Thursday, June 18, 2015

Texas Building its own gold depository because it doesn't trust Yankee Federal Reserve...except for one small detail

Ok this is a short one, Texas has decided to "repatriate" its gold from the Federal Reserve.  Anyway that's the headline, now the truth:

Texas has no gold at the Federal Reseve
Texas University Pension fund (about 4 years ago) acquired some gold (nearly $3 billion) about half are in real gold the balance are in futures average purchase price about $1,100/oz
Texas University's gold is held by HSBC (in New York) and not with the Federal Reserve.

Now this is the funny bit, Texas University COULD have kept its gold with the Feds, at an annual cost of about $20,000.  Instead it trusted HSBC that charged it....wait for it "1 million dollars" per annum.

Now the funny bit is of course that Texas is making, a "you stinking feds" statement when in fact the Federal Reserve's Texas gold balance is ZERO.  It gets even better, they trusted a "Chinese Bank" more than they trusted the U.S. Federal Reserve.  They paid 50x what it would have cost if they had deposited the gold with the federal reserves -- who said that the private sector was more efficient?  Plus, and this is the best bit, they've now got to build a relatively serious building to house Texas's "gold", which doesn't exist.  As one would say priceless!

Just funny, that all


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