What States Have a Gold Depository?
Gold and silver investors prefer having easy access to their investments; therefore, many opt to store them at a depository.
An effective solution is a state bullion depository. Governor Greg Abbott signed into law the Texas Bullion Depository in 2015, receiving its inaugural deposits in summer 2018 without incurring taxation for precious metals stored there.
Texas
The Texas depository will offer Texas an avenue towards financial independence. Individuals and companies alike will be able to deposit gold and silver that can then be used just like cash for purchases made elsewhere in the state or by bullion-funded debit cards that would enable instant purchases anywhere credit or debit cards are accepted.
Currently operating from an Austin facility of 23,000-square-feet, and expanding to Leander in 2015, the Comptroller’s Office partnered with Lone Star Tangible Assets – a private storage provider known for their expertise in system development, physical security, computer security, vault operations, shipping/receiving operations, metal assaying as well as customer service – in building and operating this depository.
Though not affiliated with COMEX, LSTA says it plans to work closely with COMEX in the future in order to provide access for large institutions. Furthermore, Austin area locations are being considered for a purpose-built facility that will house larger amounts of precious metals.
New York
The Federal Reserve Bank of New York’s underground vault in Manhattan houses gold bullion on behalf of central banks and official international organizations, as well as one of four known copies (exemplifications) of Magna Carta as well as key documents from Western history. Furthermore, this facility welcomes school and student groups for educational visits as part of its economic literacy mission.
This facility houses the US Mint’s bullion reserves, accounting for roughly 80% of total gold reserves nationwide. Although fortified and with an ominous name, this vault has never been broken into or seized despite all attempts by burglars and thieves to gain entry.
Legislation proposed in Florida and Oklahoma for the 2024 legislative session would establish state-based precious metals depository depositories, providing an alternative to government-backed fiat currency issued by the Federal Reserve. Malca-Amit’s New York vault stands as an exemplar for safekeeping precious metals physically.
North Carolina
North Carolina lawmakers have been working on legislation that would permit their state to hold reserves of gold and silver, following in the footsteps of Texas, which established a bullion depository and exempted precious metals from taxation.
Bullion depository facilities provide high-level, round-the-clock security that surpasses home safes or bank vaults.
Gold mining was an important industry in North Carolina from the 1800s through 1900s. Cabarrus County’s Reed Gold Mine produced more than $1 million worth of gold between 1804 and 1846; people extracted it from stream bed deposits, veins and mineralized zones found within schists and slates using hydraulic mining; later taking their precious metal to either private mints or the United States Mint for production into standard coinage.
California
Those with precious metals should consider placing them in a bullion depository for storage, which offers state-of-the-art security measures and usually comes equipped with insurance to give peace of mind to investors. Furthermore, such facilities also handle transportation and management of your bullion for more convenient investing experiences.
There are many private bullion depositories in the United States, so it is wise to compare their features and services before selecting one. A private depository may have different security measures and storage solutions than government facilities.
California does not currently possess a bullion depository, yet legislation to achieve this objective has gained momentum. A bullion depository would allow California to recognize gold and silver as money, which would undermine the Federal Reserve’s monopoly over currency production, as well as lead to reduced capital gains taxation on precious metals. Click here for more information about the advantages of having state-backed bullion depository.
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