Thursday, June 15, 2017

Texas taps private vendor to manage first state-run gold depository in U.S.

I didn't predict this, but I highly suggested this back in 2011 <click here> and 2013 <click here>.  That's probably understating it:  I pounded the table.  Texas is finally creating their own gold depository in Austin.

Here is an excerpt from my January 8, 2013 blog entry:

While I agree with him in principle, I don't believe UTIMCO went far enough.  Their gold bars do exist, but they are stored in HSBC's vaults, the custodian for the GLD ETF.  There have been some grumblings of HSBC manipulating GLD shares and physical inventory, as well as accusations of JPMorgan manipulating the SLV ETF for silver.  It's the ol' fox guarding the hen house syndrome.  If I were UTIMCO, I would go even further, and send a team of Texas Rangers to HSBC's vaults in New York, repatriate and transport those gold bars back to Austin, Texas.  After all, if/when the $hit does hit the fan, possession is 100% ownership--irrespective of legal paper claims.

No comments:

Post a Comment