Forget Fort Knox or the Federal Reserve. Texas has decided to start keeping its gold holdings within in its own borders. But what makes sense politically in such a sovereignty-loving place is creating a logistical conundrum.
Texas is the only state that owns an actual stockpile of gold, according to public sector and financial industry experts – not just gold futures or investment positions, but approximately 5,600 gold bars worth around $650 million. The holdings, stored at a New York bank, for some harken back to century-old fears about the security of currency not backed by shiny bullion.
The Legislature’s decision this summer to bring its gold cache home was hailed by many conservatives, and even some on the far left, who are suspicious of national government.
“There will always be the exact same amount of gold in there as the amount that was put in,” no matter what happens to the financial system, said Republican state Rep. Rep. Giovanni Capriglione, a former tea party organizer from the Dallas suburbs who authored the gold bill.