Proposed Texas legislation: gold bullion repository

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A group of House Republicans filed a bill in mid-April that would have the state use $2 billion from its savings reserve to buy gold bullion. The bill sat idle in the House Appropriations Committee until Thursday, when it was sent to the Committee on State Government. It’s set for a committee hearing Wednesday.

Rep. Mark Brody, the bill’s lead sponsor, said in an email last week that the value of the gold proposed for purchase will be lowered to $400 million to $500 million in a revised bill. House bill 721 proposes to store North Carolina’s gold in a bullion depository the state of Texas created in 2015. Deposits were stored in Austin until a new facility opened outside the city in 2020.

Dissatisfaction with the Federal Reserve is at the heart of the North Carolina bill.

“The reason – the federal government is consistently and increasingly devaluing our currency,” Brody said in his email. “To begin to set aside an amount of physical gold over a number of years will put NC in a better financial position should the devaluing process turn into hyperinflation.”

Under the bill, North Carolina’s gold would be stored in Texas while the state Treasurer studies the cost and benefits of establishing a North Carolina-administered bullion depository. The gold would be moved from Texas if North Carolina establishes its own vault or if it needs to be sold to help North Carolina pay its bills.
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dontdeBasemebro said:

I'm certainly in favor of this, but the really interesting part will be the reaction of the fed when they see gold leaving their vault.

Assuming there is any gold there to take back...

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CiscoKid said:

... I think it was around 2013 when Germany asked for it back and it wasn't until 2017 that they finally received it.

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pmbug said:

Tennessee might end up with their own depository: ...

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pmbug said:

North Carolina considering converting some savings funds to gold and storing it in the Texas depository: ...

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