Contact us
CALL US NOW 1-888-GOLD-160
(1-888-465-3160)

Texas Gold Bullion Depository Getting Closer to Reality; Will Allow Texans to Do Business in Gold

  by    0   2

Last week, the Texas House unanimously passed a bill that would facilitate the establishment and operation of the Texas Bullion Depository; helping to undermine the Federal Reserve’s monopoly on money.

The creation of a state gold depository in Texas represents a power shift away from the federal government to the state, and it provides a blueprint that could ultimately end the Fed. The facility will not only provide a secure place for individuals, business, cities, counties, government agencies, and even other countries to to store gold and other precious metals, the law also creates a mechanism to facilitate the everyday use of gold and silver in business transactions. In short, a person will be able to deposit gold or silver – and pay other people through electronic means or checks – in sound money.

Gov. Greg Abbot signed a law creating a state gold bullion and precious metal depository in the summer of 2015. Since then, the state has moved forward in establishing the depository.

As part of the process, Rep. Giovanni Capriglione (R-Keller) introduced House Bill 3169 (HB3169) in March. The legislation includes various provisions for the operation and administration of the Texas Bullion Depository, to define the roles of depository agents, to direct the appropriation of money from depository fees, charges, penalties, and other amounts related to the depository. The bill also  includes provisions to exempt precious metals in the depository from property taxes.

Passage of the bill would represent a major step forward in the process of establishing the Texas Bullion Depository and in facilitating sound money in Texas.

On April 20, the Investment and Financial Services Committee passed HB3169 by a 5-0 vote. It was fast-tracked to from there, and the full House passed it by a 143-0 vote on May 5.

Once operational, private individuals and entities will be able to purchase goods and services, using assets in the vault the same way they use cash today. Exemption from taxation of precious metals stored in the vault will further facilitate the use of stored bullion as money.

This would incentivize the use the Texas Bullion Depository. If they then start allowing checks and debit cards to be used in conjunction with the bullion accounts – likely the next step  – it would essentially create a specie- and bullion-based bank introducing currency competition with Federal Reserve notes.

Constitutional tender expert Professor William Greene wrote a paper for the Mises Institute arguing that enough states start transacting business in sound money, it would effectively nullify the Federal Reserve and end the federal government’s monopoly on money.

“Over time, as residents of the state use both Federal Reserve notes and silver and gold coins, the fact that the coins hold their value more than Federal Reserve notes do will lead to a ‘reverse Gresham’s Law’ effect, where good money (gold and silver coins) will drive out bad money (Federal Reserve notes).

“As this happens, a cascade of events can begin to occur, including the flow of real wealth toward the state’s treasury, an influx of banking business from outside of the state – as people in other states carry out their desire to bank with sound money – and an eventual outcry against the use of Federal Reserve notes for any transactions.”

The Texas gold depository creates a mechanism to begin this process, and provides a blueprint for other states to follow.

This article by Michael Maharrey was originally published by the Tenth Amendment Center.

Get Peter Schiff’s most important Gold headlines once per week click here – for a free subscription to his exclusive weekly email updates.
Interested in learning how to buy gold and buy silver?
Call 1-888-GOLD-160 and speak with a Precious Metals Specialist today!


Related Posts

Tanzania Establishing Gold Reserves

Yet another country wants gold. On Monday (Sept. 25), the Bank of Tanzania (BoT) announced it is buying gold from domestic sources to establish its own reserves.

READ MORE →

Americans Worried About a Credit Crunch; What Happens When Consumers Can’t Charge It?

Americans are worried about a looming credit crunch. That’s a big problem for an economy that runs on credit cards. One of the reasons for economic optimism you’ll hear bandied about out there in the mainstream is “the American consumer is strong” and consumer spending is “holding up” despite price inflation. But nobody seems to […]

READ MORE →

US Senator Allegedly Bribed With Gold

Last week, a federal grand jury indicted Democrat Senator Bob Menendez and his wife Nadine Arslanian Menendez on bribery charges. According to the indictment, the senator and his wife took bribes, including 13 gold bars, from three New Jersey businessmen with Egyptian ties.

READ MORE →

Japanese Go on Gold-Buying Spree as Price Inflation Runs Rampant

With price inflation running rampant in Japan, Japanese households are rushing to buy gold. The sudden surge in demand, along with the devaluation of the yen, has driven the price of gold to record highs in yen terms.

READ MORE →

Banks Borrowed Another $2.2 Billion from Bank Bailout Program in August

The Federal Reserve continues to bail out US banks as the financial crisis that kicked off last March continues to smolder behind the walls. Banks borrowed an additional $2.2 billion from the Federal Reserve’s bank bailout program in August. This was on top of the $3.7 billion they borrowed in July.

READ MORE →

Comments are closed.

Call Now