Texas moving toward repatriating gold from New York
- Published: Jul 12, 2017, 4 AM
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 Texas Bullion Depository, by contracting with a private vendor and charging fees.
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.
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