Texas Endowment to Review $1 Billion Gold Position, New CEO Says

Trouble on the horizon. Harvard city slickers are going to want to sell Texas physical gold. Don't let them Texans.

https://www.bloomberg.com/news/articles/2018-02-28/texas-endowment-to-review-1-billion-gold-position-new-ceo-says

University Of Texas Fund CEO Shares His Views On Gold, Explains Why He Took Delivery Of $1 Billion In The Precious Metal

Please watch this video, because I can assure other multi-billion dollar pension fund, mutual fund, and endowment fund managers are, and they will come to the same conclusion:  protect your purchasing power against a government hell-bent on destroying it.  And when da boyz buy in, they will move the needle a lot further north than you will.  The question one has to ask oneself is this:  should one buy now before the big boys buy tons of it, or should one wait, hoping to buy in at a lower price, but risk missing the train if prices soar instead?  No one can answer that question for you with certainty, as prices do fluctuate.  Connect the dots and come to your own conclusions.

http://www.zerohedge.com/article/university-texas-fund-ceo-shares-his-views-gold-explains-why-he-took-delivery-1-billion-prec

A couple notes:

1) CNBC has been anti-gold during this entire decade-long bull market in precious metals.  Meanwhile, CNBC has continually advocated real estate and equities while followers have been crushed by the real estate bubble and TWO stock market crashes in the last decade.
2) The "undisclosed location, underground in New York" where the UT endowment fund took delivery of their physical gold bullion is actually in HSBC's vaults.  As stated in earlier blogs, if I was Zimmerman, I would get a bunch of Texas Rangers to literally take delivery of their bullion and transport it into their own depository--in Austin, Texas.  Because when the crap hits the fan, HSBC may just declare force majeure, and renege, at which point, Texas would start another Civil War.

See disclaimers in the side bar.

Disclosure:  long precious metals mining shares.  As for physical gold and silver:  none of your business.

Texas University Takes Cue From Kyle Bass to Hold $1 Billion in Gold Bars

http://www.bloomberg.com/news/2011-04-16/texas-university-takes-cue-from-kyle-bass-to-hold-1-billion-in-gold-bars.html

“Central banks are printing more money than they ever have, so what’s the value of money in terms of purchases of goods and services,” Bass said yesterday in a telephone interview. “I look at gold as just another currency that they can’t print any more of.”

I blogged about this last week, but wanted to reiterate that the University of Texas Endowment fund took delivery on $1 billion of physical gold bullion--not an ETF, for reasons I've blogged about many times.  Use the Search function in this blog and enter "GLD" and "SLV" on why it makes sense to avoid those precious metals-based ETF's for gold and silver, respectively.

In a nutshell, those ETF's are good proxies for spot prices of gold and silver UNDER NORMAL MARKET CONDITIONS.  But under distressed conditions, or in the case of a default in the physical markets (i.e. the custodians don't have enough physical inventory to meet their obligations), the physical spot prices will decouple from the ETF prices.  In other words, owning GLD and SLV are merely paper claims to precious metals that may or may not exist in the custodian vaults.  In the case of a shortage, the spot price may soar, while holders of GLD and SLV will be left with owning empty claims.  There's nothing worse than betting in the right direction, and still losing everything.

This is the reason why Kyle Bass advised the University of Texas endowment fund to take physical delivery of their gold bullion, removing counterparty risk.  But there is one detail they did not account for.  Since HSBC is now the custodian for the endowment fund's gold (with serial numbers of gold bars on every certificate), HSBC becomes the counterparty risk, as bullion banks have been rumored and even prosecuted for charging storage fees to clients even though their clients' inventory is no longer in their vaults.  In other words, their clients' gold had been swapped, sold, or leased out--without knowledge and consent from the client!  I'm not suggesting HSBC has been guilty of this in the past, but it has happened.  <click here>

In June of 2007, Morgan Stanley agreed to pay $4.4 million to settle a class-action lawsuit with brokerage clients who bought precious metals and paid storage fees, when in fact it was alleged that Morgan Stanley wasn't physically storing their gold and silver at all. NIA believes we may now have an epidemic of banks selling gold/silver they don't have. If this isn't exposed immediately, it could bring down the world's financial system.

See disclaimers in the side bar.

Disclosure:  long precious metals shares, no position in GLD, no position in SLV.

Texas University Endowment Storing About $1 Billion in Gold Bars

OK, where are all the people that called me stupid, reckless, dumb, and crazy two years ago?

http://www.bloomberg.com/news/2011-04-15/texas-university-endowment-holds-almost-1-billion-in-gold-bars.html

My next prediction:  the University of Texas endowment fund will surpass Harvard's within the next few years.  Why?  Gold vs. derivatives.  Physical vs. paper.  Tangible assets vs. USDollar.  No contest.

By the way, I blogged about this last August, 2010:  <click here>.  Gold is up 30% since then, while silver has almost tripled, leaping almost 200%.

How Harvard blew up

Lawrence Summers, former Harvard President and now Obama's lead economic adviser, almost drove Harvard's enormous endowment fund into insolvency by placing wrong-way bets on interest rate swaps. Now he's doing it again with our government finances.

http://www.bloomberg.com/apps/news?pid=20601109&sid=aHQ2Xh55jI.Q