Texas Bullion Depository is the Best Way to Protect Your Gold
Posted: Wed Sep 11, 2019 12:02 pm
I'm going to argue the Texas Bullion Depository is a far better option than any other geographical diversification idea.
The past few months I’ve done a deep dive on storing gold in the Texas Bullion Depository as well as the implications of creating a state gold-backed currency. Very few people understand that creating a golds-backed currency is a big deal. The depository has been discussed briefly here and there on this forum but there’s never been a full discussion on the merits of the Depository.
Main benefits
- Negligible counterparty risk. The depository is a state agency of the Texas Comptroller of Public Accounts. It is wholly owned and guaranteed by the State of Texas much like the Perth Mint is guarenteed by the government of Western Australia. Unlike financial institutions, Texas does not have shareholders or owners. As such, there is no incentive to steal or appropriate gold held in the depository. Texas has a balanced budget requirement and is financially stable. In fact Texas maintains a Rainy Day Fund currently valued at $12.5B.
- Deposits held within the Texas Bullion Depository are covered by an all-risk policy underwritten through the Lloyd’s of London Insurance Marketplace. The policy is reviewed and approved by the Depository Administrator and it covers 100% of all assets stored in Depository Account Holder accounts. Additionally, the policy maintains language that permits automatic increases in limits as new depository accounts are opened.
- By law the depository cannot loan out the gold or engage in any other financial activity other than storing gold or offering e-coommerce services.
- The depository is outside the banking system. Unlike a bank, the depository can't shut down or seize your safe deposit box.
- All account information submitted to the Texas Bullion Depository is encrypted in at least 256-bit encryption, data is encrypted in transit and at rest. Your personally identifiable information is never stored in an unencrypted manner.
- The Texas Bullion Depository maintains its own internal security and investigation team, which is supplemented by Texas Law Enforcement stationed on-site every day.
-You can either ship your gold directly to the depository or purchase from the US Gold Bureau and have them put it in storage for you. US Gold Bureau current vault facility serves as the initial location for the depository as the company works to build a new vault facility for the state of Texas. Depository officials have told me they plan to move to the new facility early in 2020. Lone Star Tangible Assets (LSTA) partners with the Comptroller’s office to build and operate the Texas Bullion Depository. LTSA owns US Gold Bureau.
- Section A2116.023 of the bill that created the depository states: “A purported confiscation, requisition, seizure, or other attempt to control the ownership … is void ab initio and of no force or effect.” Effectively, the state of Texas will protect any gold stored in the depository from the federal government.
- A debit card will be available soon. Once the Depository debit card comes online, Texas may well begin discussions with the IRS to lift capital gains taxes on gold held at the depository. Failing that, Texas may appeal directly to the Supreme Court where Texas would seem to be on solid contitutional grounds. It’s hard to deem gold as a “collectible” when Texas is clearly using gold as currency in day-to-day transactions as allowed by Article 10 of the Constitution. Texas has already taken the steps of creating a bullion depository, removing sales tax from precious metals, and is settting up a gold-backed currency. They have gone this far so why stop now?
- Any profits made will be handed to the general revenue fund of Texas, potentially benefiting taxpayers. This could be a sizable revenue generator for the state of Texas. This would be an extra incentive for Texas to challenge IRS taxation of gold. If Texas is successful in eliminating federal taxes on gold, one can easily envision billions of dollars flowing into Texas.
The past few months I’ve done a deep dive on storing gold in the Texas Bullion Depository as well as the implications of creating a state gold-backed currency. Very few people understand that creating a golds-backed currency is a big deal. The depository has been discussed briefly here and there on this forum but there’s never been a full discussion on the merits of the Depository.
Main benefits
- Negligible counterparty risk. The depository is a state agency of the Texas Comptroller of Public Accounts. It is wholly owned and guaranteed by the State of Texas much like the Perth Mint is guarenteed by the government of Western Australia. Unlike financial institutions, Texas does not have shareholders or owners. As such, there is no incentive to steal or appropriate gold held in the depository. Texas has a balanced budget requirement and is financially stable. In fact Texas maintains a Rainy Day Fund currently valued at $12.5B.
- Deposits held within the Texas Bullion Depository are covered by an all-risk policy underwritten through the Lloyd’s of London Insurance Marketplace. The policy is reviewed and approved by the Depository Administrator and it covers 100% of all assets stored in Depository Account Holder accounts. Additionally, the policy maintains language that permits automatic increases in limits as new depository accounts are opened.
- By law the depository cannot loan out the gold or engage in any other financial activity other than storing gold or offering e-coommerce services.
- The depository is outside the banking system. Unlike a bank, the depository can't shut down or seize your safe deposit box.
- All account information submitted to the Texas Bullion Depository is encrypted in at least 256-bit encryption, data is encrypted in transit and at rest. Your personally identifiable information is never stored in an unencrypted manner.
- The Texas Bullion Depository maintains its own internal security and investigation team, which is supplemented by Texas Law Enforcement stationed on-site every day.
-You can either ship your gold directly to the depository or purchase from the US Gold Bureau and have them put it in storage for you. US Gold Bureau current vault facility serves as the initial location for the depository as the company works to build a new vault facility for the state of Texas. Depository officials have told me they plan to move to the new facility early in 2020. Lone Star Tangible Assets (LSTA) partners with the Comptroller’s office to build and operate the Texas Bullion Depository. LTSA owns US Gold Bureau.
- Section A2116.023 of the bill that created the depository states: “A purported confiscation, requisition, seizure, or other attempt to control the ownership … is void ab initio and of no force or effect.” Effectively, the state of Texas will protect any gold stored in the depository from the federal government.
- A debit card will be available soon. Once the Depository debit card comes online, Texas may well begin discussions with the IRS to lift capital gains taxes on gold held at the depository. Failing that, Texas may appeal directly to the Supreme Court where Texas would seem to be on solid contitutional grounds. It’s hard to deem gold as a “collectible” when Texas is clearly using gold as currency in day-to-day transactions as allowed by Article 10 of the Constitution. Texas has already taken the steps of creating a bullion depository, removing sales tax from precious metals, and is settting up a gold-backed currency. They have gone this far so why stop now?
- Any profits made will be handed to the general revenue fund of Texas, potentially benefiting taxpayers. This could be a sizable revenue generator for the state of Texas. This would be an extra incentive for Texas to challenge IRS taxation of gold. If Texas is successful in eliminating federal taxes on gold, one can easily envision billions of dollars flowing into Texas.