texas Bullion Depository welcomes anyone from anywhere around the world who pays a fee to store precious metals at its facility in Texas. People can buy bullion from dealers and have it directly delivered, or send in precious metals they already own to be stored there. By paying this fee to store gold, silver, or platinum at its facility it helps cover operational costs while creating revenue for Texas.
On Wednesday, three years after legislators authorized its establishment, the first state-administered precious metals depository was officially opened for business by Lone Star Tangible Assets of Texas – this temporary facility will eventually relocate permanently in Leander in 2019.
Financial institutions, cities, school districts, businesses and individuals can store precious metals at the depository. LSTA will also offer storage accounts to institutions, government agencies and COMEX clients; additionally, most precious metals bought in Texas are exempt from sales tax, making this an economical solution for investors.
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