Texas Bullion Depository Open for Business

Discussion of the Gold portion of the Permanent Portfolio

Moderator: Global Moderator

Post Reply
FarmerD
Executive Member
Executive Member
Posts: 458
Joined: Wed Jul 06, 2011 10:37 pm

Texas Bullion Depository Open for Business

Post by FarmerD » Fri Jan 04, 2019 7:39 pm

Looks like the Texas Bullion Depository is up and running. They charge 0.5% yearly for segregated storage. Here's some information about the depository.

The Texas Bullion Depository was designed to be different than other depository offerings from the very beginning. It was created to provide a safe and secure location for Texans, U.S. Citizens, and others to have a safe, insured location to store their valuable precious metal assets.

Unlike other depositories, the Texas Bullion Depository is a state agency of the Texas Comptroller of Public Accounts. The only offering of its kind in the United States of America.

It is operated by a private entity, but audited and overseen by the Texas Comptroller of Public Accounts. Most other depository offerings are only managed by the private depository management team with no oversight other than an accounting audit from time-to-time.

The Texas Bullion Depository offers a three layered auditing approach to ensure accuracy and safety of client assets.

The depository is managed and internally audited by Lone Star Tangible Assets, reports are provided daily to the Depository Administrator.

The Depository Administrator and internal audit team of the Texas Comptroller of Public Accounts maintains the ability to audit the depository at any time and regularly conduct audits of the assets held in the depository.

The Texas Bullion Depository is audited by a third party accounting firm on a regular basis.

In addition to regular oversight and auditing, the infrastructure of the depository has been designed to allow clients of the depository to access information at any time through their online account. This includes the ability to view photographic images of all deposits and withdrawals from their account as they occur at the depository.

The legislation that authorized the creation of the Texas Bullion Depository ensures governance and accountability are always at the forefront of depository operations – features that don’t exist at other private depositories in the United States and abroad.


https://www.texasbulliondepository.gov/

FarmerD
User avatar
I Shrugged
Executive Member
Executive Member
Posts: 1488
Joined: Tue Dec 18, 2012 6:35 pm

Re: Texas Bullion Depository Open for Business

Post by I Shrugged » Fri Jan 04, 2019 8:18 pm

I am in the market to do something. This place is high on my list.
User avatar
dualstow
Executive Member
Executive Member
Posts: 11787
Joined: Wed Oct 27, 2010 10:18 am
Contact:

Re: Texas Bullion Depository Open for Business

Post by dualstow » Fri Jan 04, 2019 8:23 pm

FarmerD wrote:
Fri Jan 04, 2019 7:39 pm

The Texas Bullion Depository was ... created to provide a safe and secure location for Texans, U.S. Citizens, and others ...


I take it that is not necessarily redundant in the minds of all Texans. O0
RIP Dusty Hill and be well, Bob Odenkirk
Libertarian666
Executive Member
Executive Member
Posts: 5994
Joined: Wed Dec 31, 1969 6:00 pm

Re: Texas Bullion Depository Open for Business

Post by Libertarian666 » Sat Jan 05, 2019 1:42 pm

dualstow wrote:
Fri Jan 04, 2019 8:23 pm
FarmerD wrote:
Fri Jan 04, 2019 7:39 pm

The Texas Bullion Depository was ... created to provide a safe and secure location for Texans, U.S. Citizens, and others ...
I take it that is not necessarily redundant in the minds of all Texans. O0
Correct!

I'm going to consider this very carefully, but from a first casual look it seems like it could be great!
Libertarian666
Executive Member
Executive Member
Posts: 5994
Joined: Wed Dec 31, 1969 6:00 pm

Re: Texas Bullion Depository Open for Business

Post by Libertarian666 » Thu Jan 10, 2019 5:46 pm

I have opened an account with them and will be transferring gold from Global Gold.
The yearly cost is about the same but I will get segregated storage instead of collective, and the cost to buy or sell should be considerably less.
It's also a lot closer to home and you can even visit it!
User avatar
ochotona
Executive Member
Executive Member
Posts: 3214
Joined: Fri Jan 30, 2015 5:54 am

Re: Texas Bullion Depository Open for Business

Post by ochotona » Thu Jan 10, 2019 8:11 pm

I don't know one half of 1% seems expensive to me. It's cheaper to get a safe deposit box and insure it. Plus the safe deposit box can be close to your home or far away whatever you want. Leander is a long drive for me.
boglerdude
Executive Member
Executive Member
Posts: 765
Joined: Wed Aug 10, 2016 1:40 am
Contact:

Re: Texas Bullion Depository Open for Business

Post by boglerdude » Fri Jan 11, 2019 12:35 am

If anyone happens to contact them, ask if there's an ETA:

"The depository will offer a pooled method for storing gold or other precious metals in the future."
Libertarian666
Executive Member
Executive Member
Posts: 5994
Joined: Wed Dec 31, 1969 6:00 pm

Re: Texas Bullion Depository Open for Business

Post by Libertarian666 » Fri Jan 11, 2019 9:02 am

ochotona wrote:
Thu Jan 10, 2019 8:11 pm
I don't know one half of 1% seems expensive to me. It's cheaper to get a safe deposit box and insure it. Plus the safe deposit box can be close to your home or far away whatever you want. Leander is a long drive for me.
It looks like you can get safe-deposit coverage for 20 basis points: https://safedepositboxinsurance.com/sol ... us-metals/
I've heard stories about having trouble collecting on such insurance if you ever need it, but haven't investigated them.
But otherwise you have a good point about the expense.

On the other hand, there isn't a contract or commitment at the depository. So it wouldn't be hard to withdraw some or all of the metals if necessary.
Libertarian666
Executive Member
Executive Member
Posts: 5994
Joined: Wed Dec 31, 1969 6:00 pm

Re: Texas Bullion Depository Open for Business

Post by Libertarian666 » Fri Jan 11, 2019 9:05 am

boglerdude wrote:
Fri Jan 11, 2019 12:35 am
If anyone happens to contact them, ask if there's an ETA:

"The depository will offer a pooled method for storing gold or other precious metals in the future."
There is no precise ETA but they suggested it would be sometime in the relatively near future. The specific purpose for the pooled method is to allow them to issue debit cards that you could use to spend your gold. That might reduce the amount of USD one has to keep on hand for everyday expenses.

They are currently working out the details, including accounting so you can do the cap gains tax calculations easily.
Last edited by Libertarian666 on Wed Jan 16, 2019 11:07 am, edited 1 time in total.
User avatar
Ad Orientem
Executive Member
Executive Member
Posts: 3483
Joined: Sun Aug 14, 2011 2:47 pm
Location: Florida USA
Contact:

Re: Texas Bullion Depository Open for Business

Post by Ad Orientem » Wed Jan 16, 2019 10:27 am

ochotona wrote:
Thu Jan 10, 2019 8:11 pm
I don't know one half of 1% seems expensive to me. It's cheaper to get a safe deposit box and insure it. Plus the safe deposit box can be close to your home or far away whatever you want. Leander is a long drive for me.
+1

I'd also add that this is inside the US and it is a quasi government entity. Not saying that the risk level is really high. I use a safe deposit box which has risks as well. But precious metals are supposed to be, at least in part, a hedge against governmental corruption or stupidity. Just sayin...
Libertarian666
Executive Member
Executive Member
Posts: 5994
Joined: Wed Dec 31, 1969 6:00 pm

Re: Texas Bullion Depository Open for Business

Post by Libertarian666 » Wed Jan 16, 2019 11:09 am

Ad Orientem wrote:
Wed Jan 16, 2019 10:27 am
ochotona wrote:
Thu Jan 10, 2019 8:11 pm
I don't know one half of 1% seems expensive to me. It's cheaper to get a safe deposit box and insure it. Plus the safe deposit box can be close to your home or far away whatever you want. Leander is a long drive for me.
+1

I'd also add that this is inside the US and it is a quasi government entity. Not saying that the risk level is really high. I use a safe deposit box which has risks as well. But precious metals are supposed to be, at least in part, a hedge against governmental corruption or stupidity. Just sayin...
Absolutely. But these days it's pretty much impossible to keep anything private without subjecting yourself to harsh penalties if you get caught. The former benefit of privacy in dealing with Swiss institutions that Harry Browne relied on no longer exists.
User avatar
Ad Orientem
Executive Member
Executive Member
Posts: 3483
Joined: Sun Aug 14, 2011 2:47 pm
Location: Florida USA
Contact:

Re: Texas Bullion Depository Open for Business

Post by Ad Orientem » Wed Jan 16, 2019 3:32 pm

Libertarian666 wrote:
Wed Jan 16, 2019 11:09 am
Ad Orientem wrote:
Wed Jan 16, 2019 10:27 am
ochotona wrote:
Thu Jan 10, 2019 8:11 pm
I don't know one half of 1% seems expensive to me. It's cheaper to get a safe deposit box and insure it. Plus the safe deposit box can be close to your home or far away whatever you want. Leander is a long drive for me.
+1

I'd also add that this is inside the US and it is a quasi government entity. Not saying that the risk level is really high. I use a safe deposit box which has risks as well. But precious metals are supposed to be, at least in part, a hedge against governmental corruption or stupidity. Just sayin...
Absolutely. But these days it's pretty much impossible to keep anything private without subjecting yourself to harsh penalties if you get caught. The former benefit of privacy in dealing with Swiss institutions that Harry Browne relied on no longer exists.
I wasn't thinking so much of privacy as just trying to keep as much distance between the government's fingers and your PMs as reasonably possible. Letting the government store your PMs might not be a good idea in an SHTF scenario.
User avatar
Xan
Administrator
Administrator
Posts: 3539
Joined: Tue Mar 13, 2012 1:51 pm

Re: Texas Bullion Depository Open for Business

Post by Xan » Wed Jan 16, 2019 4:29 pm

Ad Orientem wrote:
Wed Jan 16, 2019 3:32 pm
Libertarian666 wrote:
Wed Jan 16, 2019 11:09 am
Ad Orientem wrote:
Wed Jan 16, 2019 10:27 am


+1

I'd also add that this is inside the US and it is a quasi government entity. Not saying that the risk level is really high. I use a safe deposit box which has risks as well. But precious metals are supposed to be, at least in part, a hedge against governmental corruption or stupidity. Just sayin...
Absolutely. But these days it's pretty much impossible to keep anything private without subjecting yourself to harsh penalties if you get caught. The former benefit of privacy in dealing with Swiss institutions that Harry Browne relied on no longer exists.
I wasn't thinking so much of privacy as just trying to keep as much distance between the government's fingers and your PMs as reasonably possible. Letting the government store your PMs might not be a good idea in an SHTF scenario.
Definitely a valid point, but the government of Texas is different from the feds. For whatever that might be worth in various SHTF scenarios.
User avatar
Stillwaters
Junior Member
Junior Member
Posts: 12
Joined: Fri Jan 11, 2019 9:51 pm

Re: Texas Bullion Depository Open for Business

Post by Stillwaters » Wed Jan 16, 2019 9:13 pm

I use the Perth Mint for “core” gold storage and international diversification (re-balance with SGOL or IAU). Current holdings are in an “Unallocated” account which incurs “zero" storage cost. If you invest $250,000 or more as an International Investor there are also NO TRANSACTION FEES. Unallocated gold is NOT lent out like other institutions. Also, all Gold is backed by the Gov’t of Western Australia (somewhat similar to having State of Texas backing). In a SHTF scenerio you could transfer from Unallocated to Allocated with a small one time conversion fee (Perth would create 1/5/10/20 or 50 oz Gold Bars or for a higher fee coins). Potential downsides: 1) 1% storage fee for allocated 2) Ten days for Gold delivery (Unallocated) vs. two days (Allocated).

It is nice to see we have a Texas Bullion option though and as a Texas resident I couldn’t be happier.

This link will explain why unallocated Perth Gold is a safer:
https://www.perthmint.com/storage/help/ ... tions.html

Transaction Fees / Storage Fees:
https://www.perthmint.com/storage/pricing.html
User avatar
sophie
Executive Member
Executive Member
Posts: 4544
Joined: Mon Apr 23, 2012 7:15 pm

Re: Texas Bullion Depository Open for Business

Post by sophie » Thu Jan 17, 2019 7:35 am

I'm still using Perth Mint as well. Not having to worry about an ETF's gold being lent out, and eliminating a layer of managerial risk, is a good thing. I like the free storage, too :-). On the other hand, you have an account with sensitive info in the hands of Perth Mint AND whoever they outsourced it to. That's how their recent data breach happened - about which they've done nothing visible. I would assume the Texas depository will have the same issues, eventually.
User avatar
ochotona
Executive Member
Executive Member
Posts: 3214
Joined: Fri Jan 30, 2015 5:54 am

Re: Texas Bullion Depository Open for Business

Post by ochotona » Tue Apr 30, 2019 3:12 pm

I talked to a detective in Brenham, TX, near where my gold is stored. He said he has never heard of a theft from a bank safe deposit box in the Brenham area. Never is a long time. Now... they do have bank robberies, like every place.
User avatar
Ad Orientem
Executive Member
Executive Member
Posts: 3483
Joined: Sun Aug 14, 2011 2:47 pm
Location: Florida USA
Contact:

Re: Texas Bullion Depository Open for Business

Post by Ad Orientem » Tue Apr 30, 2019 4:45 pm

Safe deposit box thefts are extremely rare. Breaking into a safe deposit vault is hard and very risky. And unless you are prepared to open all the boxes, which is time consuming, and therefore even more risky, you need to know in advance which ones to hit.
User avatar
sophie
Executive Member
Executive Member
Posts: 4544
Joined: Mon Apr 23, 2012 7:15 pm

Re: Texas Bullion Depository Open for Business

Post by sophie » Wed May 01, 2019 9:06 am

I thought the main risk with safe deposit boxes had to do with the bank, not random robbers. For example, deciding that your box is abandoned because you haven't visited it for a while. Or, a catastrophic event that destroys the building, like a fire or flood.

It may be worth checking to see if Texas Bullion Repository outsources its website and cybersecurity, like Perth Mint does. I bet the answer is yes, in which case your data are actually in the hands of that company, not the one you think.
User avatar
ochotona
Executive Member
Executive Member
Posts: 3214
Joined: Fri Jan 30, 2015 5:54 am

Re: Texas Bullion Depository Open for Business

Post by ochotona » Wed May 01, 2019 11:14 am

sophie wrote:
Wed May 01, 2019 9:06 am
I thought the main risk with safe deposit boxes had to do with the bank, not random robbers. For example, deciding that your box is abandoned because you haven't visited it for a while. Or, a catastrophic event that destroys the building, like a fire or flood.

It may be worth checking to see if Texas Bullion Repository outsources its website and cybersecurity, like Perth Mint does. I bet the answer is yes, in which case your data are actually in the hands of that company, not the one you think.
Yeah... my bank is on a hill, but it's an old building, historic actually. So fire is a risk.
User avatar
stpeter
Full Member
Full Member
Posts: 50
Joined: Tue Nov 26, 2013 8:26 pm

Re: Texas Bullion Depository Open for Business

Post by stpeter » Tue Sep 03, 2019 10:34 am

sophie wrote:
Wed May 01, 2019 9:06 am
It may be worth checking to see if Texas Bullion Repository outsources its website and cybersecurity, like Perth Mint does. I bet the answer is yes, in which case your data are actually in the hands of that company, not the one you think.
I contacted the Texas Bullion Depository and they said "All of our website development and cyber security is performed in house with state government oversight."
Post Reply