The University of Texas recently re-allocated 5% of it's $20 billion endowment into gold. They took possession of actual bullion, not the imaginary stuff in triple-leveraged ETFs that Huckleberry dicks around with on his IBM Supercomputer.
This could explain why the Board of Regents voted to let the Lyons muni lease expire. You have to put those bricks somewhere.
With Argentinian-style inflation and poor fashion sense making a comeback, it's a smart move even with gold prices testing new all time highs. UT's occasional financial advisor, George Soros, recommended silver but Texas counts it's money while others try to follow along. Besides, cornering the silver market is so 1992.
The UT fund is not a charlatan investor such as a hedge fund. It's purchasing gold on its merits as a long-term, fundamental investment. As other institutional investors witness such a large and respected fund invest in gold, others’ resolve to increase investments in gold will be solidified. Since gold only comprises 0.7% of the world’s financial assets currently, it is massively underowned by institutions, and UT’s purchase could be the catalyst to finally bring institutions to the table in a large way.
This is not a quote from George Soros, but the guys at Seeking Alpha are pretty smart dudes.
Since you come to us regularly for answers to your urgent questions...
Why does our offense suck, Scipio?
Who will our new coaches be, Jesus?
Who will win the 2011 Master's, Vasherized?
What should I invest in to protect my family's inherited wealth, Sailor Ripley?
Here is some unsolicited advice.
One investment we're highly partial to here on our floating headquarters is ...
Cash in the profits on those FanTake shares you were given at registration and go big on the stuff that makes space age batteries. If most of the world's lithium reserves weren't confined to three highly unstable South American countries, savvy investors that manage university endowments would already know about this "rare opportunity" and you wouldn't have the chance to experience "untold levels of wealth" guaranteed* within six months! What UT fan doesn't dream of having a Swiss imported Krugerrand-lined bidet in his man cave?
ACT NOW! WHAT'S STOPPING YOU?!
*past performance does not guarantee future results, unless you're Greg Davis.
How you answer these final questions will tell us a lot about your investing sophistication. Think carefully before typing, stop and enjoy that new sensation, then ponder:
1. If you had $1 billion in physical gold bullion and your safe deposit box was already full, where would you put it? (hint: that's about 42,000 pounds in weight and one million cubic centimeters in size.)
2. What happens if more large institutions / managed funds / governments start taking physical possession of gold? (hint: It would be UT's fault for starting a run on Comex and causing formerly sophisticated societies, and places like Florida, to revert to Lord of the Flies type behavior).
Your work is due by happy hour. For Trips Right, that means noon.