Sunday, April 17, 2011

Texas Hold 'Em

Now I'm towing my car
There's a hole in the roof
My possessions are causing me suspicion
But there's no proof
--Crowded House

The University of Texas endowment has taken delivery of $1 billion in physical gold. That's about 5% of the endowment. Hadn't realized that the UT endowment was so large, but it apparently manages the endowment of the entire UT system (among the largest public university systems) plus Texas A&M.

What I find most interesting is the choice to buy the physical metal rather than a securitized proxy such as GLD (although the fund may in fact own such instruments as well).

The impetus to buy gold looks to have come from board member Kyle Bass, a most savvy fund manager.

position in gold, GLD

1 comment:

dgeorge12358 said...

I expect gold to outdistance its tangible brethren as its unique monetary traits become more widely understood. Unlike dollars, euros or yen, it cannot be printed. In comparison with those suspect contenders for safety-seeking capital, it is scarce and difficult to produce.
~John Hathaway, October 2007