Fort Knox and the New York Federal Reserve are the most highly recognized gold depositories in the U.S. Legislation approved in Texas will soon allow the “Lone Star State” to store precious metals like gold and silver through a bullion depository for public agencies, business and nonprofit corporations, banks as well as individuals. At the time of this writing, this legislation is expected to be signed by the governor.
All of this is the brainchild of Rep. Giovanni Capriglione, R-Southlake, who has championed this measure for two years. It authorizes the state comptrollers office to establish the depository, making Texas the first state in the nation to take this unprecedented step. Undoubtably one of the catalysts prompting this measure are investment funds connected to the state’s public universities and other entities, including over $1 billion dollars in gold that Texas has currently stored in other states
Somewhat surprisingly, news of this has led to a global groundswell of interest among individuals desiring to secure gold in this mecca of the American Southwest. Some surmise that maintaining gold within the state will allow avoidance of federal oversight, while capitalizing on storage efficiencies that accommodate large amounts with minimal space.
This new legislation could foster a new normal for gold and silver deposits thereby fostering an environment of sound money. Here, by tying this to regular, daily consumer transactions, this new initiative could have a broad reaching effect on the economy. Experts believe that gold and silver transactions across multiple states will have a chilling effect on the federal government’s monopoly on money
What Does This All Mean?
For starters let’s give the State of Texas props for this ingenious promotional branding move. It’s no wonder that the economic fortunes of the “Lone Star State” are the envy of the nation. The secret Texas barbeque sauce here: As the state receives it’s anticipated mother lode of gold and silver deposits, it will be able to earn revenue off of the fees. Moreover it allows the state to leverage their own precious metal assets to hedge against an economic downturn or inflation. As the slogan goes, “Don’t Mess With Texas,” particularly as it relates to the state’s repute as a robust economic engine of prosperity.
It’s no secret that the Texas’ fiercely self reliant, independent style is at odds with Washington. Some in fact have suggested that this latest initiative could be characterized as a “middle finger” shot at the feds. Could all of this be signaling rumblings of discontent leading to howls of succession from the union?
It’s an intriguing question that is certainly worth its weight in gold.
Michael Scott, Bookmark Global Connect, Inc