“The Lone Star state isn’t exactly known for taking the conventional route: so when Texas announces plans to ‘repatriate’ $861 million worth of gold from a bank vault in Manhattan, it’s easy to wonder if they’re up to something.
Your suspicions will no doubt then be confirmed when you hear that this will all be housed in the first-state administered bullion depository to be opened in Austin in December 2018. Once up and running, the depository will serve as an alternative stash for gold and other precious metals in place of federally regulated banks or smaller unregulated storage facilities. The hope is for it to then expand into a larger commodities exchange, which would aim to challenge the existing commodities markets places in Chicago and New York, according to reports.
. . .
So the Texans’ gold move is part of a rising global trend – not just a US one, and is surely being driven by uncertainties and a subsequent lack of faith in the global financial system. Quantitative easing and increased money supply have also raised the prospect of higher levels of inflation across the globe.
. . .
And in the US, a least six other US states are already at it. Tennessee, Idaho, Utah, Arizona and Virginia are all making noises about bringing their gold reserves back from the US Federal Reserve and holding it locally.”
MK note: I was not aware that Tennessee, Idaho, Utah, Arizona and Virginia owned gold deposited at the NY Fed. The Lone Star gold is owned by the University of Texas the purchase and repatriation of which was suggested by Kyle Bass who serves as advisor to the UT Investment Management Company. Few Texans, at least the ones we know, would be opposed to the course of action being taken. He who owns the gold makes the rules.