Many individuals invest in precious metals with the hope that these investments will hold or even increase in value during uncertain times, often through an Individual Retirement Account (IRA) or other retirement savings vehicle.
But what if there were an easier way to store gold closer to home? That was exactly the vision behind state lawmakers forming the Texas Bullion Depository.
UT/A&M Investment Management Company
UTIMCO manages investments for both the University of Texas and Texas A&M systems, with its mission being to generate superior long-term returns that support world-class teaching, research, and patient care at these institutions.
UTIMCO is one of the country’s largest endowments and has been recognized by Institutional Investor for its impressive performance. However, critics have pointed out that UTIMCO invests in weapons manufacturers which may lead to human rights violations in conflict-affected regions.
UTIMCO has come under scrutiny for investing in companies involved in environmental degradation. For instance, they hold shares in mining and oil & gas firms which engage in environmentally harmful practices such as mining.
Established in 1996 and headquartered in Austin, Texas, this company currently manages assets worth more than $19 billion and investments are overseen by an eleven-member Board of Directors that includes at least three representatives of UT System Board of Regents and two appointed by Texas A&M System Board of Regents.
UT System
At first glance, Texas may seem an odd state without its own storage facility for precious metals like gold bullion. That changed in 2015 with the passing of a bill creating its inaugural state-run depository of precious metals.
Depository will accept precious metal deposits from citizens, institutions, cities, schools and businesses alike; including international depositors. Lone Star Tangible Assets will operate it for five years with two one-year extension options.
Rep. Giovanni Capriglione first proposed creating a gold depository during the 2013 legislative session, but his bill failed to advance due to its cost and requirement of hiring 70 new state employees. Reworked versions were created later that would ensure taxpayers wouldn’t foot all of its costs while also charging fees for access.
LSTA
At a time of political unrest and uncertain economies, investors are turning increasingly toward precious metals as an investment vehicle. Texas, an important trading hub, has taken steps to safeguard this bullion through partnership with private contractors to operate storage facilities within its borders.
Governor Greg Abbott signed legislation creating the Texas Bullion Depository in 2015 and now it has opened for business. With Lone Star Tangible Assets as its partner, Austin now hosts two vaults for depositing gold and silver; Comptroller Glenn Hegar was the inaugural depositor at Leander.
The Loan Traders Association (LSTA) is an industry group comprised of debt trader members. It exists to enhance the smooth operation of North American syndicated loan market. Publications of standardised precedent documents and offering training seminars. Public relations activities. Marketing initiatives.
Texas Bullion Depository
The Texas Bullion Depository is the first state-administered precious metals storage facility in the US. The company contracted to manage it has years of experience, so customers can rest assured their precious metals are secure and will always be there when needed – fully segregated deposits can also be sealed individually so customers have peace of mind that their precious metals won’t get stolen, destroyed by fire, theft or natural disaster.
UT/A&M Investment Management Company, which oversees the assets of both university and A&M systems, currently stores its gold holdings in New York. Each year it pays over $1 Million in storage fees that could otherwise go toward education – money which should remain in Texas rather than being siphoned off by storage fees outside their own state. Glenn believes Texans shouldn’t pay for storage of their own property stored elsewhere.
The Comptroller’s office partnered with LSTA, an institution with a Class 3 vault in Leander, to operate this depository. Depositors can open an online account before shipping or personally delivering precious metals directly to the facility for storage – with annual storage charges set at 0.500% of stored value.
