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Texas seeks to relocate $1 billion in gold bars to state depository

gold barGov. Rick Perry (R-Texas) is currently working with Texas lawmakers to bring $1 billion in gold bars owned by the University of Texas Investment Management Company back to the state in an effort to promote economic growth.

Republican Texas state Rep. Giovanni Capriglione has proposed legislation that would establish the Texas Bullion Depository, which would be used to relocate the gold currently housed by the Federal Reserve in New York. Perry and Capriglione said holding the gold within state lines would enhance the state’s reputation as financially sound.

“If we own it, I will suggest to you that that’s not someone else’s determination whether we can take possession of it back or not,” Perry said on the radio show of conservative commentator Glenn Beck.

Arthur McGuire, the vice president of gold retail outlet Gold Coin, said that Texas is “embodying the spirit of owning physical gold” in trying to bring the gold back to the state.

“They don’t want the certificates, they want the real thing,” McGuire said. “And that’s not unreasonable. The point of owning physical gold is to have it close in case it is needed. Household investors can take a lesson from the state’s actions. Owning gold on paper, no matter how reputable the institution that guarantees it, is no substitute for being in possession of the physical element. You don’t know how many other investors have a certificate to the same gold as yours. The safest way to invest in gold is to buy physical gold bullion bars and coins.”

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