In an announcement on Wednesday, Texas Comptroller Glenn Hegar revealed that his office has selected Lone Star Tangible Assets as the private vendor that will build and operate the Texas Bullion Depository. It’s been two years since House Bill 483 passed, creating the first state-run gold depository in Texas. One of the bill’s conditions was that the depository be run by a private vendor to prevent costs to the state.
Over a dozen companies bid for the opportunity before the Austin-based company was ultimately chosen. The state signed a five-year contract with Lone Star Tangible Assets, with options for extensions. The Texas Bullion Depository could open in Lone Star’s current Austin facility as early as January. However, the company will also build a brand new facility in the Austin area that could be ready as early as December 2018.
Once ready, the depository will store gold and other precious metals on behalf of customers who have accounts at the facility. This fully-insured storage option provides an alternative to the private depositories largely located in the New York City area. Though located in Austin, Texans may not have to travel to open an account at the depository. There are plans to employ a network of licensed depository agents to assist Texans with the facility’s services. This new depository may also allow Texas to repatriate hefty sums of gold bullion currently being stored in New York.