Reply With Quote
They're betting, casino style, that record-high gold price stays high or goes higher.
They're betting, casino style, that record-high gold price stays high or goes higher.
A&M probably loves the le of this article.
Hopefully they sell at the right time.
Right now, Gold is actually a fantastic investment. But no, I don't mean the gold coins you buy from Goldline and Glenn Beck.
Last edited by DMX7; 04-17-2011 at 06:28 PM.
Funny you mention this because my first reaction when reading the le was "Southwest has a billion dollar endowment?".
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...
lol that was the first thing I noticed.
UT has 19 metric tons of gold. If UT were its own country it would rank 55th behind Morocco's 22 tons.
WTF? Currency speculation in a university endowment fund?
Really?
This will come back to bite them in the ass.
Gold has all the earmarks of the classic asset bubble, IMO.
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.
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.
Presumably they've taken delivery over a period of years, during the run up.
Deutsche Bank extremely bullish on gold...
http://www.ccstrade.com/futures-news...bub-800336407/
There are currently 1 users browsing this thread. (0 members and 1 guests)
Posting Permissions
