Texas is the latest entity to begin efforts being undertaken by
various government bodies globally to repatriate physical gold held
elsewhere and direct the metal’s future.
Olenka Hamilton reports at SpearsWMS.com that Texas expects to move more than
$861.4 million in gold from HSBC Bank vaults in New York City to
Texas’ first state-administered bullion depository, which is scheduled
to open in the state capital of Austin in December 2018.
Bringing the gold back to the Lone Stare State is the result of 2015
legislation introduced by Texas State Rep. Giovanni Capriglione,
passed by the Texas Legislature and signed into law by Texas Gov. Greg
Abbott. According to news reports, Capriglione’s initiative is aimed
at relieving Texas of dependence on Wall Street banks and the Federal
Reserve while bolstering the state’s “independence and sovereignty.”
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Andy Duehren reports at TexasTribune.com that Capriglione’s legislation
did not secure the traction it needed for passage until bill language
was rewritten to ensure there would be no costs to the state for the
Bullion Depository, by contracting with a private vendor and
Texas has already engaged the services of Austin-headquartered Lone
Star Tangible Assets to run the depository under a five-year contract,
with two one-year extensions. Lone Star Tangible Assets could be able
to open the depository initially in its current facility by January
2018 while a new dedicated facility is under construction.
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The depository will be able to store gold and other precious metals,
permitting users to open accounts and pay for transactions with them,
according to Duehren.
The $861.4 million in gold at stake are bullion assets overseen by
the University of Texas Investment Management Company for both the
University of Texas and Texas A & M.
It is being reported that the Texas Bullion Depository will not be a
member of COMEX, a division of the New York
Mercantile Exchange. That may be an obstacle to the gold moving
to the depository, since one stipulation requires the depository to be
a member of the Chicago Mercantile Exchange’s COMEX platform where
gold futures contracts are traded.