Posted on 07/05/2015 8:11:28 PM PDT by xzins
Texas has a stockpile of gold. That gold is kept in New York City in an underground vault managed by HSBC. Texas has decided it wants all its gold back in Texas.
Earlier this year, Governor Greg Abbott signed a law that had sailed through the Texas Legislature. It sets up a depository facility in Texas that will house all of Texas’s gold inside Texas.
According to the Associated Press, Texas’s gold measures “about 20 square feet”. I’m thinking that should be cubic feet, but no matter. That’s not the best part.
In examining how Texas might get its actual, physical gold home from New York City, we find this gem, which is the funniest line in any news article this week:
It’s unclear whether repatriating it could be done with an electronic transfer or would require a fleet of planes or armored cars.
Yes, Scotty is going to beam it to Texas.
5601 bars of gold approx. What size bars? 12 pounders...?
Standard bar of gold used for this purpose is 12.4 kg’s or 400 troy oz’s. Price of Gold is 1168.00 currently.
So if Texas has 5601 bars of gold at 400 oz’s per....let’s see...5601X400=2,240,400 oz’s. It’s current worth is 2.617 billion in currently valued dollars.....
Now do you see why Texas might want their gold back? Should gold make another run at 2000 an oz their gold becomes all the more valuable!
Standard bars of gold for trading weigh in at 400 troy oz’s.....if it is costing Texas 108 dollars a bar to house the gold or 605 thousand a year...then they have 5601.85 bars....(assuming 99.5 per cent purity) Texas gold’s worth is over 2 billion dollars at current valuation per ounce. I could see why Texas would want their gold back...plus why should the state want to pay a NY firm 605 thousand of Texas’ money that could be put to use in Texas’ economy?
My question is, how many states would go with it? Oklahoma? New Mexico? Arkansas? Louisiana? Then what? Would Kansas and Colorado be far behind? What about the deep south states?
I thought I read about this a year ago where Germany wanted to reclaim its gold reserves. You are correct, once i read a few articles, it completely disappeared from the new.
The conundrum is that, even as the monetary authorities increase the money supply, the abundant supply of currency goes up in value relative to scarce goods. This is obviously not a sustainable trend and the pendulum will swing the other way at some point. Violently.
Holland has already repatriated their gold. The Ukraine’s gold is sitting in a vault somewhere in the US.
If half of the outstanding gold futures contracts demanded delivery the exchanges would fold. The COMEX is a paper market.
If you can’t hold it in your hand, you don’t own it because it is just a promise to pay.
-——But, why now, Texas?——
De Blazio
HSBC is a private bank and not the Fed NYC. HSBC is formerly Hong Kong Shanghai Banking Corporation, a British bank
the AP would have the 20 square feet of gold stored in the underground cement walled vaults
It was very humorous, and got more so once I realized you were now going to have to reply pedantically to a bunch of people who would skim the thread and think you said fiat.
Wha? Dude, gold is over $1,000 an OUNCE! How much do your bars weigh?
Oh I agree 100% though I fear in any actual financial collapse the government would quickly act to make gold transactions illegal or difficult - they aren't going to put up with any competition with their fiat currency.
>The Ukraine’s gold is sitting in a vault somewhere
>in the US.
Are you sure? Back during the beginning of their crisis Zerohedge had an article on a big armed convoy putting Ukraine’s gold on a plane to who knows where, and then months later we heard the gold was gone.
http://www.zerohedge.com/news/2014-11-18/ukraine-admits-its-gold-gone
http://americanfreepress.net/?p=21943
It sounds crazy to me, but then again, every day people get killed in the US over hundreds of dollars. I suppose if the means were there, somebody stealing a few tons of gold wouldn’t seem that strange.
“But, why now, Texas? “
Why give money to Yankees to house what is ours when the alternative is plainly before you to let Texas make that money.
Seems like a very logical way to run your business.
Do you keep cash over a neighbor’s house or do you keep it in your own house?
“My question is, how many states would go with it? Oklahoma? New Mexico? Arkansas? Louisiana? Then what? Would Kansas and Colorado be far behind? What about the deep south states? “
We would need an even bigger wall to keep people out that want to come from other states.
There is nothing keeping Texas in the US other than the hesitancy of Texas leaders.
They conveniently forget that Texas is a sovereign state which aligns with other states for defense and certain other, clearly-enumerated items. It is not a subject of the federal government but instead deploys that government for its own ends.
I cannot imagine the level of suppression that would be needed to enforce outlawing gold. Then again, I could not imagine a marxist moslem being elected president. Or re-elected.
If it’s 700 million dollars at 1200 an ounce, then we’ve got about 583,000 ounces or 36,000 pounds or 18 tons. An ounce cube is about .46 inch on a side. A pound is about 2.51 x .46 = 1.15” on a side for a pound. A ton would be, I think, about 12.6*1.15 = 14.5” per side.
Those just don’t compute for me. I can’t imagine how something little more than a one foot cube can weigh a ton.
Guess I’ve never dealt with gold all that much, or my numbers could be off.
Seems to me all 18 tons of it would be only a bit more than 2.5 feet on a side. I can’t fathom that. I’ve got a small wooden file cabinet about that size.
more than once... ;>)
A potential lifetime supply of toilet paper waiting for a third dimension?
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.