Texas scrambles to figure out how to ship $650 million in gold out of New York

Texas scrambles to figure out how to ship $650 million in gold out of New York

A new law would move thousands of gold bars out of a bank in New York and within Texas borders -- but officials have no idea how they're going to do it.

The state of Texas is pushing hard to get gold holdings back within its own borders, but its creating some logistical headaches.

Texas, in keeping with its reputation for having an independent spirit, is the only state that owns a stockpile of gold — actual physical gold bars worth $650 million. However, those holdings are stored in a New York bank, and with conservative fears about the value of paper currency, the state is pushing to get those gold holdings out of the banks and within Texas borders, according to an Associated Press report.

The legislature decided this summer that that the gold cache needs to be shipped to Texas. But it’s not necessarily that easy, as the law doesn’t indicate where the depository of gold would be, or how it should be secured. The Texas comptroller’s office is trying to figure out the answer to that question, as the Texas Bullion Depository currently exists only in name.

In addition, the law would allow average citizens to check in their own gold or silver bullion, creating further logistical problems.

One possible solution is to have private companies bid to create a depository and then charge storage and service fees.

Of course, even moving that amount of gold will be an expensive prospect, and some are questioning why Texas is going through all this expense and trouble unless it was expect to withdraw from the union.

However, proponents argue that it’s just better policy to have the gold close at hand.

Physical gold has become popular particularly in libertarian circles over distrust of the national government and old concerns that paper currency should be backed by physical gold.

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