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

I think this is smart real smart. Holding touchable gold rather than some papers or few megabytes of information on some server.

http://www.bloomberg.com/news/2011-...kyle-bass-to-hold-1-billion-in-gold-bars.html

The University of Texas Investment Management Co., the second-largest U.S. academic endowment, took delivery of almost $1 billion in gold bullion
The fund, whose $19.9 billion in assets ranked it behind Harvard University’s endowment as of August

“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.”

 

looks like gold has topped out

 

Ultra-conservative investors tend to do silly things at long-term peaks in markets.

 

I don't understand your post. They bought the gold at around $1100 per ounce. They are taking delivery to have it in physical form rather than paper form.

 

1) Are you sure? If they had bought their entire position more recently and taken delivery, I'd give it more "contrary opinion" value.
2) The desire to own the "metal" instead of the "paper" is indicative of excessive fear, particularly for that category of investor who is expected to be more conservative and who can require more time to get involved with that type of alternative investment.

 

I hate seeing stuff like this when I'm long gold.

 

In your post, you imply that they bought at the peak. They bought in the $1100s I believe. The only difference is they have the gold instead of IOUs.

 

I think the mistake lot of people are making is believing that this is business as usual.
Thinking that this is just another short term hiccup. I think owning physical gold will prove to be the most important decision in life of those who own it.

And the biggest decision not made by those who didn't make it.

 

i could use some gold myself...right about now.

 

Rumoured to be held in NY banks. That's a mistake for that much gold. I wouldn't let those jackals near even 1 ounce of my metal.

If I were them I'd ship it to Texas for safekeeping.

PLus, they bought the Gold around $1100 so not a bad price at all. I also woulnd't put Kyle Bass or who he advises in the same boat as other big funds, like Calpers. When they announce they're buying, probably $3,000 above here, then you can be worried.