Texas Gov. Rick Perry (R) and freshman state Rep. Giovanni Capriglione have a plan to create a "Fort Knox of Texas" so that the state can start hoarding gold.
Giovanni has filed a bill to establish a Texas Bullion Depository to store the $1 billion worth of gold bars that are owned by University of Texas Investment Management Co. (UTIMCO), which are currently being housed by the U.S. Federal Reserve.
Speaking to conservative radio host Glenn Beck on Tuesday, Perry said that lawmakers were in the process of "bringing gold that belongs to the state of Texas back into the state." Beck has been a longtime paid spokesperson for the precious metal seller Goldline, which agreed to refund up to $4.5 million to former customers last year after being sued for marking up gold more than 50 percent.
"If we own it, I will suggest to you that that's not someone else's determination whether we can take possession of it back or not," Perry told Beck.
Former Rep. Ron Paul on Thursday explained to The Texas Tribune that the gold would be safer in the hands of Texans.
"If you think gold is a hedge, or a protection, you always want it as close to the individual and the entity as possible," Paul said. "Texas is better served if it knows exactly where the gold is rather than depending on the security of the Federal Reserve."
For his part, Capriglione said that he had gotten the idea while attending a tea party rally with Perry in Tarrant County earlier this year.
"Something on the scorecards of a lot of these businesses in deciding whether they want to come to Texas is stability and gold as being one of those items," Capriglione insisted. "I think it's been in his consciousness for a while in trying to get some sort of depository in the state of Texas."
"We don't want just the certificates. We want our gold. And if you're the state of Texas, you should be able to get your gold."
Tangent Capital Partners senior managing director Jim Rickards speculated to Yahoo Finance on Thursday that creating a "Fort Knox of Texas" could be a step in Texas creating its own currency and eventually moving to secede.