VICTORIA ADVOCATE - July 30, 2016
The law establishing the Texas Bullion Depository is not about need. It is about value, and the value to the state is realized through revenue, opportunity, and diversification.
First, the depository will cost taxpayers nothing. Zero. The fact that no fiscal note was attached to the bill was the primary reason the bill passed almost unanimously in the House (140-1) and Senate (29-2).
Furthermore, the depository will generate revenue for the state from operations. Since the facility will be funded privately, an additional $20-plus million will be invested into the Texas market, along with at least 50 new jobs.
To help illustrate value versus need, consider the fact Texas does not need a state lottery, but the lottery generated $1.2 billion for Texas in 2014, with proceeds channeled primarily to the Foundation School Fund for public education. The state lottery also employs 325 people.
Second, lawmakers recognize that the ever-growing precious metals market is now a $15 billion industry. Seizing opportunities for the state to attract new business and expand into new markets remains a constant endeavor, especially given the state's historic susceptibility to the boom/bust cycle of the oil and gas market. There is a reason Texas is the second fastest-growing state in the nation. Texas has been deliberate about recruiting new business.
Let us, once and for all, dispel the myth that the purpose of this bill is to simply build a place to store gold.
The bill establishes an institution with the mandate to facilitate a "check, draft or digital electronic instruction" and "to purchase or sell precious metals in the ordinary course of depository operations." The Texas Bullion Depository will be a financial institution, designed to offer flexibility with the security of the world's oldest store of wealth: gold.
As Texans, we are drawn to black gold, but let us not underappreciate the critical role of the real thing as a cornerstone of financial markets.
READ FULL ARTICLE on Victoria Advocate website here.