This is going to cause a few more people to take a look at gold as an investment. (And make overseas investors even more nervous about the dollar)
The University of Texas Investment Management Co., the second-largest U.S. academic endowment, took delivery of almost $1 billion in gold bullion and is storing the bars in a New York vault, according to the funds board, reports Bloomberg.
The decision to turn the funds investment into gold bars was influenced, according to Bloomberg, by Kyle Bass, a Dallas hedge fund manager and member of the endowments board, Zimmerman said yesterday at its annual meeting. Bass made $500 million on the U.S. subprime-mortgage collapse.
Central banks are printing more money than they ever have, so whats the value of money in terms of purchases of goods and services, Bass said today in a telephone interview. I look at gold as just another currency that they cant print any more of.
The fund, whose $19.9 billion in assets ranked it behind Harvard Universitys endowment as of August, according to the National Association of College and University Business Officers, last year added about $500 million in gold investments to an existing stake, said Bruce Zimmerman, the endowments chief executive officer. The holdings reached about $987 million yesterday, as Comex futures closed at $1,486 an ounce.
The endowment, which oversees funds held by the University of Texas System and Texas A&M University, has 6,643 bars of bullion, or 664,300 ounces, in a Comex-registered vault in New York owned by HSBC Holdings Plc, the London-based bank, according to a report distributed at yesterdays meeting in Austin.
Contrast this investment against the trades made by Harvard under the then-guidance of former Obama advisor Larry Summers, where Harvard’s derivative trading resulted in billions in losses.
Reprinted with permission from the Economic Policy Journal.