Texas wants its gold back and New York better pay up. The Lone Star State is unique among the states in keeping a sizable about of money in gold deposits versus futures or other investment positions, according to The Associated Press.
Texas Gov. Greg Abbott applauds the move. After signing the bill into law, he tweeted:
AUSTIN, Texas (Associated Press) — 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.
Read the full article at the Associated Press
Photo courtesy of Google