— 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.
Here is an interesting quote from the Star Telegram article:
“We are not talking Fort Knox,” Capriglione said. “But when I first announced this, I got so many emails and phone calls from people literally all over the world who said they want to store their gold … in a Texas depository."
The man who initially drafted this legislation is Rick Cunningham of the Texas Center for Economics, Law, and Policy. Mr. Cunningham is respected and is the Executive Director of the Center, but he is also a magna cum laude graduate of Texas A&M with a degree in Economics, as well as a graduate of the University of Chicago Law School, where he served as associate editor of the Law Review journal.
According to Mr. Cunningham . . . .
“But the truly game-changing aspect of this proposal … lies in the “system” part. This would be an advanced, state-owned and operated system of electronic payments and settlements, denominated in ounces of precious metals,barred from engaging in lending, leasing, speculative or derivative transactions, and always maintaining a 100% ratio of bullion reserves to account balances. At full scale, not only could it sustain state and local government operations, it could potentially sustain large swaths of the Texas economy, even in the face of a national financial or currency crisis.”