FORGET Fort Knox or the U.S. Federal Reserve. Texas has decided to start keeping its gold holdings within its own borders. But what makes sense politically in such a sovereignty-loving place is creating a logistical conundrum.

    Texas is the only U.S. state that owns an actual stockpile of gold, according to financial industry experts — not just gold futures or investment positions, but approximately 5,600 gold bars worth around US$650 million. The holdings, stored at a New York bank, for some harken back to century-old fears about the security of currency not backed by shiny bullion.

    The Legislature’s decision this summer to bring its gold cache home was hailed by many conservatives, and even some on the far left, who are suspicious of the federal government.

    “There will always be the exact same amount of gold in there as the amount that was put in,” no matter what happens to the financial system, said Republican state Rep. Giovanni Capriglione, a former tea party organizer who authored the gold bill.

    But for the Texas comptroller’s office, which has to implement the policy, the catch is that the new Texas Bullion Depository exists in name but not reality.

    The law doesn’t say where the depository would be or how it should be built or secured. No funding was provided for those purposes or for leasing space elsewhere. Further complicating matters is a provision allowing ordinary people to check their own gold or silver bullion into the facility.

    “We are honestly at the phase where the questions we are answering are creating more questions that we have to answer,” said Chris Bryan, a comptroller’s office spokesperson.

    Charged with figuring everything out is a four-member task force within the comptroller’s office, which dispatched an official to a precious metals conference to study up.(SD-Agencies)