State-run depository provide safe, secure storage facilities for physical gold and silver bullion purchases from dealers. Customers have the option of shipping it directly to one or more storage vaults at the depository for storage, either allocated or segregated storage vaults.
According to Ferris’ statement, the depository is supported by Texas and managed by Austin-based LSTA, with auditing conducted by an outside third-party firm and reviews conducted regularly by the Texas Comptroller.
Why Store Your Gold in Texas?
At the 84th legislative session, Texas lawmakers established the Texas Bullion Depository with the stated purpose of giving residents of Texas an alternative method for storing precious metals than at home or through banks.
Legislation also called for the creation of a vault that would be audited by the Texas comptroller, offering greater levels of compliance and oversight not available through private depositories, according to Matt Ferris, Chairman of Lone Star Tangible Assets.
Ferris reports seeing an upswing in interest among individuals looking to use their IRA accounts to purchase gold bullion stored at a Texas depository. He notes the cost for storage and insurance is less than 1 percent per piece stored annually – representing tremendous value considering Fort Knox charges over $1.6 billion per year in fees alone.
Insurance Coverage
The facility is completely subterranean, featuring three layers of concentric protection with bulletproof doors at all entry points and 24/7 monitoring by off-site security specialists and 24/7 armed guards manned with weapons. Furthermore, 100% coverage through an all-risk policy underwritten by Lloyd’s of London (a leading global provider of specialized insurance policies) guarantees 100% insurance for any potential risks to its operation.
Lone Star Tangible Assets was chosen by Texas state comptroller’s office to operate and own and run this depository under Texas oversight, serving financial institutions, cities, school districts, individuals and countries while eliminating the need for out-of-state storage for precious metals.
Texas residents will soon be able to purchase gold and silver bullion online from dealers such as Birch Gold, then depositing it at the new state depository. The University of Texas Management Company currently pays nearly one million annually in storage fees to keep its $660 million of gold stored in vaults in New York City; switching to an efficient state-run depository could save millions.
Personal Safety
The Texas Bullion Depository is situated on a 10-acre campus just north of Austin. Encased in concrete with three layers of protective concrete encasing it, and featuring an up-to-date UL Class 3 vault, this facility is continuously monitored by off-site security specialists as well as on-site armed security officers for their protection.
Legislators created the Texas Bullion Depository in 2015 in an attempt to keep gold and silver assets out of New York City, where many pay fees to store their precious metals. TxBD as an agency of Texas is held to higher standards than private depository vaults that operate with private management.
Texas residents can deposit their bullion in the depository for a small fee and maintain full control over their assets, which can be withdrawn at any time for shipment back or liquidated for cash at market value. Furthermore, depository deposits are exempt from sales tax and therefore offer an ideal way to store precious metals.
State Rights
The Texas Bullion Depository is owned and administered by the State of Texas, making it the only such vaulting facility owned by any state in America. Established by its 84th legislature to offer Texas residents an alternative to New York-based depositories, most of the fees charged for storage services go back into operating the Leander facility and an Austin satellite location.
The Texas Bullion Depository stands out from other private depositories by holding physical precious metal assets – specifically 5,600 gold bars worth around $650 million – unlike others which only hold futures contracts or investment positions. Some see this as a step toward returning to a gold standard system, evoking century-old fears about government money unchained from shiny bullion.
It is a clear indicator of Texas state government’s serious commitment to financial independence and decentralization, making this depository all the more intriguing in coming years.
