Oklahoma bill seeks to create gold and silver depository
Could Oklahoma become the next Fort Knox? The answer is “sort of” if an Oklahoma lawmaker gets his way. A bill just filed would create a gold and silver bullion depository in Oklahoma.
OKLAHOMA (KFOR) - Could Oklahoma become the next Fort Knox? The answer is “sort of” if an Oklahoma lawmaker gets his way. A bill just filed would create a gold and silver bullion depository in Oklahoma.
It would essentially be a facility where precious metals are stored with also the opportunity for individuals to use them in financial transitions.
There is a growing push headed up by conservatives to establish this type of depository across the country.
“I can't find a downside to this one... The more investment we bring into the state, the better off we are from a fiscal standpoint,” said Sen. David Bullard, R-Durant.
Sen. David Bullard, R-Durant, filed Senate Bill 1351 in hopes to establish the Oklahoma Bullion Depository in the Office of the State Treasurer, which would, “serve as the custodian, guardian, and administrator.”
It would be a secure place for the state government or private citizens to deposit their precious metals.
“So, to have transactional gold in Oklahoma is by far going to increase. Having those investments placed here in Oklahoma. But plus, also have a backup plan, a reserve currency here in the state of Oklahoma,” said Bullard.
According to the bill, the account holder could make transactions using a debit card against the balance.
Bullard said similar to banks, this would also require the state to keep a minimum of 10% of its assets in precious metals.
“What our goal is, is to get a gold and silver bullion depository that is transactional as well as can be used like of like a debit card. But that way we can attract more gold into our state and also have a currency that is a reserve currency,” said Bullard.
This bill mirrors a similar law in Texas.
“It's kind of an exciting idea that's starting to catch hold in other states. The language actually came from Texas,” said Bullard.
Texas lawmakers approved creating a depository in 2015. It took years before it officially opened.
Bullard said the depository is another way for Oklahomans to diversify their funds.
“The security of this is very, very important because monetary systems can fluctuate a lot. But gold and silver are both very, very consistent in their value. And so a lot of people are investing in gold and silver right now, and we want to do what we can to bring those investments to our state budget,” said Bullard.
The depository in Texas officially opened in 2018 after hiring an outside firm to manage it.
According to the Texas Comptroller, the depository has about $130 million of assets in it.
As for Oklahoma’s bill, it will be introduced in this upcoming legislative session that begins in early February.