A Texas “Yellow” Gold Rush

“We are not talking Fort Knox,” Capriglione said. “But when I first announced this, I got so many emails and phone calls from people literally all over the world who said they want to store their gold … in a Texas depository.   “People have this image of Texas as big and powerful … so for a lot of people, this is exactly where they would want to go with their gold.”   – Texas State Representative, Giovanni Capriglione (Ft. Worth Star Telegram)

Texas State Rep Giovanni Capriglione created legislation that would create a Texas Bullion Depository where Texas could store its gold.  Both the House and Senate in Texas have signed off on the Bill and it is headed to the Governor for consideration.

Comment from Texas reader, Dan:    All in Texas that think like this Representative…the gold may be gone by the time the vault is built…’rounded’ up by Jade Helm 15 and placed in a ‘secure vault’ for safe keeping…minus the Texas Teachers’ gold of course.

The plan calls for the creation of secure facility that would enable the State to move over $1 billion in gold bullion bars owned by the University of Texas Investment Management Company, which is the second largest U.S. academic endowment.   The fund currently “safekeeps” its gold at an HSBC vault in NYC.

This will be an interesting process to watch unfold.  My first instinct is to put on my “think like a criminal” hat and wonder if HSBC even has possession of the investment fund’s bullion – i.e. that the bullion might already be hypothecated.  To further this thought, I can envision a scenario in which HSBC – along with highly influential politicians in DC – exert undo influence on Governor Abbot to compel him to veto the legislation. This would alleviate the high degree of pressure that would be placed on HSBC to cough up the bars.

Notwithstanding this “think like a criminal” angle, the State of Texas now joins Venezuela, Germany, the Netherlands and Austria in the gold repatriation movement by governmental entities.  Germany, of course, already found out what happens when you “safekeep” your gold with bullion banks that are practiced in the art of leasing and hypothecation.

It would seem that the State of Texas is going to attempt to avoid the fate faced by Germany…

Whenever destroyers appear among men, they start by destroying money, for money is men’s protection and the base of a moral existence. Destroyers seize gold and leave to its owners a counterfeit pile of paper. This kills all objective standards and delivers men into the arbitrary power of an arbitrary setter of values.  – Franciso D’Anconia’s “money speech,” Atlas Shrugged



9 thoughts on “A Texas “Yellow” Gold Rush

  1. Put on my ‘think like a criminal’ hat lol! This is interesting but it will take a considerable amount of time to construct the vault if the legislation is passed. By the time they get it built it will probably be too late.

  2. All in Texas that think like this Representative…maybe gone by the time the ‘vault is built’…..’rounded’ up by Jade Helm 15 and placed in a ‘secure vault’ for safe keeping….minus their ‘gold’ of coarse

  3. There is a story that I think is attributable to Ted Butler, where he and his son drop into the Bank of Nova Scotia (of Scotia/Mocata fame) main branch in Toronto, so he may show his son their hoard of silver bullion stored there, that they have been paying storage fees on for years.

    They are told it is too short notice and they require a request submitted in writing. After much back and forth legal wrangling, the day arrives to be “shown” their silver hoard. Whereupon they are shown a few bars on a pallet in a dusty corner of the vault, with the explanation that the majority is held somewhere else and would require expensive secure transfer (at their cost) to the main vault.

    After much intense legal fighting, the Butler’s finally get to view their silver hoard and are recompensed (by court order) a portion of the storage fees they had paid over the years, for securely storing their silver that wasn’t even there!

    Good luck to Texas in requesting their gold bullion from HSBC. They’re going to need it!

    1. Forgot to add that they immediately withdrew their silver hoard to a secure location of their choosing and control. As Jim Sinclair says you had better GOTS!

    1. Paul,

      You are correct. Thank you. Yes, I do recall now that it was Harvey Organ and his son, who had recounted their silver story. Incredible! How soon people forget.

  4. Texas has a fantastic governor, He smells the rat of the disappearing gold. JFK airport keeps a accurate record of exported gold. It is unbelievable. There may not be any in the gold funds ETF and even Fort Knox.
    Thanks to the repeal of Glass Stegal, (Clinton 1999) banks are free to speculate with depositor’s money.
    They also can “naked short” which is selling a stock or commodity that you don’t own.
    All this was staged (2008 crash) to impoverish American retirement funds and the average american investor.
    Pay attention to your money, not to little boys wanting to use a girls bathroom. It is a diversion, or as the Con’s call it, ” a mixed direction”.

  5. In reality, the repeal of Glass Steagall, (the 1930’s depression law that fire walled depositor money from speculation) In fact transferred the ownership of the actual money from depositor to the bank

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