University of Texas Investment Co. Turns Funds into Gold, Literally
April 18th, 2011$1 billion dollars of gold bullion is being stored in a New York vault for the second largest academic endowment fund in the country. The choice to switch their funds to gold was an idea from Kyle Bass who personally profited quite nicely during the sub-prime mortage collapse. As a member of the board his investment choice was welcomed and turned into reality for the school’s endowment fund.
Our neighbors, Harvard University’s endowment fund lost billions during the financial crisis under the influence of Larry Summers. Hmph, some advisor! When University of Texas’ Kyle Bass was asked the reasoning for his suggested investment of choice he stated:
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…I look at gold as just another currency that they can’t print any more of.”
The school investment company has already seen profitable results. Congrats to University of Texas for recognizing real money. Let’s see if this catches on…
h/t Robert Wenzel – EconomicPolicyJournal.com
