Texas considers repatriating university pension fund's gold

This is happening as I predicted here earlier this year and here in 2011.  A couple years ago, Kyle Bass initiated UTIMCO's sales of the GLD ETF, and purchase of physical gold bullion to usurp counterparty risk.  I applauded the move, but I suggested UTIMCO didn't go far enough, as the gold bars reside in New York, not in Austin, TX.

As it stands, Texas Governor Rick Perry and the legislature are seeking repatriation of Texas' gold.  Smart move, y'all.

http://www.gata.org/node/12370

PIMCO, Texas Teacher Retirement System, Soros Buy GLD; Paulson Sells

http://www.goldcore.com/goldcore_blog/pimco-texas-teacher-retirement-system-soros-buy-gld-paulson-sells

Kyle Bass Urges Texas Endowment Fund to Hold Gold Hedge as Assets Shrink

http://www.bloomberg.com/news/2012-02-02/kyle-bass-urges-texas-endowment-fund-to-hold-gold-hedge-as-assets-shrink.html

“I’m against selling any of the gold,” Bass said today at a meeting of fund directors in Austin, citing the need for a hedge against mounting risks driven by government deficits in the U.S. and Europe. “As every day goes by, I see deflation in the things you own and inflation in the things you need.”

Charles Tate, chairman of Capital Royalty LP in Houston, and other Utimco trustees echoed the wary outlook held by Bass, citing concern that the Federal Reserve’s plan to keep interest rates low for two years may only delay an economic decline.

The Fed’s governors, led by Chairman Ben S. Bernanke, “are scared as they can be of deflation,” said Ardon Moore, president of Lee M. Bass Inc., an energy company in Fort Worth, Texas. “This is a grand experiment and they typically never end well.”


Kyle Bass, a managing partner at Hayman Capital Management LP and a Utimco trustee who isn’t related to Lee Bass, faulted the world’s biggest central banks for expanding the money supply by what he said was $15 trillion during the past five years. In April, he advised the fund on holding gold bars rather than futures contracts.