The state of Texas will be launching a gold depository to better monitor and safe-keep its own safe haven yellow metal. The Texas Bullion Depository will be made available to both state and other interested investors.
State Rep. Giovanni Capriglione, according to the Star-Telegram, said people not just from Texas but from around the world, “have this image of Texas as big and powerful.” He thinks this could have been a factor why his plan, House Bill 483, got the nods of both the House and the Senate. All that’s left for it to fly is the signature of Gov. Greg Abbott.
The state of Texas’ gold bars are currently at the Hong Kong and Shanghai Bank in New York. The University of Texas Investment Management Co. owns them. They are worth over $1 billion. And Capriglione wants them stored neared to home. The exact location has yet to be determined.
“The depository would be an agency of the state located in the Office of the Comptroller, directed by an administrator appointed by the Comptroller with the advice and consent of the Governor, Lieutenant Governor and Senate,” a fiscal analysis of the bill underlined.
Apart from gold, the Texas Bullion Depository could also store other precious metals by other institutions. The strategy could enable Texas generate revenue from storing the others’ important gold. Capriglione said Texas pays $1 million yearly for its gold storage in New York. He noted the scheme could be replicated for the Texas Bullion Depository.
The depository, once fully operational, would work more like a bank, Capriglione pointed out. “What that does is create kind of this economic shelter, if you well, for the state of Texas to be able to protect it from an imbalance, to hedge against an economic downturn or inflation,” he said.
The Office of the Comptroller will immediately set up the guidelines of the depository once Abbott signs the legislation. This could take a few months, Capriglione said.