Proposed Texas legislation: gold bullion repository

[pmbug]

North Carolina considering converting some savings funds to gold and storing it in the Texas depository:

...
A group of House Republicans filed a bill in mid-April that would have the state use $2 billion from its savings reserve to buy gold bullion. The bill sat idle in the House Appropriations Committee until Thursday, when it was sent to the Committee on State Government. It’s set for a committee hearing Wednesday.

Rep. Mark Brody, the bill’s lead sponsor, said in an email last week that the value of the gold proposed for purchase will be lowered to $400 million to $500 million in a revised bill. House bill 721 proposes to store North Carolina’s gold in a bullion depository the state of Texas created in 2015. Deposits were stored in Austin until a new facility opened outside the city in 2020.

Dissatisfaction with the Federal Reserve is at the heart of the North Carolina bill.

“The reason – the federal government is consistently and increasingly devaluing our currency,” Brody said in his email. “To begin to set aside an amount of physical gold over a number of years will put NC in a better financial position should the devaluing process turn into hyperinflation.”

Under the bill, North Carolina’s gold would be stored in Texas while the state Treasurer studies the cost and benefits of establishing a North Carolina-administered bullion depository. The gold would be moved from Texas if North Carolina establishes its own vault or if it needs to be sold to help North Carolina pay its bills.
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NC House Republicans want state savings held as gold bullion | NC Newsline

North Carolina House Republicans want state savings held as gold bullion. A bill would study establishing a state gold depository.

ncnewsline.com

 

[CiscoKid]

I'm certainly in favor of this, but the really interesting part will be the reaction of the fed when they see gold leaving their vault.

Assuming there is any gold there to take back...

I remember when Germany wished to repatriate their gold that was supposedly being held in New York. They were told "no". Then they asked if they could at least see it. They were told "no" again. I think it was around 2013 when Germany asked for it back and it wasn't until 2017 that they finally received it.

 

[pmbug]

... I think it was around 2013 when Germany asked for it back and it wasn't until 2017 that they finally received it.

Bundesbank to Repatriate 374 Tons of Gold From Bank of France, Substantial Portion of Gold Held at t

http://www.silverdoctors.com/bundesbank-to-repatriate-374-tons-of-gold-from-bank-of-france-yet-to-be-announced-portion-of-gold-held-at-the-ny-fed/ While Bernanke spent his afternoon today outlining why the gold standard can never work (never mind the fact that it worked perfectly for 2...

www.pmbug.com

 

[pmbug]

I went looking for updates this morning...

Tennessee might end up with their own depository: ...

Tennessee's bullion depository bill in the state House was renumbered (HB1480) and deferred until next year. The companion bill in the state Senate (SB0150) is waiting for a committee to process it.

Tennessee did manage to pass (and the Governor signed it) HB1479 which allows the State to buy and sell physical gold and precious metals and store them "at the state depository."

North Carolina considering converting some savings funds to gold and storing it in the Texas depository: ...

HB721 passed the state House and is awaiting consideration in a state Senate committee.

 

[pmbug]

Oklahoma wants in on the action:

Oklahoma Bill Would Establish Gold and Silver Bullion Depository | Tenth Amendment Center

This would not only create a safe place to store precious metals; it also has the potential to facilitate the everyday use of gold and silver in financial transactions in Oklahoma and set the stage to undermine the Federal Reserve’s monopoly on money.

blog.tenthamendmentcenter.com

 

[pmbug]

Cool idea. I wonder how many vault services do this...

 

[Peter89]

Cool idea. I wonder how many vault services do this...

It works only if metals are stored in a segregated way i.e. my metals are physically separated from yours. It's as if the investor's pieces had his name on them.
AFAIK the usual way to store metals is a pool - not segregated (costs and logistic reasons).
Imo the idea of a video of yours metals makes sense only when metals are segregated-stored.

Imo no foto/video can replace an independent professional audit of all vaulted metals.