Texas to Create Unique Bullion Depository; May Repatriate Gold Reserves
On Friday, Texas Governor Greg Abbott approved a law creating the Texas Bullion Depository – the first state-level precious metals depository in the United States. The bill would also allow Texas to repatriate $1 billion of gold back into the state. The law will go into effect immediately, though it is still unknown exactly where and when the Depository will be built.
In passing this law, Texas joins the ranks of major global economies that want to bring their gold home. Germany, Austria, the Netherlands, and other European nations have already begun to repatriate gold from the New York Federal Reserve or have proposed to begin doing so.
In the midst of uncertain currency wars, countries want to bring this essential reserve asset back home in case of financial emergencies. Some analysts also see it as a sign of distrust of the Fed and an indication that the Fed may not hold as much bullion as it claims.
The Texas Bullion Depository will accept deposits from businesses, state government agencies, and – most importantly – individual citizens. Governor Abbott said that establishing this Depository means Texas will be, “increasing the security and stability of our gold reserves and keeping taxpayer funds from leaving Texas to pay for frees to store gold in facilities outside our state.”
However, the bill goes beyond that by laying the groundwork for transactions to occur in gold and silver. The bill includes the following language:
a depository account holder may transfer any portion of the balance of the holder’s depository account by check, draft, or digital electronic instruction to another depository account holder or to a person who at the time the transfer is initiated is not a depository account holder.”
That last clause is key — account holders in the Texas Bullion Depository may eventually be able to cut checks or even use debit cards to draw funds directly from their physical gold holdings.
The Tenth Amendment Center wrote an excellent article exploring the long-term repercussions of Texas’ historic law:
In short, a person will be able to deposit gold or silver – and pay other people through electronic means or checks – in sound money. Doing so has the potential to open the market to sounds money in day-to-day transactions.
By making gold and silver available for regular, daily transactions by the general public, the new law has the potential for wide-reaching effect. Professor William Greene is an expert on constitutional tender and said in a paper for the Mises Institute that when people in multiple states actually start using gold and silver instead of Federal Reserve Notes, it would effectively nullify the Federal Reserve and end the federal government’s monopoly on money.”
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[…] Texas isn’t the only one trying to return to a currency backed with gold though: […]
Can you tell me what other states are considering this? Is AZ one of them?
[…] Texas to Create Unique Bullion Depository; May Repatriate Gold Reserves […]
Just trying to figure out how much gold would be
an equal share per person.
Amount of gold in world? divided by people in world?
Anyone have those numbers?
And how about silver too?
There are 5.9 billion oz. Above ground so it’s less than 1 oz per person.
This is great news! However, the Tenth Amendment Center pointed out the critical hurdle “it would effectively nullify the Federal Reserve.”
The Federal Reserve and all its puppets will not go quietly into the night. Rather, they will kill gold as currency. My guess is IRS tax on gold transfer within and to TX repository at 30% capital gains based on an ever inflating USD. When the IRS values oz Au per USD then as USD inflates, gold always appears to “cost more”. The IRS will tax that change in value using USD in the denominator.
Anyone have other ideas how the Federal Reserve will sabotage TX?
They should erect it in San Antonio, adjacent to the Alamo, since if this plays out as anticipated, it will also be attacked. However, Texas won’t be defeated twice, so there might need to be some missle silos buried alongside it. Smart move by Texas.
To S. Smith,
You should be able to calculate the amount of gold or silver there would be per person were the metals divided equally per person. Google how much of each there is and divide the number by the world population. Such a figure would be useless. Your question suggests you’re harkening to the “amount of money” fallacy (as well as the “should be equally distributed” fallacy).
The amount of gold and silver is not important in its use as money. Literally, a pound of each could be sufficient. You’d have to work with incredibly small divisions of the metals, but it would still work. In a real, just, moral, pro-human society, money is not “distributed” per se, it is earned by freely creating and trading value.