Do States Have a Gold Depository?
As economic instability mounts, people invest in precious metals to safeguard their value in times of instability. A bullion depository provides superior protection of these assets than either home safes or bank vaults can.
Texas became the first state-approved gold bullion depository in 2018. This facility will allow private gold and precious metal depositors to take advantage of a tax exemption for deposits at this facility.
Texas
Texas leads in terms of precious metals. Texas boasts the nation’s first and only bullion depository, which began operating this past summer.
Gov. Greg Abbott signed into law in 2015 a bill creating Texas’ depository facility, and in the summer of 2018 its inaugural deposits arrived at its doors. That same year, property tax exemptions were granted for gold and silver stored at depository facilities.
The comptroller partnered with private storage company Lone Star Tangible Assets to operate this depository. Lone Star will utilize existing facilities in Austin before opening a larger one in Leander next year; anyone from cities, counties, businesses, individuals and foreign entities are all welcome to store precious metals there.
New York
Gold bullion from around the country lies beneath Manhattan, in a vault at the Federal Reserve Bank of New York, heavily protected and accessible only through one entry point – a massive steel cylinder. The nearest subway tunnel in NYC lies 100 feet (30 meters).
The vault houses 122 separate compartments for individual account holders to store gold securely and safely, all numbered to prevent it from mixing between accounts and verify that its gold remains protected and secure.
State bullion depositories provide a path toward financial independence for countries worldwide, which explains why so many nations hold gold reserves. A gold depository in Texas would bring similar advantages – as well as exempt precious metals stored there from taxation!
California
California residents may store precious metals at home or in bank safety deposit boxes; however, these methods don’t offer the same high level of round-the-clock security that a bullion depository provides and usually incur annual storage fees of several hundred dollars or more.
Many homeowners use secret hiding places like Easter egg nests to bury gold and silver assets; this practice can put them at risk and increase theft rates.
Texas offers its citizens an innovative solution for safely storing precious metals: Transcontinental Depository Services is managing Texas’ first state-authorized bullion depository facility which houses and protects gold, silver, platinum and rhodium owned by private asset holders.
Illinois
Illinois stands apart from many states by charging a sales tax of 6.25% on precious metals; additionally, local governments may impose their own sales taxes. Thankfully, many reputable Illinois precious metals dealers specialize in helping their customers avoid these hidden fees.
Many individuals try to hide gold and silver at home, but such tactics can often prove risky. Individuals risk losing their precious metals; or worse still, thieves might gain entry and steal them away.
Private depository storage provides optimal levels of security and 24-hour surveillance, along with comprehensive insurance coverage. In addition, these depositories also offer convenient online and telephone support services.
Florida
Florida would benefit greatly from having a bullion depository, which would allow residents to use gold and silver as currency in everyday transactions while levelling the playing field with Federal Reserve notes – making it easier for residents to protect themselves against inflation while decreasing risks such as debt defaults or confiscations.
State legislatures should remove sales taxes on precious metal bullion, which creates barriers to using sound money and encourage hoarding. Furthermore, as proposed by the Sound Money Defense League, capital gains taxes on gold and silver should also be eliminated.
Pension funds should dedicate a portion of their assets to investing in physical gold and silver as an effective hedge against inflation. Furthermore, they should consider keeping assets stored domestically rather than overseas to avoid political unrest or natural disasters that might threaten these valuable investments.
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