(The Center Square) – The Texas Bullion Depository (TxBD) is now holding precious metal Individual Retirement Account (IRA) assets. It is the only state-run bullion depository in the country.
The state legislature created the TxBD 10 years ago when it passed HB 483, which Gov. Greg Abbott signed into law. In doing so, Abbott was the first governor, and Texas was the first state, to create a state-administered precious metals depository in the country.
Now, under acting Comptroller Kelly Hancock, the TxBd is accepting precious metal IRA assets. The TxBd is partnering with Lone Star Tangible Assets (LSTA) in collaboration with Equity Trust Company to offer a secure, state-administered option for Texans to store their retirement investments, the comptroller’s office says.
Customers can deposit precious metal IRAs, buy and sell precious metals, and deposit assets in a safer environment than those offered by private facilities, the comptroller’s office argues. The TxBD “eliminates the financial and operational risks associated with for-profit private depositories and provides a higher standard in precious metals storage,” it says.
Security safeguards include state police officers, armed private security, numerous authentication tests for precious metals, management oversight, regular state audits and other measures, it explains. The facility is also located on a 10-acre lot, allowing for security surrounding the building and its perimeter “not usually available to depositories near large metropolitan areas,” the comptroller’s office says.
The TxBD is located in a 40,000-square-foot facility in Leander, Texas, just north of Austin. The facility has two storage options, “a Class III vault (the highest security level) that can hold up to 12 million ounces of gold, platinum or palladium, and a highly secure storage area that can hold more than 17.5 million ounces of silver,” the comptroller’s office said.
The TxBD does not require Texas residency to apply or qualify for an account. All U.S. citizens and residents, including businesses, trusts and estates, may apply for a TxBD account to deposit bullion, silver, platinum or palladium. Precious metals can be used for regular accounts and IRA storage.
If the precious metals are bought and stored in Texas, there is no sales tax on the purchase. In 2019, the Texas Legislature passed and Texas voters approved a constitutional amendment allowing all precious metals stored at TxBD to be exempt from property taxes.
Since 2018, both account holders and deposits have increased.
From 2018 to June 2021, nearly 1,000 account holders have made deposits; average deposits are valued at roughly $140,000.
During the COVID-19 lockdown era, deposits surged. From September 2019 to February 2020, deposits increased by $12 million or 42%. Over the next six months, from March 2020 to August 2020, total deposits increased by $52 million or 129%, according to the comptroller’s office.
By 2025, the number of account holders increased to more than 1,700 with the total value of deposits surpassing $400 million this July, according to the most recent data.
“It’s been inspiring to experience the maturation of the program from its inception to full development. We are proud of the Depository’s continued growth and success,” Macy Douglas, TxBD administrator and director of treasury operations at the Comptroller’s office, said. “It is evident from the substantial growth that customers are confident in the safety and security provided by a state-administered depository.”
Despite this growth, the legislature passed another law this year to provide even more choices for consumers, which Abbott signed into law. This law requires the comptroller’s office “to establish and issue a currency based on gold and silver that can be used as legal tender in the payment of debt and can be transferred electronically,” The Center Square reported. Part of the law becomes effective Sept. 1, 2026, and May 1, 2027.
