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View Full Version : Texas University Endowment Storing About $1 Billion in Gold Bars


Marcus Bryant
04-16-2011, 11:17 PM
http://www.businessweek.com/news/2011-04-16/texas-university-endowment-storing-about-1-billion-in-gold-bars.html
boutons_deux
04-17-2011, 07:58 AM
They're betting, casino style, that record-high gold price stays high or goes higher.
DMX7
04-17-2011, 03:08 PM
A&M probably loves the title of this article.
ChumpDumper
04-17-2011, 05:37 PM
Hopefully they sell at the right time.
DMX7
04-17-2011, 06:22 PM
Right now, Gold is actually a fantastic investment. But no, I don't mean the gold coins you buy from Goldline and Glenn Beck.
Drachen
04-18-2011, 08:02 AM
A&M probably loves the title of this article.

Funny you mention this because my first reaction when reading the title was "Southwest has a billion dollar endowment?".
The Reckoning
04-18-2011, 11:48 PM
meanwhile theyre cutting staff, student aid and programs - then privatizing the campus. soon the school will only have engineering, science, business and communication (advertising) schools
ElNono
04-19-2011, 01:29 AM
meanwhile theyre cutting staff, student aid and programs - then privatizing the campus. soon the school will only have engineering, science, business and communication (advertising) schools

And Gold Bars...
Halberto
04-19-2011, 02:00 AM
A&M probably loves the title of this article.


lol that was the first thing I noticed.
DMX7
04-19-2011, 05:08 PM
UT has 19 metric tons of gold. If UT were its own country it would rank 55th behind Morocco's 22 tons.
RandomGuy
04-20-2011, 08:57 AM
WTF? Currency speculation in a university endowment fund?

Really?

This will come back to bite them in the ass.
RandomGuy
04-20-2011, 09:19 AM
Gold has all the earmarks of the classic asset bubble, IMO.
DMX7
04-20-2011, 10:02 AM
WTF? Currency speculation in a university endowment fund?

Really?

This will come back to bite them in the ass.

It's a hedge bet, most is not in gold. It's just to minimize risk.
RandomGuy
04-20-2011, 11:58 AM
It's a hedge bet, most is not in gold. It's just to minimize risk.

Gold only hedges inflation risk, and there are far better ways to hedge such risk.

There is a certain school of thought that has bought into the hysterical "hyper-inflation" schtick, perpetuated by the likes of Glenn Beck, and it is sad to see that mindset in evidence on an investment board for our university system.

Far from minimizing risk in this case, I think it is adding risk to the overall portfolio, hence my dismay.
RandomGuy
04-20-2011, 12:14 PM
http://www.google.com/search?q=gold+bubble

This kind of chatter in financial blogs very closely mirrors the chatter seen shortly before mortgages started imploding.

The Motley Fool article points out the underlying cause of the recent run up, i.e. the recent creation of ETF's based on gold.

Sooner or later, the cash flows running that up will slow and as SOON as that happens, and the fear subsides just a little, the bubble will burst and burn a lot of people.
Winehole23
04-20-2011, 01:48 PM
WTF? Currency speculation in a university endowment fund?

Really?

This will come back to bite them in the ass.Presumably they've taken delivery over a period of years, during the run up.
CosmicCowboy
04-20-2011, 02:04 PM
Deutsche Bank extremely bullish on gold...

http://www.ccstrade.com/futures-news/story/deutsche-bank-gold-must-hit-2000-to-be-viewed-as-bub-800336407/