Another Step Forward For Sound Money: Location Picked For Texas Gold Depository

Tyler Durden's picture

Via SchiffGold.com,

The Texas Bullion Depository took a step closer becoming operational earlier this month when officials announced the location of the new facility.

The creation of a state bullion depository in Texas represents a power shift away from the federal government to the state, and it provides a blueprint that could ultimately end the Federal Reserve’s monopoly on money.

Gov. Greg Abbot signed legislation creating the state gold bullion and precious metal depository in June of 2015. The facility will not only provide a secure place for individuals, business, cities, counties, government agencies and even other countries to store gold and other precious metals, the law also creates a mechanism to facilitate the everyday use of gold and silver in business transactions. In short, a person will be able to deposit gold or silver in the depository and pay other people through electronic means or checks – in sound money.

Earlier this summer, Texas Comptroller Glenn Hegar announced Austin-based Lone Star Tangible Assets will build and operate the Texas Bullion Depository. On Nov. 3, the company announced it will construct the facility in the city of Leander, located about 30 miles northwest of Austin. According to the Community Impact Newspaper, the Leander City Council has approved an economic development agreement with Lone Star. Construction of the depository is expected to begin in early 2018. Lone Star officials say it will take about a year to complete construction of the 60,000-square-foot secure facility located on a 10-acre campus.

The depository will operate out of Lone Star’s existing facilities during construction. It will provide services nationwide beginning in early 2018, with international services to be offered in the future phases, according to Community Impact.

“This state-of-the-art facility will provide tremendous benefits to the citizens of Leander and will give Texans a secure facility right here in the Lone Star State where their gold and precious metals will be kept safe and close at hand,” Hegar said in the press release.

The Texas Bullion Depository has already established an online presence. You can visit the depository website HERE.

According to an article in the Star-Telegram, state officials want a facility ‘with an e-commerce component that also provides for secure physical storage for Bullion.’ Officials say plans for a depository should include online services that would let customers accept, transfer and withdraw bullion deposits and related fees.

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.

“Over time, as residents of the state use both Federal Reserve notes and silver and gold coins, the fact that the coins hold their value more than Federal Reserve notes do will lead to a ‘reverse Gresham’s Law’ effect, where good money (gold and silver coins) will drive out bad money (Federal Reserve notes).

 

“As this happens, a cascade of events can begin to occur, including the flow of real wealth toward the state’s treasury, an influx of banking business from outside of the state – as people in other states carry out their desire to bank with sound money – and an eventual outcry against the use of Federal Reserve notes for any transactions.”

University of Houston political science professor Brandon Rottinghaus called the development of a state gold depository a step toward independence.

“This is another in a long line of ways to make Texas more self-reliant and less tethered to the federal government. The financial impact is small but the political impact is telling, Many conservatives are interested in returning to the gold standard and circumvent the Federal reserve in whatever small way they can.”

The Texas gold depository will create a mechanism to challenge the federal government’s monopoly on money and provides a blueprint for other states to follow. If the majority of states controlled their own supply of gold, it could conceivably make the Federal Reserve completely irrelevant.

The depository is part of a broader movement at the state level to facilitate sound money, and potentially undermine the Fed’s money monopoly. A number of states have repealed taxes on the sale of gold and silver over the last two years, and that trend is expected to continue. A legislator in Alabama has already filed a bill to repeal the sales and use tax on gold, silver, platinum, and palladium bullion and coins in that state. As Ron Paul has said, “We ought not to tax money – and that’s a good idea. It makes no sense to tax money.”

Reporting from the Tenth Amendment Center contributed to this report.

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DownWithYogaPants's picture

Are there going to be school books in the depository too?  I recommend no rides in open top limos.

We definitely need competition in money.  But something tells me the banksters will shoot anyone who does not comply with their monopoly with a smile.

Ahmeexnal's picture

They have chosen the book depository from which Oswald "fired"?

DownWithYogaPants's picture

The more I study the JFK thing the more I realize the Oswald of the book depository got a really shitty deal.  

Billy the Poet's picture

I heard somewhere that he was just a patsy.

Endgame Napoleon's picture

Maybe, the tall hats in Texas are doing it as a signal that they are mad as h** and not gonna take it anymore from an over-powerful federal government that is irresponsibly leaving the nation’s currency vulnerable, printed out constantly and riding around the globe in flashy cars, openly and floppily flaunting questionable wealth, unprotected by enough big, burly, rock-solid hunks of gold.

SILVERGEDDON's picture

A year out to build it and open gives me enough time to build a back door underneath the vault, for inspection, examination of the inventory, and my own personal taxation on the vault contents periodically.

If I can carry it away under my own power, it's mine. Been practicing dead lifts and fireman's carry. Got up to 300 lbs so far............................ 

Raffie's picture

Thought they started building it this summer. Didn't know they was still looking for a location.

Here is who will be in charge of the gold vault. https://algreen.house.gov/

Good times..

Beowulf55's picture

So he signed legislation in early 2015 and this is as far as they have gotten?  WTF?  Who has been dragging their feet and why?

Justin Case's picture

Is the space going to be shared with the hard drives that have bitcoin wallets on them too?

ReturnOfDaMac's picture

No shots required cutiepants.  What will happen is neighboring states/banks will conduct transactions with this "bullion" bank and drain it dry.  Just like the US Gvt was drained dry in 1971. Same playbook, same outcome.  Mark my words, no violence will be required at all.  Honest money cannot survive in a world run by crooks, see Greshams law.

s2man's picture

So, you are saying the banksters are going to shoot Texas?

koaj's picture

Sounds like Texas is going to need some "freedom" in the near future...

 

I hope not

DownWithYogaPants's picture

Yikes.  I am getting sorely tired of that fact you just stated.  It's comic book level logic that we "have to use federal reserve notes"

We're ruled by the sociopaths and psychopaths that inhabit the banking space.

moorewasthebestbond's picture

Texas will be "liberated" just like Libya was before they got a chance to launch their gold backed currency.

cynicalskeptic's picture

any entity that makes a move towards gold and away from the use of Federal Reserve Dollars seems to receive a visit from outside military forces (and their gold reserves disappear in short order)

wonder how long Texas will last........

Money Honey's picture

A Buy Position in Gold – Heads I Win, Tails I don’t Lose

http://www.commoditytrademantra.com/gold-trading-news/a-buy-position-in-...

Markets have now priced in a 100% chance of a Fed rate hike in December. Gold is just waiting for confirmation from the Fed in a few weeks. We have a “Heads I win, tails I don’t lose” situation. If you take a long position in gold today & the Fed raises rates, nothing happens to the price because the rate hike is already priced in. But if the Fed does not raise rates, gold prices will spike suddenly & dramatically.

 

When an Insatiable Appetite for Gold gets Diverted to Silver …

http://www.commoditytrademantra.com/gold-trading-news/when-an-insatiable...

India in the past has had a history of being the largest importer of gold, which it has only recently been dethroned from, due to India’s war on gold. Their appetite for gold is insatiable and therefore it was only logical to assume that a large percentage of the funds intended to flow into gold, were going to go to the next best thing – SILVER. This has and continues to prove to be the case.

 


Spectre's picture

Rock on Texas !

Rakksan's picture

Fund those pension funds. Rock on suckers.

Brazen Heist's picture

Gold standard doesn't work. Refer to 1971.

Something else is needed.

DownWithYogaPants's picture

It just does not work with a dishonest currency such as the Federal Reserve prints.

I am pretty sure the gold standard does work if you wanted to make notes for it.  

By "work"  you mean you can't cheat as much?  

By the way:  Your icon suggests you are giving exams.  Tmosley wants one.

Brazen Heist's picture

By "work" I mean that it doesn't solve the bank run problem.

The gold standard, and the fiat fractional reserve system, are still based on making way more claims on the underlying asset than the underlying asset itself. In the case of gold, claims on gold (USD) were pumped out too much. In the case of fiat, too much deposit money is created over and above bank reserves. Both lead to bank runs when systemic crises occur and shake faith in the confidence trickery.

At least digital cash eliminates the possibility of bank runs. 

DownWithYogaPants's picture

I do not care about the banks.  I care about having a working currency.  Apparently you're worried about them and I am wondering if your initials are Jamie Dimon. 

We need solid free as in free speech money.  Digital will only lead to being totally turned into slaves.

 

Brazen Heist's picture

Crypto can be free speech currency. Not owned by governments or banks.

It lives in the internet of things. The Internet will be one of the last bastions for free speech that we will have, in this corrupt system.

Where else can you vent and share controversial ideas? We come to ZH or other places where censorship is minimal.....mainstream society is too fucking fragile and afraid to handle it.

That people want to be lead and become braindead slaves hooked on consumerism, propaganda and easy fixes, well, that's their problem. There will ALWAYS be wolves who take advantage. We are not evolved enough as a species yet for true enlightenment, responsibility or anarchy.

 

manofthenorth's picture

But, but, but the suspension of conversion  of gold for dollars is temporary.....

it will be resumed in uhh... ummm.....

https://www.youtube.com/watch?v=7_Xw5tWsOQo

Note; NEVER trust a DICK

Beowulf55's picture

Thank god my folks didn't name me Richard......

tion's picture

>Digital will only lead to being totally turned into slaves.

There are way too many megalomaniacal anti-humanist freakshows in the blockchain space.  They mostly get to hide behind their digital walls, rarely coming out to perfume themselves with flowery rhetoric.  The many liberty lovers in the space might not know what hit them until it's too late, they don't even realize that a war of sorts is already beginning, and they are not fighting back.  Blockchain currency alone is dangerous.  We need solid free money that can also compete.

Folkvar's picture

The classical gold standard worked a treat and if it wasn't for the same evil Jewish families that still rule over us today WW1 would not have happened and we'd still have that gold standard. The gold standards employed after WW1 weren't the same, they didn't have a hope of success. 

rf80412's picture

Explain the free silverites and William Jennings Bryan's "cross of gold" speech.

Gold backed money isn't any improvement on fiat paper if you don't have any of it, or have to go into debt to get some of it because labor doesn't pay.

HRClinton's picture

BS!  What would perfectly for the 21st Century, is cyber-gold backed by real gold. IOW...

AU + BTC, where...

   AU as phyz store (the precious Reserve, that too impractical as Street Money). 

   BTC as Street Money.  Portable and accepted everywhere.

You can't "confiscate" a CC Wallet that's printed and also backed on a Thumbdrive, and resting in your safe (at home or Safety Deposit Box). You can't confiscate it at Customs either.

--> Fork You, (((fiat Banksters)))!

tion's picture

I hope you didn't sell all your gold.  I don't think that's how it will play out.  They may or may not let the killer loose but I don't think they will do it until after BTC has blackholed enormous financial assets, if at all.  But if they do, I don't think BTC will survive it as you'd like to think, because it is being built as something completely separate from BTC.

bluskyes's picture

Why would you point to the moment the fraud was realized, rather than when it began?

Rakksan's picture

Unfunded pension funds don't work.  Texas for Dummies.

tmosley's picture

A decade late and a trillion dollars short (gold futures).

HRClinton's picture

Mosley, do you...

   > Buy & Hold?

   > Buy & Sell?

   > Mine?

RSVP

tmosley's picture

Normally I buy and hold, but with this tether ponzi coming to light, I'm just holding some on the exchange to take advantage of it until it collapses, draining off profits as I go. After the collapse, I will buy back in at a (presumably) lower price. Reestablish my core positions (buy and hold), and fund my trading wallet again.

I don't mine.

Womb Service's picture

The tether thing is weird (and worrying) but they clearly state in their ToS that they are not obligated to redeem tether for USD. I'd be more worried about Bitfinex going down. With so many exchanges now, I still don't see this being MtGox part deux.

You have balls keeping cash or BTC on an exchange. I've been hodling for almost five years and will continue to hodl. I would have lost my shirt by now if I'd attempted to trade it. Good luck.

semperfi's picture

Has anybody besides me noticed that the US Constitution has NEVER been amended in regards to ONLY gold & silver to be used "to pay debts" ?

 

rf80412's picture

A return to specie-backed money might be more popular if the people most in favor of it weren't drooling over the prospect of anarchy and financial apocalypse where all the "sheeple" either starve or have to come begging and whoring in order to get some of your metal.  A consumer's paradise where anything you could ever want can be had for a trivial amount of your little hoard that if dollars still existed would be worth $500k an ounce or something.

semperfi's picture

popular?

oh boy - opened up that can of worms

here we go...

brainwashing by the Controllers has made gold/silver unpopular amongst the Controllees (aka, sheep)

on the other hand, things that are popular in the USA include cocaine, heroin, opiods, rap music, criminal public servants, dancing with the stars, Neeling Football League, ad-infinitum...

semperfi's picture

look like my rant on popular may be unpopular - doesn't really matter if it is or not - what I stated is true whether it gets up or down voted - go ahead and vote as you please

ReturnOfDaMac's picture

Jeebus H Christ, another one of you "constitution" writers.  Don't you know the minute you get a central bank, the constitution gets marked: "for reference only"?

"Give me control of a nations money, and I care not who makes its laws" (or even what those laws are ---my addition see bank fraud, money laundering, fines, too big to jail).

semperfi's picture

shortly after I wrote the post above gold & silver (derivatives) started to spike ;)

Dragon HAwk's picture

They can Save a lot of Money on Security. that yellow stuff ain't worth shit, nobody wants it.   /s

moorewasthebestbond's picture

More like another step towards civil war.

 

The South was right!

silverserfer's picture

 put a sign in the window that says "no jews allowed" just cause its texas. That would be the cherry on top. 

Rakksan's picture

It was not the Jews who gave you suckers the Houston Pension Fund!