• Steve H. Hanke
    05/04/2016 - 08:00
    Authored by Steve H. Hanke of The Johns Hopkins University. Follow him on Twitter @Steve_Hanke. A few weeks ago, the Monetary Authority of Singapore (MAS) sprang a surprise. It announced that a...

A Golden Tipping Point: University of Texas Takes Delivery Of $1 Billion In Physical Gold

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Sat, 04/16/2011 - 20:00 | 1176739 Muir
Muir's picture

Uuuuuhhhhhh!

Sat, 04/16/2011 - 20:11 | 1176758 Missing_Link
Missing_Link's picture

Hooray for UT!  I'm proud of y'all.

Sat, 04/16/2011 - 20:11 | 1176767 Popo
Popo's picture

Wait. The University of Texas has a billion dollars worth of physical gold?

Hory shit

Sat, 04/16/2011 - 20:17 | 1176777 Michael
Michael's picture

LMAO at the Bernank and the JP Morgue.

Sat, 04/16/2011 - 20:32 | 1176806 Pegasus Muse
Pegasus Muse's picture

Hook'em Horns!  They need to get that bullion the hell out of nyc to a nice secure vault in the Republic of Texas. 

Sat, 04/16/2011 - 20:39 | 1176828 Blano
Blano's picture

No doubt.

Given the general disdain NYers have for Texas (see Schumer's comments about Houston and the space shuttle) UT needs to get that stuff a lot closer to home.

Sat, 04/16/2011 - 21:25 | 1176925 Tejano
Tejano's picture

I'd say, "The feeling is mutual", but "disdain" doesn't quite get it - not by a long shot.

Sat, 04/16/2011 - 22:14 | 1177059 SWRichmond
SWRichmond's picture

I agree.  There has to be someplace in Texas to keep this.  Maybe their actually moving it to Texas will be the harbinger of secession.

Sat, 04/16/2011 - 22:28 | 1177080 Robot Traders Mom
Robot Traders Mom's picture

Hopefully we can be the first to buck the system. This is a big fucking deal. Hook 'em!!!

Sat, 04/16/2011 - 22:53 | 1177119 CrazyCooter
CrazyCooter's picture

I have multiple blood relatives with finance degrees from UT and multiple friends with finance degrees from UT.

I am making it a point to ensure they all know about this.

The math isn't hard.

Regards,

Cooter

Sun, 04/17/2011 - 06:58 | 1177530 SNAPPERHEAD
SNAPPERHEAD's picture

Hey Cooter, 

     Who do you sell your gold to when it's $5,000/oz?

Sun, 04/17/2011 - 08:49 | 1177592 spiral_eyes
spiral_eyes's picture

people who need to eat. merchants won't take crappy paper or electronic paper. there will be a boatload of people willing to exchange the deeds on their land and real estate for money (i.e. gold).

Sun, 04/17/2011 - 08:51 | 1177597 Raynja
Raynja's picture

Wrong question, at $5000/oz there would have to be huge demand to maintain that price.  The question is, what do you trade your gold for?

Sun, 04/17/2011 - 09:13 | 1177620 Dan The Man
Dan The Man's picture

 

I think you should just hang on to it until the dust settles...trade it in AFTER the new currency starts up...(or after the war

 

I think it gives you the best exchange point....shit, when IS the best exchange point?

Sun, 04/17/2011 - 10:53 | 1177720 WaterWings
WaterWings's picture

It depends on the counterparty. If you go to the market you'll get the spot, in fiat currency. Private exchanges could be much, much, much more "lucrative" depending on the desperation of the buyer and what assets they offer. 

Sun, 04/17/2011 - 13:51 | 1178060 Pumpkin
Pumpkin's picture

I know this one!  Some one much smarter than you.

Sun, 04/17/2011 - 14:49 | 1178252 bulldung
bulldung's picture

You can't put a number on it. William Buckler in The Privateer has suggested that you keep PM until they are used for money. I think I will use PM as a temporary store of value redeeming it only when I need to acquire some good or service as a form of money or to pay a price agreed upon before I redeem for fiat money. At this point we may be pre bubble dynamics, but this news gives PM buying credibility that may drive PM into speculative bubble type buying.

Sat, 04/16/2011 - 23:18 | 1177172 pan-the-ist
pan-the-ist's picture

SW, that might be the first time you've ever chosen the wrong "there", but I am going to point it out cuz I'm a feeling like being a jerk.

That being said, I don't know the total value of the assets they manage, but that is a huge bet.

Sun, 04/17/2011 - 00:17 | 1177278 Selah
Selah's picture

 

"their", not "there"

Grammar Gestapo is a difficult job...

 

Sun, 04/17/2011 - 00:58 | 1177343 Blanche DuBois
Blanche DuBois's picture

Wrong too...should be "they are" or "they're"...I'm feelin' like being a bigger jerk! ;~>

Sun, 04/17/2011 - 01:16 | 1177364 IslandMan
IslandMan's picture

 

No, it should be "their".

eg.

Their moving the gold is a good idea. i.e. the moving (by them) is a good idea.

or

They are moving the gold.

But you can't say :

They're moving the gold is a good idea.

Sun, 04/17/2011 - 01:37 | 1177376 Blanche DuBois
Blanche DuBois's picture

No, "They are actually moving the gold to Texas" Or "They're actually ... (the contraction of they are)

Sun, 04/17/2011 - 02:16 | 1177413 Temporalist
Temporalist's picture

It is not "they are," it is their as in "their future action of moving the gold may be the harbinger...etc."

Sun, 04/17/2011 - 02:27 | 1177425 Blanche DuBois
Blanche DuBois's picture

No, no, no! "they" in this context is a pronoun, not a possessive pronoun...future action is irrelevant in this case. Sorry, but that's the fact!
;~>. Just sayin'...

Sun, 04/17/2011 - 03:12 | 1177444 Temporalist
Temporalist's picture

The future had nothing to do with it.  You are just reading it wrong.  It is not They Are.  Read the sentence with they are..."Maybe they are actually moving it will be the harbinger..."  doesn't make sense.  "Maybe their action of actually moving it will be the harbinger..." makes sense.  Actually the actually just gets in the way so if it helps you:  "Maybe they are moving it will be the harbinger" or "Maybe their action of moving it will be the harbinger." 

Sun, 04/17/2011 - 05:39 | 1177492 malusDiaz
malusDiaz's picture

Maybe their moving is the herald (of the gold movements) Kry!

Sun, 04/17/2011 - 03:39 | 1177451 i-dog
i-dog's picture

Blanche, you're an obstinate idiot. Read the whole sentence and you'll see that SWR and Temporalist are correct. The sentence already has a verb: "will be".

Sun, 04/17/2011 - 05:36 | 1177491 Stormdancer
Stormdancer's picture

My daughter had an English teacher like Blanche once.  I thought I was going to have to make her eat a Holt Handbook page by page, but she did finally correct the grade...after going two levels over her head.  Arrogant bitch....couldn't teach English and refused to admit it.

Sun, 04/17/2011 - 06:06 | 1177501 eaglefalcon
eaglefalcon's picture

"Maybe their actually moving it to Texas will be the harbinger of secession."

 

This sentence doesn't sound very stylish, but is grammatically correct nonetheless.  Maybe he meant to say:

"The fact that they are actually moving it to Texas is the the harbinger of session" or

"That they are actually moving it to Texas is the harbinger of session"


Regarding "their moving", "moving" here functions as a "gerundium" (a verbal noun) instead of a verb in present participle form.  This verbal noun follows the possessive pronoun "their".  In this case "their moving it to Texas" is equivalent to "their movement of gold to Texas"

The heck with grammar!  I like what a Texan would say: "THEM moving it to Texas would be a harbinger of session"  Ain't it great

Sun, 04/17/2011 - 06:09 | 1177507 IslandMan
IslandMan's picture

 

Thank you, eaglefalcon, that's exactly correct !

Finally, someone(else) knows some English grammar.

Sun, 04/17/2011 - 08:15 | 1177572 duo
duo's picture

tell you whut.

Sun, 04/17/2011 - 09:35 | 1177643 Bendromeda Strain
Bendromeda Strain's picture

Hang around ZH long enough and you'll come to realize that SW is rarely if ever wrong about anything. Kind of like Kyle Bass...

Sun, 04/17/2011 - 10:19 | 1177684 Blanche DuBois
Blanche DuBois's picture

I concede!

Sun, 04/17/2011 - 10:42 | 1177703 bbq on whitehou...
bbq on whitehouse lawn's picture

That the're moving gold to real, is'n a right good'n id'er. Now if'n them teach'r money be want'n to trust them there New York typ's; wit'n their gold. Well'n don't seem, as i can tell it to be, a right good choice. But, that is'n just'a me think'n out loud.

Sun, 04/17/2011 - 11:10 | 1177741 JohnnyCrash
JohnnyCrash's picture

Dude, you're thinking of the Beverly Hillbillies. Try "King of the Hill" for Central Texas patois.

I'll tell you whut.

Sun, 04/17/2011 - 12:00 | 1177813 nmewn
nmewn's picture

Dang ole internet thing...clickety click click click...yup.

Sun, 04/17/2011 - 01:55 | 1177393 glenlloyd
glenlloyd's picture

the article says 19.9 billion in assets...did you read it?

Sun, 04/17/2011 - 09:47 | 1177653 juangrande
juangrande's picture

The story goes that at the turn of the 20th century or thereabouts, U of T was swindled out of some prime east Texas timberlands. In return, they received acreage in the west Texas desert. That desert was the Permian Basin. The largest oil find of its day!

Sun, 04/17/2011 - 05:35 | 1177487 pops
pops's picture

"Their" is correct.

Your welcome....;-D

 

 

Mon, 04/18/2011 - 06:12 | 1179461 TerraHertz
TerraHertz's picture

Grammar wars, gotta love 'em.

But it IS 'their', because 'moving the gold to Texas' is a hypothetical future tense, since they are NOT currently planning to do so. Forget grammar errors, the real mistake here is choosing to store the gold in a NYC vault.  I wonder if that would be some recently opened JPMorgue bullion vault? One with convenient clandestine moving truck access tunnels, like the basement vaults of the WTC? A billion dollars in gold - hey, that's probably worth staging another 'terrorist attack' for.

I suspect the University of Texas is thinking with vastly insufficient paranoia, and haven't quite grokked this whole 'precious metals for preservation of wealth against government assaults and outright theft' survivalist thing.

But what do I care about their conceptual handicaps. Picked up a nice 12Kg of physical today; no suspect NYC vault involved. Almost enough to lift the pall of Fukushima gloom for a while. Almost.

 

 

Sat, 04/16/2011 - 22:44 | 1177107 Urban Roman
Urban Roman's picture

Yee. Haa.

Sun, 04/17/2011 - 02:51 | 1177437 Scottj88
Scottj88's picture

So the University of Texas now has more gold than Fort Knox?

Sun, 04/17/2011 - 11:29 | 1177770 jplotinus
jplotinus's picture

The desire to have "more gold than thou" may be the crux of the tipping point.  If UT has spawned a race to acquire gold, and to do so on an American sectional/factional basis no less, then, in that event, financial infighting could become so intense as to threaten oligarchical control.  This is potentially serious precisely because it might destabilize the already tenuous financial power structure.

Here's a series of cryptic suggestions to President Obama:

1--Fire Bernanke;

2--Have Justice Department to indict those responsible for mortgage fraud;

3--Bring warring in Afghanistan, Iraq and Libya to an immediate halt;

4--Ration and control price of petroleum products; and

5--Double Secret Service protection.

Absent presidential leadership, the race to hoard PMs amidst the overall fog and deception of stupid wars and blatant financial manipulation might cause worldwide turmoil before the Mayan Calendar can  do its number.  Sheesh, at this rate, we won't even make it to 2012 doom.

Sun, 04/17/2011 - 12:25 | 1177861 Uncle Remus
Uncle Remus's picture

5--Double Secret Service protection.

Might be better off with some bow-tied NoI krew.

 

Jus' sayin'.

Sun, 04/17/2011 - 12:55 | 1177911 sun tzu
sun tzu's picture

Rationing and price controls have a great history of working LOL

Sun, 04/17/2011 - 12:28 | 1177866 Klaus Daimler
Klaus Daimler's picture

Dude, if you've been handling your philharmonics lately, you've probably got more gold in your fingerprints than Ft Knox contains.

Sat, 04/16/2011 - 22:53 | 1177118 mayhem_korner
mayhem_korner's picture

We'll know the locale pretty quick - it'll be the one with a busload of ten-gallon hats "visiting" the future United States of Texas' embassy to the Occupied North. 

What fun!

Sun, 04/17/2011 - 01:09 | 1177353 Southern Grey
Southern Grey's picture

You know the ditty..."The eyes of Texas are upon you"... I wouldn't leave anything of value in New York much less a cool $1 Billion in shiny gold bars.

Sun, 04/17/2011 - 00:00 | 1177251 jplotinus
jplotinus's picture

When it was announced that France was leading the invasion of Libya, a ZHer (don't remember who) said, and I quote:

"This will end well."

So it is here.  With UT 1) taking possession of physical gold; and, 2) parking it in NY;, not only do we have playing out before us the dynamics of financial system collapse, we also have, in no particular order;

a) A rekindling of Civil War antagonisms; and

b) Open, indirect conflict between Fed branches (Dallas - NY).

So, indeed, this will end well.

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