Texas mulling repatriation of gold held at New York Federal Reserve Bank

Texas Republican Governor Rick Perry is working with lawmakers in proposing legislation that would establish a Texas Bullion Depository. The Lone Star State owns approximately $1 billion worth of gold that is held underneath at the Federal Reserve Bank of New York.

The former presidential candidate has teamed up with Republican State Representative Giovanni Capriglione to create a state-like Fort Knox, which would allow its citizens and the state government to store their own gold in such a facility.

It has also been proposed the legislation would help the state save money on administrative tasks and security duties by contracting out to private companies. Many are suggesting that this could be the first step toward secession, but the wording does not include any language that makes references to it.

Former Texas Republican Congressman and three-time presidential candidate Ron Paul indicated support for what his home state is doing. Speaking in an interview Thursday, Dr. Paul explained that when you own gold it’s best to keep the gold close to home.

“If you think gold is a hedge, or a protection, you always want it as close to the individual and the entity as possible,” the three-time presidential candidate told the Texas Tribune on Thursday. “Texas is better served if it knows exactly where the gold is rather than depending on the security of the Federal Reserve.”

Texas isn’t the only state in the Union deliberating bullion and alternative currencies. Utah passed a bill in 2011 that would make gold and silver legal tender, while Arizona is presently debating legislation that would allow consumers and businesses to exchange gold and silver coins for goods and services. Several other states are debating imposing similar laws, including Minnesota, North Carolina, Idaho, South Carolina and Colorado, which are all concerned over the U.S. dollar.

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