Use access key #2 to skip to page content.

Higher education fund buys gold over economic worries

Recs

19

July 16, 2010 – Comments (4)

Well this is very interesting. It looks like mainstream money managers are starting to take gold seriously as an investment. It is not just restricted to us wacko-crazy-nut job-gold bugs anymore. Of course the "brilliant" retort will be Texas A&M money managers are just a bunch of wacko-crazy-nut job-gold bugs too. Maybe. But I tend to think of myself as a pretty reasonable guy (I know many of you probably take issue with this), and here's a shocker, these money managers are probably pretty reasonable too. I think public consciousness is changing about gold (and no, not just due to cash4gold commericals, and quite frankly that is a non-thinking cop-out retort). Gold is honest money. And as "radical" as this idea is, it is starting to catch on (I suppose being around for a few thousand years it might get a little respect, but that's okay)

---------------------------------------

Higher education fund buys gold over economic worries
By R.G. RATCLIFFE and JEANNIE KEVER
July 14, 2010, 9:40PM

http://www.chron.com/disp/story.mpl/business/7108909.html

[excerpt]

AUSTIN — Fearing unstable international financial markets and the possibility of high inflation, Texas' higher education investment managers have bought more than $500 million in gold.

The gold purchases represent only 3 percent of the University of Texas Investment Management Co.'s $22.3 billion in investment funds, but it indicates how deeply the fund managers are concerned about the global financial future.

With the state's endowment funds designed to generate a 5.1 percent distribution each year to the University of Texas and Texas A&M University, it is rare for the investment managers to put large sums of money into a commodity whose value usually only grows through inflation.

"Recently, we've added 3 percent, 3 percent of our portfolio, into gold as a protection against inflation, but even more as a lack of confidence in financial markets due to extraordinary government fiscal and monetary stimulus," UTIMCO CEO Bruce Zimmerman told the University of Texas board of regents Wednesday. "I wish I could tell you the future looked rosy. Unfortunately, that's not our view. At best, we believe the future is uncertain."

4 Comments – Post Your Own

#1) On July 16, 2010 at 3:18 PM, oldfashionedway (35.55) wrote:

[exerpt] 

Investments in gold, natural resources and hedge funds are a means of countering that possible trend, he said. He said most of the gold purchases have been through futures trading, but he said UTIMCO may take physical possession of some gold.

[For those who are curious as to which type of investment vehicle was chosen by the board.]

Report this comment
#2) On July 16, 2010 at 5:50 PM, SamTheHobbit (30.19) wrote:

Gold and precious metals funds are becoming more acceptable to investors, especially those nearing retirement who have been following the sickening ride of their 401K accounts.  I think most of these individuals are aware that gold has gone way up over the last 10 years, while the DJIA keeps revisiting 10K.  I would guess that most people have seen G. Gordon Liddy's gold commercial more often than Gilligan Island reruns, so I don't think that the general public will be that surprised when pension funds and other large investment groups start adding gold to their portfolio.

Report this comment
#3) On July 16, 2010 at 10:46 PM, Tastylunch (29.48) wrote:

Wow, thansk binve I didn't see this. This is horrible news for gold investors.

This is very bearish for gold imo.

Pensions funds and higher eductaion funds tend to buy at tops... The track of CALPERs and their ilk is just awful. The universities like UT adn  A&M in this case,are a little better but I've yet to see any that are ever early or midstream participants in rally...

maybe gold really will correct pretty hard further here before resuming upwards....

Report this comment
#4) On July 17, 2010 at 8:55 AM, binve (< 20) wrote:

Tastylunch ,

>>Pensions funds and higher eductaion funds tend to buy at tops... The track of CALPERs and their ilk is just awful. The universities like UT adn  A&M in this case,are a little better but I've yet to see any that are ever early or midstream participants in rally...

LOL! That's true, a very good point

>>maybe gold really will correct pretty hard further here before resuming upwards....

Wouldn't bother me in the slightest, in fact I welcome it. I am investing in gold for a long time so a nice correction would be great.

THanks!..

Report this comment

Featured Broker Partners


Advertisement