There is a small dichotomy when it comes to the subject of gold possession. Owning yellow metal has always been a way of showing wealth. Many cultures, such as India, use displays of gold jewelry to establish social status. However, nations and individuals are also known to hide the exact amount of their gold possessions.
In fact, no one knows how much gold Americans own. The fungible nature of gold and its status as a safe haven cause some to hide or deny their ownership. This reality exists both personally and nationally. For example, central banks use their gold holds to guarantee foreign governments their economic stability and creditworthiness.
However, they are also known to underestimate or exaggerate their properties for specific political or financial reasons. Reports the largest gold reserves of all nations. At almost one ounce for every U.S. citizen, the country has more than 8,100 tons in its vaults.
However, even this number has a bit of mystery, as many believe that the world's most famous gold deposit, Fort Knox, may not contain as much gold as reported. Similarly, many analysts believe that China may own more gold than they are willing to report, and there are rumors as to why they would follow that strategy. Americans have been allowed to legally own gold coins and ingots since 1975, so that figure in dollars and current prices is undoubtedly much higher. However, that organization states that it cannot accurately declare private gold holdings in the United States or in most other countries.
All the discussion about where gold actually resides is important for evaluating the supply and demand side of the market price equation. That makes the question of how many Americans own the precious metal worthwhile. As noted above, both here and abroad, many people may prefer to keep their purchases and ownership of gold confidential. However, the trend is strong towards investment gold purchases.
In fact, surveys show that many Americans believe that gold is a long-term, high-yield investment. That explains why so many Americans are adding gold to their portfolios. One of the great testimonies of the lasting value of gold is the fact that the United States government continues to maintain the world's largest gold reserves, even though the U.S. UU.
It has been outside the gold standard since 1971, when President Richard Nixon determined that the dollar would no longer be directly convertible into gold. A relatively small part of the U.S. UU. ,.
The government's gold reserve, about 2.7 million Troy ounces, is the Mint's gold reserve, from which it produces coins authorized by Congress. Recent changes in the political climate and economies, both in the U.S. And abroad, they have made many investors uncomfortable. Some are investing in precious metals, hoping that they can retain or increase their value in times of uncertainty.
And Texans who do so are looking for a secure, nearby facility to store these assets. The timing of the Texas ingot deposit couldn't be better. Humans have searched for and maintained precious metals since ancient times, appreciating gold in particular for its beauty and immutable character, since it does not rust or corrode. Archaeologists believe that gold has been used in jewelry for at least 8,000 years, while the oldest known gold coins date from around 600 BC.
C. According to the World Gold Council, mankind has extracted no more than 175,000 metric tons (about 193,000 United States dollars,. Tons (s) of the Earth since the beginning of civilization. The US dollar, like all modern currencies, is no longer backed by gold, but the metal continues to play an important role in international finance as a means of supporting transactions between nations and affecting currency exchange rates.
It is the largest holder of gold reserves in the world, with almost 8,134 metric tons of this shiny metal (exhibition. But, of course, companies and individuals are also left with gold and other precious metals. And that's where the Texas ingot depot comes into play. Then, a two-year process began for a team of Comptroller's Office employees who recorded countless hours of research, developed and executed a Request for Proposals (RFP), and then evaluated the proposals of six companies that responded before selecting the finalist.
The results of the RFP process were revealed two days later. Comptroller Hegar announced that Austin-based Lone Star Tangible Assets (LSTA), a company that stores and trades precious metals, would operate the Texas ingot depot. The initial contract with LSTA is five years, with two one-year extension options. Tom Smelker, Director of the Treasury Operations Division of the Texas Comptroller.
Other countries, including Germany, Austria and the Netherlands, have recently repatriated large portions of their gold reserves from foreign banks, partly due to a decline in their confidence in the value of the euro. The flight to solid assets has created something of a boom in vault construction in Europe, as savers buy gold and need places to store it safely. So what are the benefits of having a depositary in Texas? Smelker says state legislators considered that individuals and businesses, both inside and outside of Texas, deserve an alternative to warehouses located primarily in and around New York City, and supported the creation of a secure, fully insured storage facility for precious metals in our state. UTIMCO could be a Texas depository customer, but it has imposed two conditions for bringing its shares to Texas.
First, storing gold in Texas should not cost more than in New York; and second, the depositary must be a member of COMEX, a metal exchange with standards that guarantee the quality of all gold transferred between accounts. But used by merchants around the world, COMEX currently licenses eight vault facilities, all within a 150-mile radius of New York City. The London Bullion Market Association is similar to COMEX and generally handles more international transactions. There is also the smallest International Commodity Exchange in the U.S.
LSTA President Matt Ferris said at a news conference in July that his company plans to work with its subcontractors to provide levels of liquidity and quality to COMEX, especially for large institutions. Smelker adds that the absence of a membership in COMEX should not be an obstacle. Who could be part of the Texas Depositary's client base? And it's not just high-powered investors who could use the deposit. However, as envisioned, the existing installation is only an interim measure.
The company is exploring locations in the Austin area to build a new purpose-built 35,000 to 75,000 square foot facility. Once these phases are completed, the depositary expects to include advanced offerings, such as storage for international customers, including foreign governments. Keep up to date on the progress of the Texas Ingot Depot on their website. As this writer points out, gold jewelry is likely to constitute a large part of Westerners' gold stocks.
Since its creation, investors and gold collectors from around the world have purchased more than 20,000,000 ounces of American Eagle gold coins. The World Gold Council, which compiles and disseminates mountains of statistics on gold, says it cannot provide an estimate of the number of Americans who own gold as an investment. According to a World Gold Council survey, “the number of respondents who will increase their own gold holdings has increased to 21%, compared to 20% last year. While the value of gold has skyrocketed in the open market since the United States ended the gold standard, the U.
This lack of data on the audit of US gold reserves. Speculation is increasing and doubts increase as to whether the official figures of the United States Gold Reserve are actually accurate. It shows that there is only enough gold in the world so that every adult in the world can hold an average ounce of gold. Many believe that U.S.
gold reserves have been lost or are hampered by gold leasing programs that intensified in the 1990s (i. None of the above facts and points change the truth that American Gold Eagle coins from the United States Mint are still the first choice for buyers of gold ingot coins in the U.S. and all over the world (according to sales data from the mint. .