A bill that would transport much of Texas’ gold holdings from New York to Texas has been proposed in the state’s legislature.
According to the Texas Tribune, Southlake Republican Representative Giovanni Capriglione is currently revising a new Texas bill that would move approximately $1 billion in gold bars from the Federal Reserve in New York to the Texas Bullion Depository. The gold, which is owned by the University of Texas Investment Management Company (UTIMCO), is now securely underground in Manhattan.
Why move the gold? Supporters of the Texas bill say that the state’s physical riches should be within state lines instead of hundreds of miles away. They also say that moving the gold and storing it in a new bank wouldn’t be very costly because many costs would be taken up by the private sector.
Opponents of the bill, who include Democrat Lon Burnam of Fort Worth, argue that the state legislature has more important issues to deal with this session than moving the gold and that transporting the gold to a new place could be costly and even dangerous. Others who oppose the law don’t see good reason to move the metal from an already secure place and wonder whether moving the gold would further drive a wedge between Texas and the rest of the country.
Governor Rick Perry has said he supported the gold-moving bill, while Texas congressman Ron Paul has stated in the past that he believes Texas should better protect its gold.
Capriglione has stressed that the bill would not change how Texas invests in gold. He has also stated that the state could sell the gold housed in the Federal Reserve and repurchase it within state lines in order to make the transition economical and safe.