The power of III

Summum ius summa iniuria--More law, less justice

18 April 2011

University of Texas buys nearly $1 billion in gold, takes delivery for storage

In other words, not just a paper contract or ETF.  They want to posess the physical metal to prevent loss based on failure to deliver on a paper contract.  Apparently they fear a looming shortage of the physical metal when more investors try to convert from devaluing US paper dollars.

UofT is second to Harvard in endowment;  they are converting 5% of their net assets to gold.

Their money advisor sounds like he follows Austrian school principles:

Printing Money

“If you own a paper contract where they can only deliver you 10 cents on the dollar or less, you should probably convert it to physical,” said Bass, who isn’t related to Fort Worth’s billionaire Bass family. He said holding cash wasn’t a better choice because the rate of inflation exceeds money-market rates by 2.5 percent to 3 percent, eroding the value of cash.

“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 April 15 in a telephone interview. “I look at gold as just another currency that they can’t print any more of.”

(Emphasis added)

Bloomberg article here, via Drudge


  1. And they want HOW MUCH for tuition?! Bah! Thieves...

  2. I think UT needs to move that gold to it's own vaults, otherwise it is not really in it's possession.


  3. That's exactly right, Pickdog III, and it goes for them AND us. You have to have possession of the physical gold and silver, not have it sitting in a safe deposit box or a vault somewhere or as paper promises of ownership. The arguments to physical possession are that it might be stolen or the feds might confiscate it. To that I say, get yourself a good safe for your valuables. If the feds want to confiscate gold again, the first place they will hit is the SD boxes in the banks. You'll see that coming. Then bury it. And you can bury your stuff so that you can confound metal detectors (check out strategies on the internet). For example, what if you bury it under a concrete slab or in a junk yard full of rusted metal? Deny, deny, deny. Know this about the feds - they are stretched very thin. They rely on our co-operation. When millions of us refuse to make it easy for them to exploit and rob us, they won't be able to do doodly-squat!