BENEFITS OF USING A PRECIOUS METAL WAREHOUSE New customers will get the first three months of storage completely free of charge. Texans can now store their precious metals in a secure, publicly backed vault close to home, as the first state gold deposit in the United States opens in Austin. We send precious metals to people who literally want to bury them in their backyard or store them in their garage in a hidden place. UTIMCO officials say that the new depositary from Texas would have to become a member of the COMEX platform of the Chicago Mercantile Exchange, where gold futures contracts are traded, so that any transfer can go ahead.
Although he began by buying gold bars in the form of ingots, Small says he has recently bought American Eagles and Canadian Maple Leafs because he believes that “they are more fungible. The fee structure for storing gold in a deposit is similar to that of buying any other financial asset. Greg Abbott said at the time that the project would allow Texas to “repatriate gold from New York.” The state has also started “very preliminary talks” with UTIMCO to discuss the possibility of moving gold to Texas, according to Tom Smelker, the state deposit administrator. In addition, Clark says, gold can be deposited as security to receive a loan, which avoids the tax consequences of selling the product.
The cost of storing your metals in the Texas ingot warehouse varies depending on the total value of the metals stored in your account, multiplied by the annual storage fee for that range of values. Louis Palafoutas, a Morgan Gold gold bullion dealer who has been in the gold industry for three decades, says that while some buyers choose to store gold in a safe at home, others ask to open accounts at Brink's or Delaware Depository, where the Comex and the Internal Revenue Service keep their gold. Companies calculate the daily rate based on the price of gold multiplied by the number of ounces in an account, multiply it by the percentage rate and divide it by 365 (days) to determine the annual rate. Regardless of the storage option investors choose, most agree that peace of mind is worth its weight in gold.
Mike Clark, president and CEO of Diamond State Depository, points to the danger of investors storing gold ingots themselves. For example, gold bullion coins, such as the American Eagles, which are guaranteed by the federal government, have inherent liquidity because they are undeniably bought and sold by coin dealers, banks and commercial traders, Clark says. Two years later, Capriglione rewrote the bill to allow the state to hire an outside company to manage the warehouse, with the expectation that the company would charge customers fees to cover installation costs. When considering storing gold in a deposit, Clark says investors should always ask if their investment is kept on or off the parent company's balance sheet.