Gold is power.

We know that gold historically holds its value over time and serves to preserve wealth, especially in times of economic chaos. But gold also offers its holder political power.

Countries that stockpile gold create a foundation of stability for their monetary systems. This is precisely why China is increasing its gold holdings. As we reported last week, China now boasts the fifth largest story of physical gold in the world. The country continues to buy up the precious metal as it eyes a more dominant role in the world's monetary system.

But it's not just countries looking to gold to provide political clout and economic power. Texas recently laid the groundwork for its own gold depository. The reason? To wrest some economic power from the federal reserve by bringing some monetary autonomy to the Lone Star State.

Governor Greg Abbot signed a law creating the state gold bullion and precious metal depository last month. In his signing statement, Abbot emphasized the autonomy the new facility will provide the state.

…the Texas Bullion Depository will become the first state-level facility of its kind in the nation, increasing the security and stability of our gold reserves and keeping taxpayer funds from leaving Texas to pay for fees to store gold in facilities outside our state.”

The Star-Telegram reported that the primary goal of the depository is to “bring home more than $1 billion in gold bars that are owned by the University of Texas Investment Management Co. and are now housed at the Hong Kong and Shanghai Bank in New York.” Under the new law, Texas gold will be beyond the purview or control of any “governmental or quasi-governmental authority” not directly administered by the state.

Controlling its own gold supply shifts power to the state, away from the federal government and other non-government entities. Control is power, and Texas just got a lot stronger. On top of that, having its gold secure within its borders broadens its options should a economic meltdown occur.