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Texas Gold Rush

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Need some place to store your gold bars? Move over Fort Knox, Texas is open for business!

 

Abbott Signs Law Creating Texas Depository for State Gold

Gov. Greg Abbott has signed a law creating a Texas Bullion Depository where the state -- and even ordinary residents -- can store gold.

The Republican said Friday that the measure will "repatriate $1 billion of gold bullion from the Federal Reserve in New York to Texas."

The state's gold reserves are controlled by various agencies, including investment funds tied to its public universities.

The depository would be a secure facility administered by the Texas comptroller. Its location has yet to be been determined.

Southlake Republican Rep. Giovanni Capriglione first proposed the state depository in 2013, but his idea didn't gain traction until this session.

The law allows state agencies, but also citizens, businesses, nonprofits and banks, to use the depository to hold gold and other precious metals.

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And you want to know where the one billion in gold they are bringing back to Texas came from? Here is the story from back in 2011.  Texas is getting ready and they are not leaving their gold in New York City!

 

University of Texas Endowment Holds $1 Billion Gold, 5% Of Its Portfolio

It should come as no shock to financial markets that university endowments have followed in the wake of central banks and hedge funds to become the newest major investors in  precious metals like gold.

Just as  central banks in China, India, Russia and many other nations view gold as a monetary reserve protection against the  falling dollar,  major academic institutions are  looking for new asset classes like precious metals and commodities  to produce returns that can be put to work as a source of funds  for a large portion of college operating expenses.

Friday,  as gold prices hit a new all-time high – $1486 an ounce($1500 is around the corner),the University of Texas Investment Management Co., revealed that 5% of its $19.9 billion endowment(it handles Texas A&M as well) was in actual bars of gold bullion  in a New York bank vault owned by HSBC Holdings, the London based global banking institution.  Not in any gold ETF  or individual gold mining shares, or in gold futures;l Texas took delivery of 6,643 actual bars of bullion, or 664,300 ounces– a quite unusual transaction for a university.

According to Bloomberg  Texas University’s decision to own gold was influenced by a successful hedge fund manager in Dallas, Kyle Bass, who made a fortune  shorting  sub-prime mortgage securities on the eve of the financial crisis. (I wrote a column about Bass’ killing  at the time) Bass is on the endowment’s board of directors, and reflects the view of several leading hedge fund managers such as George Soros, John Paulson and gold enthusiasts Frank Giustra and Thomas Kaplan, whom I have written about often.

Bass was quoted by Bloomberg Friday  explaining that “Central banks are printing more money than they ever have, so what’s the value of money in terms of purchases of goods and services. I look at gold as just another currency that they can’t print any more of.”

http://www.forbes.com/sites/robertlenzner/2011/04/17/university-of-texas-endowment-holds-1-billion-gold-5-of-its-portfolio/

 

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BTW..this story might have flown under the MSM radar..but Texas taking back its gold and making a depository in the state is a big deal!

 

Writing's On The Wall: Texas Pulls $1 Billion In Gold From NY Fed, Makes It "Non-Confiscatable"

The lack of faith in central bank trustworthiness is spreading. First Germany, then Holland, and Austria, and now - as we noted was possible previously - Texas has enacted a Bill to repatriate $1 billion of gold from The NY Fed's vaults to a newly established state gold bullion depository..."People have this image of Texas as big and powerful … so for a lot of people, this is exactly where they would want to go with their gold," and the Bill includes a section to prevent forced seizure from the Federal Government.

<snip>

Section A2116.023 of the bill states: “A purported confiscation, requisition, seizure, or other attempt to control the ownership … is void ab initio and of no force or effect.” Effectively, the state of Texas will protect any gold stored in the depository from the federal government.

And free from the threat of confiscation, private citizens can use gold and silver as money, completely bypassing the paper money system.

“People can legally do that with gold contracts. The difficulty is the implementation. Now Texas has set up a mechanism with the depository. We have accounts in that institution and can easily transfer back and forth certain amounts. So we can run our money system a gold or silver basis if we were so inclined,” said Vieira.

This would not be possible if the gold is stored in a bank because of the risks of bank holidays and bankruptcies. It would also not be possible if the federal government could confiscate gold.

According to Vieira, this anti-seizure provision rests on Article 1, section 10 of the Constitution of the United States, which obliges the States to not make anything tender in payment of debts apart from gold and silver coin. 

More info at the link below:

http://www.zerohedge.com/news/2015-06-13/writings-wall-texas-pulls-1-billion-gold-ny-fed-makes-it-non-confiscatable

 

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Is Texas’ Plan to Bring Home Its Stockpile of Gold Bars a Step Toward Secession?

Jul. 4, 2015 4:14pm

http://www.theblaze.com/stories/2015/07/04/is-texas-plan-to-bring-home-its-stockpile-of-gold-bars-a-step-toward-secession/

AUSTIN, Texas (AP) — Forget Fort Knox or the Federal Reserve. Texas has decided to start keeping its gold holdings within in its own borders. But what makes sense politically in such a sovereignty-loving place is creating a logistical conundrum.

Texas is the only state that owns an actual stockpile of gold, according to public sector and financial industry experts — not just gold futures or investment positions, but approximately 5,600 gold bars worth around $650 million. The holdings, stored at a New York bank, for some harken back to century-old fears about the security of currency not backed by shiny bullion.

The Legislature’s decision this summer to bring its gold cache home was hailed by many conservatives, and even some on the far left, who are suspicious of national government.

“There will always be the exact same amount of gold in there as the amount that was put in,” no matter what happens to the financial system, said Republican state Rep. Rep. Giovanni Capriglione, a former tea party organizer from the Dallas suburbs who authored the gold bill.

But for the Texas comptroller’s office, which has to implement the policy, the catch is that the new Texas Bullion Depository exists in name but not reality.

The law doesn’t say where the depository would be or how it should be built or secured. No funding was provided for those purposes or for leasing space elsewhere. Further complicating matters is a provision allowing ordinary people to check their own gold or silver bullion into the facility.

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.....approximately 5,600 gold bars worth around $650 million.

Something stinks here...

A "Gold Bar" at the Federal Reserve should weigh 400 Troy ounces. With the current approximate value of gold being $1,170 per Troy ounce 5,600 "Bars" should be about 2.6 Billion dollars worth of gold.

As to where to store them... hell 5,600 of them wouldn't take up much space. You could fit them all in a 6'X8' prison cell and they'd only stack about 4 feet heigh. Then weld the door shut until a better facility could be located or built. (Also makes it easier if someone tries to steal them, you don't have to take them very far. lol)

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Texas has just started a war with the fed by doing this and other states are watching closely and will follow suit IF the gold is actually in the NY vault. If it ain't in the vault then that's another battle. I doubt the location of the new depository will be revealed until it's a done deal.. Most likely SB1245 will pass allowing for citizens to use gold and silver in the depository to back electronic transactions in dollars. This is a full on bypass of using federal reserve notes! Yea!

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