Texas has a bill in their house to take physical possession of the state of Texas owned gold from the NY Fed.
In 2011 The University of Texas purchased $1 Billion worth of gold with the help of an asset manager. At that time it was said “To want physical gold and not paper certificates was a form of anarchy.”
From above link about purchase of gold:
“If you own a paper contract where they can only deliver you 10 cents on the dollar or less, you should probably convert it to physical,” said Bass, who isn’t related to Fort Worth’s billionaire Bass family. He said holding cash wasn’t a better choice because the rate of inflation exceeds money-market rates by 2.5 percent to 3 percent, eroding the value of cash.
“The call to take delivery is more of a challenge to the system and it borders on the anarchistic,” said Ralph Preston, a principal at Heritage West Financial Inc., a San Diego company that specializes in futures trading. “It’s like the Republicans trying to overturn President Obama over the birth certificate issue. It’s poor sportsmanship.”
They left the gold at the NY Fed. Now they want the physical gold in Texas.
Filed under: Banks and Bankers |