• 45 mins China Targets Hong Kong As Cold War With US Heats Up
  • 1 day No Shirt, No Shoes, No Mask, No Service
  • 2 days Is Bitcoin Actually Worth The Energy It Uses?
  • 2 days Insurance Companies Are Turning People Away As COVID-19 Crisis Escalates
  • 2 days Mining Exploration To Drop By Nearly 30% Despite Gold Boom
  • 2 days Europe Set To Unveil Its $500 Billion 'Green Deal'
  • 3 days Major Diamond Mine Slashes Production
  • 3 days Social Security Could Dry Up In Less Than A Decade
  • 4 days Europe On The Brink Of Economic Crisis
  • 4 days Barrick Gold Launches Exploration Program In Japan
  • 4 days COVID-19 Is A Hacker’s Paradise
  • 4 days Why Big Finance Is Bailing On Fossil Fuels
  • 5 days A New Trade War Will Send Gold Even Higher
  • 5 days Could COVID-19 Lead To Authoritarianism?
  • 6 days The $30 Trillion Mega-Trend To Watch As Markets Bounce Back
  • 6 days Gold Soars To 7-Year Highs
  • 7 days From Smartphones To Smart VR Acquisition, Apple Pushes the Envelope
  • 9 days Why Covid-19 Won’t Kill The Renewable Revolution
  • 10 days COVID-19 Could Spark A Global Food Crisis
  • 10 days How To Play The Next Big Rally In Gold
A New Trade War Will Send Gold Even Higher

A New Trade War Will Send Gold Even Higher

Gold hit $1,755 an ounce…

Gold Soars To 7-Year Highs

Gold Soars To 7-Year Highs

Gold climbed to a fresh…

Barrick Gold Launches Exploration Program In Japan

Barrick Gold Launches Exploration Program In Japan

Barrick and Japan Gold have kicked…

Mining.com

Mining.com

Mining.com

MINING.com is a web-based global mining publication focusing on news and commentary about mining and mineral exploration. The site is a one-stop-shop for mining industry…

Contact Author

  1. Home
  2. Commodities
  3. Precious Metals

Texas Builds Gold Depository To Rival Fort Knox

Vault

Texas lawmakers created a new storage option for miners when they signed off on building America’s first state-backed gold depository in 2015.

The Texas Bullion Depository, currently under construction and with the capacity to house physical gold valued in excess of $100 billion will be the most secure facility outside of Fort Knox, will have the full protection of the state of Texas, and is insured by Lloyds of London.

Texas will have a lot of gold to protect — Governor Greg Abbott said when the project was announced last year that it would allow Texas to “repatriate” its gold from New York. The University of Texas/Texas A&M Investment Management Company holds $1 billion worth of gold bullion at the HSBC Bank in New York City, the Texas Tribune reported.

“This goes back to the precious metals storage industry here in the US. Most of the depositories are in the east coast. I say why don’t we have more depositories in Texas? So, the legislature ultimately decided this was something that they wanted to do,” Texas Comptroller Glenn Hegar told MINING.com.

“This is an opportunity for people to store precious metals in a variety of different options, another tool for those in the mining industry. This would also provide that additional oversight, that additional security, accountability, whether it is a short term or long term storage,” Hegar said.

Hegar’s office selected Lone Star Tangible Assets, a firm that specializes in moving and storing precious metals, to construct and operate the depository with state oversight.

Sean Forbes, chairman at Lone Star, is also managing director at the Texas Bullion Depository. Forbes said the new depository will provide benefits for the mining industry in terms of security, cost and mobility — the cost of transportation via Brinks armored trucks is included in the service. Related: De Beers To Expand World’s Most Profitable Diamond Mine

“We have a sliding scale charge rate that is more than competitive with any other bank depository out there,” Forbes said.

According to Forbes, the depository is a solution for short- or long-term storage for mining companies that need a secure location to house treasury gold and other metals while holding for price changes or while waiting for the right buyer at the right price.

 “Miners will get the whole treasury bars of gold, if the price of gold is going up they could do better, often that’s a massive expense that they put into polymetallic rock than getting it into the treasury box so [it’s for] folks that don’t want an on-site risk or want a better than cost neutral alternative. You will get it insured, we will get it over here,” Forbes added.  Then [there is] is obviously the security layer around the triple audit, no one else can claim to have that.”

By Mining.com

More Top Reads From Safehaven.com

Back to homepage

Leave a comment
  • Dr. David J. Kaplan on June 03 2019 said:
    My calculations ( of course subject to correction ) are the following: The 1 billion dollars (U.S.) of the Univ of Texas / Texas A & M would be approx. 769,230 troy oz. of gold at the 1300 USD per troy value. This is approx. 23,925,384 grams gold. Gold density at 19.3 gm / cm3 then gives 107 cm per side of the cube of this pure gold which translates to a cube of approx 3.5 feet per side !!!! The 100 billion dollar capacity of this vault then should hold a cube theoretically at 16.4 feet per side !!!! Man that 's a lot of Gold. Kudos to the Great State and Republic of Texas for making this vault. They are protecting the people of Texas !!!!!!

Leave a comment