Higher education fund buys gold over economic worries
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)
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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."
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