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A Golden Tipping Point: University of Texas Takes Delivery Of $1 Billion In Physical Gold
Tipping points are funny: for years, decades, even centuries, the conditions for an event to occur may be ripe yet nothing happens. Then, in an instant, a shift occurs, whether its is due a change in conventional wisdom, due to an exogenous event or due to something completely inexplicable. That event, colloquially called a black swan in recent years, changes the prevalent perception of reality in a moment. This past week, we were seeing the effect of a tipping point in process, with gold prices rising to new all time highs day after day, and the price of silver literally moving in a parabolic fashion. What was missing was the cause. We now know what it is: per Bloomberg: "The University of Texas Investment Management Co., the second-largest U.S. academic endowment, took delivery of almost $1 billion in gold bullion and is storing the bars in a New York vault, according to the fund’s board." And so, the game theory of a nearly 100 year old system of monetary exchange has seen its first defector, but most certainly not last. With an entity as large as the University of Texas calling the bluff of the Comex, the Chairman, and fiat in general in roughly that order, virtually every other asset manager is now sure to follow, considering there is not nearly enough physical gold to satisfy all paper gold in existence by a factor of about 100x. The proverbial Nash equilibrium has just been broken.
From Bloomberg:
The fund, whose $19.9 billion in assets ranked it behind Harvard University’s endowment as of August, according to the National Association of College and University Business Officers, added about $500 million in gold investments to an existing stake last year, said Bruce Zimmerman, the endowment’s chief executive officer. The holdings are worth about $987 million, based on yesterday’s closing price of $1,486 an ounce for Comex futures.
Years from now, when historians attempt to define who may have started it all, one name may emerge...
The decision to turn the fund’s investment into gold bars was influenced by Kyle Bass, a Dallas hedge fund manager and member of the endowment’s board, Zimmerman said at its annual meeting on April 14. Bass made $500 million on the U.S. subprime-mortgage collapse.
“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.”
In summary - the fiat tide is now going out. And among those who will first be
observed swimming naked are the very same people whose fate has been so
very intrinsically linked to the perpetuation of a flawed regime (and
who coined this very saying). In the meantime, hold on to your hats: should a scramble for delivery ensue, the recent parabolic move in various precious metals will seem like a dress rehearsal for what is about to transpire.
The only open question is who was the broker with enough gold to deliver to the UofT. We hope to find out soon enough. We also hope that the UofT is smart enough, and that Kyle Bass advised it, that if they are getting "delivery" in a Comex vault in New York, the gold has likely already been leased out at least several times to various entities demanding paper allocations...
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I think you are right Tyler - this will be seen in retrospect as THE tipping point. Endowment managers have to report to Boards of Trustees who are notoriously nit-picky and judgmental. NOBODY will want to be asked "where were you when UT was buying gold". Academia is quite possibly the most 'gotcha' institutional environment on earth, and everyone runs super-paranoid scared. Once the endowment fund 'managers' start scrambling the game is on. Gold $10,000 by December 2011; silver ( which they haven't caught on to yet) a quite respectable $300. And then - there's the rest of the world. Pow - to the moon. (Thanks Ralph).
Wife is an Aggie, would not forgive me; but bless UT & fuck the Plutocrates...BTW - we are in Ag $ 11 & Au $800
how do you get the aggie off of your front porch??? ;-)
- Ned
{and with all due playfulness, why, many of my best friends are aggies!}
Plutocrates...is that a new philosopher I've never heard of?
If only UT knew how many other people own that same gold.
Contrarian in me sez time to sell PMs. Not enough gold to keep the oligarchs in the lifestyle to which they've become accustomed. They will do what it takes. Only a violent revolution will change the game.
I'll buy your silver
"Contrarian in me sez time to sell PMs."
Used to think the same way...it's difficult to overcome the programming of FRN's having any real value...it takes time.
"Not enough gold to keep the oligarchs in the lifestyle to which they've become accustomed."
There is more than enough gold if it's valued properly.
Think about it this way...if 1,486 pieces of paper equal an ounce of anything, what's to say 10,000 or 20,000 pieces of paper cannot?...it's the same game they themselves play with valuations only now it's on different terms because they have been caught screwing the pooch regarding debt obligations.
Piss on em...I'm not liable for the actions of interconnected thieves and the sooner everyone wraps their heads around that concept the better off we will all be.
My sentiments precisely!
Very few seem to get these points.
Common law says one private citizen is not held liable to pay for debts or damages done by another private citizen(s) who have no legal connection, in this case the Federal Reserve.
The Federal Reserve Act itself is un-constitutional (IMHO) as the states were not allowed a vote on it's creation to coin the national currency. Per the Constitution ratified by the states and their people, only Congress has the power to fix the national currency's value, not a private corporation. Here is where any connection between us & them (federal representation) was lost in the chain. We gave Congress the power, we did not give them the power to abdicate their responsibilities.
So, just because a relationship was established by federal representatives (again, illegally in my view) a hundred years ago, with a private corporation, without the consent of the people or the states, somehow private citizens of the states, who were given no voice in the matter, are obligated for the debts or damages of a private corporation or conglomerate?...I don't think so.
As for placing a value on gold & silver it's whatever the market says it is...I believe it's 10:1, time will tell. The market is and has been correcting violently toward that for over a year now.
The contrarian in me says nobody I know owns/buys/discusses/understands gold, the Fed, wars for oil, or any important issues but instead wants to wear Lululemon clothing even though they don't jog or an iPad because the 3 computers they have just aren't cool enough for the neighbors.
When gold is discussed more than iPads, Google, Defacebook, Shitter (Twitter), then maybe I'll start thinking the masses are getting involved. When I see reports that more than 1% of investors owns any PMs at all then I'll start to think the bubble is starting to fill. I'd go until at least 4% if not more. Perhaps 8% this time will be the tipping point but who will allow 8% of the population to own real money? Who will sell for the paper they despised? Really are the SDRs going to be what gold owners are ready to exchange for? I doubt it.
You need to tell the contrarian in you to do some more research.
..
only 666,666 oz at ~1,500/oz. Nice round number.
Hook'em Hornz!
http://www.readtheticker.com/Pages/Blog1.aspx?65tf=128_gold-is-spooky-2011-01
1450 good very well be a immediate term top...watch out !
I will gladly buy your gold at 1450. Thanks for trolling...
Top callers have been comming and going for sometime now, this will be no exception...
I am the only topcalling troll around here. The others are just fakes, wanabees.
Another Government Sock Puppet shows up to troll us.
Shoo! No one here is stupid enough to take your 'advice'.
Seriously, you have nothing better to do than troll? That is how fucking pathetic your life is?
1450 top?? Hey thanks for the great info!!
FOOL
Sonny,
You've got to use the correct trollerism, or the effect is lost. Here, I've got cut and pasteworthy items for you to use in the future.
Please remember: Use only the one with the highest value that is below the current price.
1500 good very well be a immediate term top...watch out !
1525 good very well be a immediate term top...watch out !
1550 good very well be a immediate term top...watch out !
1575 good very well be a immediate term top...watch out !
1600 good very well be a immediate term top...watch out !
1625 good very well be a immediate term top...watch out !
1650 good very well be a immediate term top...watch out !
1675 good very well be a immediate term top...watch out !
There - that should keep you all set for the next week or two.
Keep at it - you'll get better!
Good on Ya U.T.
Proof that so called non-profit universities are just hedge funds with even better tax breaks.
Make UT pay its fair share of taxes and allow them to only profit from educating the younger generation instead turning their tuition money into commodities bet.
These days democrat elites and republican elites are one of the same....oligarchs with too much power over other people's lives.
respectfully, you might be interested to know that the seed money for the texas endowment came from a commodity called oil. and believe me the state of texas railroad commission has collected massive amounts of taxes on that oil.
Leftists always say democrats and republicans are the same.
Leftists always say left versus right is just a distraction.
Leftists are nowadays trying to obscure their socialist philosophy. I always know a leftist when he says left versus right is irrelevant.
Let the republicans have supermajorities and i believe this time the tea party will make sure the federal government is cut in half. I think that is relevant.
agree. 1/2 goobermint = good & relevant.
Another fucking party hack! Idiot.
if i were on the board of the endowment i would tell everybody the gold was being held in ny as a diversion. then quietly bring it home.
IF! (Ill} lay my own train tracks! Apostrophy deleted!
So convenient for the government to seize.
my take-away is this:
if the gold (hopefully we're talking actual bullion, not tungsten or paper) is anywhere near the shtadlan and hofjuden, UT has no gold. National emergency will be enacted and gold confiscated. The hofjuden, via their zionized US proxy are stealing 145t of gold from Libya now. UT is a bunch of schmucks if the gold (bullion) is not some place safe. And dont ask me where that might be as I dont think there is a safe place these days.
Aggies go short!!!
Raise up A&M!
http://www.youtube.com/watch?v=byYFrZtaOzo
I guess thats what you call buying the fucking dip...Thank goodness Goldman Top called it for em...
Any thoughts if this gold will sit in JPM new 'COMEX' vault and get use to help out with their cooked accounting books.
That's all it is - a COMEX vault. From Bloomberg:
"The endowment, which oversees funds held by the University of Texas System and Texas A&M University, has 6,643 bars of bullion, or 664,300 ounces, in a Comex-registered vault in New York owned by HSBC Holdings Plc, the London-based bank, according to a report distributed at yesterday’s meeting in Austin."
How does one "Take delivery" on something that is left in a vault far far away in a place like New York?
Not too smart. Just headlines, they didn't take delivery on jack, just the good faith of the folks in New York. Take delivery my ass!
"Faith" in the folks/institutions in NY is gone.
Think I'm joking?
Watch and see - NY is fucking history -- no prophylactic necessary.
Couldn't happen to a better bunch of liars, tyrants, and thieves.
VERY surprised no one has mentioned the connection to Shayne McGuire, of the Texas Teachers Retirement System, who not only was big on gold several years ago but wrote a book on it called "Buy Gold Now" along with a more recent second book called "Hard Money" .
Good call, ILB. I thought this sounded familiar.
The fund, whose $19.9 billion in assets... UT.
Bass made $500 million on the U.S. subprime-mortgage collapse.
Yes... trickle down works.
WTF, how many assets does a group or entity need? I hope these greedy bastards rot from the inside out. Judge one by their works.
Oh the humanity of the greedy few.
Giving money to a college is one of the stupidest things anyone can do with it.
When I got out of school I didn't have two bucks to rub together but the university from which I graduated was sending me solicitations to donate to a "Chancellor's Fund" they called it. They had a goal of raising $100 million. They had raised $140 million to that point. Oh, and they weren't sure just what the hell they were gonna do with all that swag.
If Bill Gates or Carlos Slim asked you to give him your money, you'd laugh at how ridiculous the request is. But it's done behind the banner of a college or university and saps fall for it.
+100
agreed; don't give these statist pirate ships a dime
no matter where I go, they call me and I tell them to get lost
its taken me 30 years of deprogramming to realize I'm not the property of the state
"Giving money to a college is one of the stupidest things anyone can do with it."
Agreed.
They can bullshit any politician into making an "investment" in education as there can never be an overallocation of "investment" in education...it's one of the financial paradoxes of our time.
Why, look at all these fine financial & social engineers the education system has brought us...where would we be without them? ;-)
"If Bill Gates or Carlos Slim asked you to give him your money, you'd laugh at how ridiculous the request is."
Well, as long as I got a piece of framed parchment to hang on the office wall it would all be worth it...ROTFL!
ILikeBoats - you are SO right. Credit where credit's due. Thank you!
What ever happened to physcial shortage?
What ever happened to physcial shortage?
What ever happened to physcial shortage?
silver market, not gold market ... yet. Wait till other funds start moving into the gold physical market... shortages will happen fast.
Remember reading back in the late 1990s how Bush and his wealthy friends hijacked the UT endowment and loosened the investing rules so that the money could get funneled into GWB's friends' companies. Naturally, a lot of money then was recycled back into GWB's campaign coffers. In short, I wouldn't trust anything that group controlling the UT endowment does with their money. I smell a rat.
UT is the largest insitutional landholder of oil-bearing property in the state of Texas. They have always had a vested interest in the price of oil...now, it seems they might have one in the price of gold as well.
maybe the mogambo is on the endowment investing board. when he visits, his wheee's blend in w/ the other yells just fine! oh---he crashes in nelson hunt's old bunker? ok, i'll go nightnight. now...
'In short, I wouldn't trust anything that group controlling the UT endowment does with their money.'
This problem was resolved more than a decade ago.
"In September 1999, the UT Board of Regents decided that the UTIMCO board would abide by the state's open meetings law, a vote that Common Cause of Texas called "a very good healthy step forward to restoring public confidence". (HC 9/4/99)"
Hook 'em horns
Calling the top on a newsweek cover on gold. This is red flag rising
double post
PepsiCo Says Cut U.S. Taxes on Foreign Profits to Boost Hiring
US says FU Pepsi
My snow-job sense is tingling. If it's reported as too good to be true; it is.
We're going to wake up one morning and discover the Confederate States have broken away again and have a currency backed by Gold.
That's "Hope and Change" I can believe in...
I think most of the west minus the left(ist) coast would join them. I also think the North/Socialist states will be rapidly depopulated as productive people moved south and west. Welfare types could move north and left. Would be a dream come true.
The Confederate States never rejoined the Union or even surrendered. A cease fire was signed and that was all. According to Lincoln the South never needed to rejoin the Union because it's impossable to do that (which is incorrect). The 13 Confederate States and Texas could simply announce they have had enough and simply declare independence once again. The only thing preventing that happening now is the US Dollar. When it crashes watch how fast the Confederate States and Texas take control of their own destiny. At first the liberal/progressive states will be very happy to see them go, until reality bites them in the ass.
In theory, any state can secede. There is nothing in the Constitution prohibiting it. The states had to agree by a two thirds majority to form the Federal government under the strict limitations of an agreed upon Constitution. In essence, the individual states were the principles in a self binding agreement to form the Federal government, not the other way around. Today, the Federal government is the principle and the states are just satellite servants to the Feds through direct and indirect force and means. For example, set your own speed limits and the Feds remove all your highway money. So, the Constitution is indirectly abrogated through the power of money and the individual states' dependence on Federal monetary benificence.
I would be really happy if a lot of the blue states had seceded when G.Bush II was reelected (as some liberal opined). Would've knocked out 3/4 of our national debt and the source of most of the BS collectivist ideology.
However, when the entire collectivist-redistributionist state collapses it may get rethought. If the South (or anywhere else) seceded again without the racial overtones it would probably be popular at least to those who believe in freedom, self-reliance and essentially being the captain of your own ship. I say that socialism-statism-collectivism is for cowards and aspiring autocrats. Those are the only groups that do well, the dependent/welfare class and the political class. I would head not for just a conservative state but a libertarian one. Ron Paul for citizen-in-chief, lol?
What we have now to do, though is to vote and be active as best we can with the candidates that present themselves. At the same time, you preach the gospel of liberty as do Ron and Rand Paul and convert as many minds as possible, win, lose or draw, good times or bad, bull or bear market, etc.
Russian economist Igor Panarin said that there is a strong possibility that the United States will break into six pieces. He was ridiculed at that time.
http://www.youtube.com/watch?v=Jxi-DB3PiLQ
Better move that Au south of the Mason-Dixon...
gold/sivler is turning into a voting machine... the end of bubbles bubble
Holy crap this is big! This turns alot of heads and makes
holding of gold by many institutions a must. The ammount of
pension money out there with zero gold in their holdings, if they
only took a 1% position that would send the price to $2500.
When Eric Sprott went shopping he moved the price of silver up $ 5.00 .Any idea what pulling this amount of Physical Gold out of the market will do to the price ?
It is an interesting thought. The amount of gold available is not static. I watched a TV show on a mine in Nevada that produces about a million ounces a year. That seem like a lot until you realize it would take 300 years to give every American one ounce. Value should stay very high.
I thought my gold seemed shinier today.
This just in...melt value of a pre-1964 quarter is now $7.78. I've found some nice irony in my piggy bank.
Texas gold stored in NYC
that doesn't pass the smell test Tyler
he who has the gold makes the rules; with the emphasis on has
seems like all the rumors of Russian gold disappearing into the night a few years ago comes to mind
wonder if JPig is the storage custodian?
better consult with the talking bears on that one
Hot diggidy fucking dog...!!!
I'm gonna be ritch........
Fucking A.....!!!!
This is a watershed moment. Us little guys in the trenches finally see the first horse of the calvary on the horizon!!
http://www.youtube.com/watch?v=sE1huPYerp0&feature=related
give em hell.
"The King has no clothes!"
I only took a drunken nap and the worm has turned,
Everyone who is anyone will get wind of this in the next 2 weeks.
Will you keep your METAL in a vault in NYC?
A good place in Texas their is, the Alamo.
Remember the Alamo II? The tide just turned my brothers and sisters.
A real fuck yeah moment.
Is that alot of gold? Yes. In context for UT? Not really. When the bond market looks like shit and stocks are topping where can you invest a billion dollars? The investment universe is small for so much money. It seems like a fairly natural allocation to me. Even if gold falls to $1000...it's a fairly small percentage loss for the dollar protection that you get. I don't know what storage costs are but there's gotta be some economies of scale.
Beg pardon, but did you miss the part about 'physical' delivery?
BTW, given your view of a 'fairly small percentage loss', I've got a couple of good deals for you...
I'm an Aggie, and I support this development 100%.
That's a Biblical statement. The game must be on.
Dogs and cats living together! Mass hysteria!!!
Give me a "T" for TEXAS.
Eat shit Jeffery Christian.
So a 5% asset allocation to physical gold, seems reasonable.
Not a tipping point.
That said, I agree with their thesis.
Except the typical asset allocation to gold is 0%.
Which suggests it's starting to hit mainstream.
Sorry, anymore if it's not in your possession you don't own. Some are getting close to figuring this out but they're not quite there yet.
One billion dollars worth of Gold at today's spot price of $1487 is about 672,494 ounces.
If you had a cube of gold that big, it would be about 10 yards on each side and would weigh about 42,030 pounds.
They should haul it out to the middle of the field during the Cotton Bowl, and show everybody what a billion dollars in gold looks like.
Now that would be a halftime show I'd like to see.
It will be a $4 billion cube by the Cotton Bowl...
I call bull shit on this:
density of gold = 19.3 gr/cu.cm
1 troy oz = 31.1 grams
672,494 toz = 20914563 grams
20914563 /19.3 = 1083656 cu.cm = 1.08 cu.meter
that looks like a cube of 1.2 yards per side, not 10 yards. Somebody needs to go back to school and review basic math.
If everybody is thinking the same thing, then no one is thinking...
Nice one Gen. Patton....
hmmmm...if Texas is buying, Alabama's selling?
they finally found a legal recruiting angle?
OMG! is this the top??? LOL! 2 years from now we'll all be looking back: well! that Texas gold play! that was the end of that!
will the longhorns say how they purchased this? would you?
here's the crimex silver deliveries thru the 13th:
DJ Comex Silver Delivery Intentions Breakdown - Apr 13
do your own looking, too. reliable info is worth the effort. i have no personal knowledge whether this info is accurate...
I have the feeling UofT is about to pass Harvard in assets unless Harvard does the same.
woo-hoo! NOW we're having fun!
On the surface, it LOOKED like the TEXAS "old south" (read, reactionaries, plantation lords & "resource extraction barons" in Michael Lind's terminology) Big Money was behind the push to put Bush & Cheney in the White House - the Enron Ken Lays, Wileys, and other Texas oil money; for example, the Gramm-Leach-Bliley & Commodities Futures 'Modernization' Act DEREGULATION bills had TEXANS Phil Gramm, Jim Leach, and Thomas Bliley's names on them.
But that was all FACADE. the BIG money was of course from Wall St and the member/owner Fed fiat banksters - the GS/JPM Rubinites who were the power-behind-the-throne for Greenspan (and now the bernank). While counter-intuitive, the proof is everywhere you look: The Texas oil men were Arab-philes (US oil men BUILT those Arab oil fields) ... the men running the Bush-Cheney White House were Neo-Con Arab-phobes, people like wolfo & libby & chertoff & mukasey (etc.)
So the UT boys were partners in crime with the NY /Wall St ("multi-national") stolen election 2000, tax-cuts for rich, 9-11 whitewash, DEREGULATION Neo-Cons
(Deregulation = LICENSE TO LOOT financial markets, a verbatim REPEAT of the S&L "deregulation" > bust > taxpayer extorted bailouts > economic recession" of the late 1980s under Bush Sr.)
and of course the reactionary Texans supported lies-to-war & financial crimes cover-up leading to/during/after Iraq invasion 2003.
BUT! that was then, This is now.
The Harvard, Yale, GS, JPM boys don't really have many bones left to throw the UT boys & Texas barons lately - what the going to do, hand over a few billion Bernanke dollars? Tell 'em to buy Appl? Give em another billon dollar "defense" contract?
If you're a big investor OUTSIDE the GS, JPM "free Bernak dollars for our pals" innner circle Fed cabal, you are LOSING money* just as fast at the little people.
*(unless perfectly positioned in commodities upon which people are dependent, but with US oil stocks going down, and US economy contracting, even that's not as easy as making money the past decade was. )
I guess the U of T will discover if they own their gold when they try and move it from Comex. Chances are they are schmucks like India with its 'IMF' gold, sitting in someone else's vault. Probably they are just subsidizing HSBC's gold short.
"The endowment, which oversees funds held by the University of Texas System and Texas A&M University, has 6,643 bars of bullion, or 664,300 ounces, in a Comex-registered vault in New York owned by HSBC Holdings Plc, the London-based bank, according to a report distributed at the meeting in Austin"
I have found Texans to be exceedingly good at poker...they will call a bluff...but I always land on the side of Aggies...the tea sippers at UT, not so much.
We'll see.
It's UT or Texas, not UofT.
/Unamused Texas Ex is unamused
Right sorry. UT has no gold.
I was actually responding to the article itself, not to your comment. I had not even read the 2nd page of comments at the time I posted. Though I guess it can apply to your post as well. :mad.jpg:
You also might want to try loosening your tin foil hat a bit.
I believe the U.T. system has at least 20 billion in assets, but i am too lazy to look up the exact number.
5 percent in gold is mainstream and considered conventional and non-fringy. It is well accepted that efficient conventional portfolios can have up to five percent gold.
This doesnt indicate repudiation of anything.
5% paper gold maybe. 5% physical gold different story.
Eric Sprott, ultimate metals insider since 2001, needs months and all his contacts to finally get his metal. The univeristy Hedgie writes a check and figures he's got a billion bucks worth of gold. Im sure he's got a very long certificate in legalese, which is nothing more than a glorified I.O.U. from the bank with the biggest gold short.
Like Madoff's clients, the UofT will make some nice interest; as they lease their paper gold to HSBC. Like Madoff's clients, they will get shoulder shrugging and extravagant explanations when they request the return of their principal.
very good and agreed. they can't truly buy a billion dollars of gold, perhaps over any timeframe. and if they do, the gold is already owned and leased by a 'trustworthy' custodian 100 times over.
so this is a cool story and all, but its far from the real story in the gold market!
wrong. troll alert. people who know how to buy gold can buy gold. sorry if you find that less fun that whatever you are pretending. bummer?
HSBC is a legit custodian. and this could be temporary, since when you do buy $1 Bn. gold, you are gonna do it thru an experienced repository/depostory/suppository, not down on the docks.
HSBC's gold storage business was re-vamped a year ago last Thanksgiving, thru last summer. only institutional clients from now on. they gave a lotta people notices to get their gold out and there were reports of armored trucks hauling gold outa nyc in late '09. HSBC would only avail its gold storage to instituional clients.
there were no stories of missing gold or people getting paid off in FRNs. no paper gold products. some bankers are trustworthy? some gold storage outfits are very professional and accurate?
this is a real story; at least it doesn't need to be wrong, folks. when tyler put up a piece about the morgue, recently, it also showed the crimex physical for HSBC, and it was an enormous # compared to jpmorgue's!
that said, we also don't know if it was even a $Bn. but i think whatever it is, no problem being in this vault, free & clear, properly stored.
i'm taking the HSBC idea at face value. i thought also: maybe jpmorgue? dimon & co have come out with: put yer gold in our vault(s) and you can use it as collateral in trading.
if it weren't for real gold, there wouldn't be fool's gold.
The pucker factor is off the charts and it's not just because of used suppositories.
Defcon 3 or 2?
second all the comments about the particulars of the vault. if its sitting in a JPM hole, they just bought em a whole load of collateral to sell 50 more times on the paper market, presuming this gold isn't owned already (unlikely).
From Bloomberg: The endowment, which oversees funds held by the University of Texas System and Texas A&M University, has 6,643 bars of bullion, or 664,300 ounces, in a Comex-registered vault in New York owned by HSBC Holdings Plc, the London-based bank, according to a report distributed at yesterday’s meeting in Austin.
brilliant! musical chairs for these guys, but with no chairs. headline should read: A&M University enters gold leasing business.
No way this ponzi collapses unless people demand delivery and test for purity. The shell game continues.
First of all the gold plating on the bars is only about .003 - .005 (thousands of an inch) thick. So you will have to redo the math to calculate the actual gold involed here - the rest is tungsten son - tungsten.
OK, I'm not a real big fan of Nostradamus. Let me huff enough ether and I'll say some pretty trippy stuff too.
C8 Q28:
http://www.nostradamus.org/q_en_c8.php
Still, that one scares me.
Yep, pretty scary stuff...
Revelations 18 gives an account of the fall of modern day Babylon. Verse 23 has always stood out to me.
23 And the light of a candle shall shine no more at all in thee; and the voice of the bridegroom and of the bride shall be heard no more at all in thee: for thy merchants were the great men of the earth; for by thy sorceries were all nations deceived.
The merchants owned the banks in John's time, so this would mean banks and/or corporations as I understand it. Now insert modern day terms such as financial derivitives or cooking the books for sorceries. The MBS fraud and housing collapse certainly fooled the world.
UT= University of Tungsten
DEMAND PHYSICAL GOLD you morons!
And store it in your own facility. Or at very least go with the Sprout physical gold fund, which is better than any physical gold managed for you by ANY corporation in NY.
The predators who are storing your gold have ALREADY leased it out 100 times over, which is depressing the price of gold.
WAKE UP morons at UT. You have ZERO gold. You own ZERO gold.
You must get the physical gold in your own paws, and keep it there!
would love to see something like this happen through sprott, that could be a game changer. sorry mr sprott, this item (1 billion dollar gold stash) is currently unavailable for delivery at this time. please check back later.
I dunno if Kass is a moron, or an HSBC lackey. Neither is of any benefit to UT
i know that you and bow tie are ignorant asswipe fukhead trolls!
no buddy, you are equally as troll-worthy with the 'HSBC is a perfectly legitimate gold custodian' argument. the bottom line is unless they take full delivery outside of the COMEX system and assay every ounce, it is pure speculation whether their gold is a legitimate investment or not. sure this is a big story from a psychological perspective, but in terms of a physical purchase, we are talking about 1 billion dollars of gold. you can't buy 1 billion dollars of physical gold just like that, not without it being intermingled in the CB/BB gold leasing ponzi scheme.
i didn't see any indication of COMEX in the article. why do you assume this has anything to do with COMEX? i may have missed something; happens all the time.
i think the facts we have are that the longhorns bought this big load of gold & that it is stored @ HSBC. there's no reason that's not the whole story, either.
HSBC is a "comex rgistered vault"; the article says: "...if they are getting "delivery" in a Comex vault in New York,...". if. still, can't they "clear" the comex vault if they are "in" it? they just possess and move the gold to a different room. the gold is not hypothecated. it is gold bullion.
i guess this sounds like science fiction to people.
there's nothing impossible about this PM at any level.
i know that gold can be hypothecated and securitized and delivery-dated, and leased.
again. some people may know how to do this. that's all, really.
if you own PMs, you know you do not need to get involved in anything but physical coins, for example. things are for sale. people buy them. you got a Bn in cash? you can buy $1Bn in gold. really.
my point is that you can much, much more easily buy 1 billion in gold within 'the system'. doesn't seem like any problems have cropped up for these guys yet. and a little guy buying coins and small bars is in an area of the physical market where a different set of dynamics apply. this is the equivalent of a small central bank sized transaction. try to take that much gold completely out of vaults controlled by our friendly bullion bankers, and problems will soon arise!
people have oft reported issues getting delivery of much smaller quantities from comex futures. lots of signs through recent history point to a total house of cards in the physical gold market. a real conspiracy and one of the deepest. it's not impossible that they own that much unencumbered gold, i genuinely don't know. but my bet is that if they tried to remove it entirely, there would suddenly be a heck of a lot of problems. if and when the 1bn of gold it is shown to have been 100% delivered to a private vault, i'll pause for thought.
whad you expect us to do.
atx bitchez.
Aggies go short!!!
Raise up A&M!
http://www.youtube.com/watch?v=byYFrZtaOzo
I don't know, it's hardly a vote of confidence in the current management, but $987M is only 5% of the $19.9B endowment, in line with what people have been saying for quite some time is an appropriate allocation for a conservatively managed portfolio.
Now, if they were to go to, say, 15%...
What you say is true as far as allocation goes, it's the request to hold it physically that is the outlier, just like they may own $1b in treasuries but don't ask for the physical certificates (I know they're only book entry now but you get the point). This is a very interesting call on the part of the endowment as they now must pay stotage and insurance which they wouldn't do for no good reason.
It's in New York? Start asking to see it and move to TX, we'll see another "terrorist" event and buildings storing the gold at free-fall due to fire.
That is right :)
Check out Dr. Judy Wood's analysis.
They fleeced that vault overnight, tons were stolen and nobody knew anything? I know exactly what your talking about. I mean, there had to be trucks in and out a couple times? IMHO.
The Bad Guy.
thats an awful lot of tungsten
plenty of it out there
http://www.indexmundi.com/minerals/?product=tungsten&graph=production
I like the story on its face but if those bars is still in New York, I question the whole thing. I will 'believe' more when the bars are moved to TX.
Holding my physical in my hands while reading this is all the more comforting, just IMO.
Cash is trash
Tyler said:
Factor in also that only a fraction of total physical gold will be available as flow to satisfy this paper, with the bulk remaining as off-market stock in strong hands, which only strengthen further as the perceived value rises, and we start to grasp the magnitude of the pending physical/paper gold decoupling.
"and we start to grasp the magnitude of the pending physical/paper gold decoupling."
I believe this to be a precursor to a much bigger realization, and not that of just gold vs. fiat, but virtual vs. physical in ALL things. This is all a parable for our failure to respect the physical world. Perpetual growth (on a finite planet), fiat, oh the hubris...
Yup. Starting with ourselves.
Of course you do see that the inequity of our current monetary system is the root of this? We have no respect because we don't get a fair deal from the get-go. Some simple changes could have ridiculously large effects of a very positive nature.
Blythe don't mess with TX bitch!
And the BRICS bail just simultaneously with texas.
http://articles.economictimes.indiatimes.com/2011-04-14/news/29417583_1_...
Mr. Durden, I don't know if you are reading this. Regarding the "updated" articles, the updates should be marked in a way that made easy to check what was updated. Some kind of mark should be used in the updated parts. I'm posting my comment at this thread because this is the last one you created, and the chances you are reading it are better.
It's starting, and he wouldn't be doing this unless he sees something that we don't.
Let's see what's in the survival guide...
gold... check...
land... check...
guns... hmm texas. check.
Looks like UofTX is pretty much good to go!
UTexas football program has the largest gross revenues of any fb program in the US. LSU is second...Will LSU follow suit?
In fact almost all of the South East Conference teams garner in a lot of football revenue. College fb is very big in the SE Conference. Will UFlorida, Bama, UGeorgia, Ole Miss, etc, follow the lead of UTexas?
My gypsy grandma has more gold than Fort Knox, and she lives in a caravan.
texas gold in a new york vault is not physical delivery in the sense that is meaningful to anyone.
OT: Fallout from Fukushima now detected [at a very low level......so far] in northern Australia! So much for the oligarchs moving to safety in the southern hemisphere. :)
Japan radiation detected in NT
http://www.independent.co.uk/news/world/australasia/aborigines-to-block-...
...the Mirarr Aboriginal people of Australia's Northern Territory, ... are determined to limit uranium mining on their land despite the promise of vast riches.
The Mirarr are the traditional owners of land where uranium has been mined for more than 30 years...
The senior traditional elder in the area, Yvonne Margarula, (said)"Given the long history between Japanese nuclear companies and Australian uranium miners, it is likely that the radiation problems at Fukushima are, at least in part, being fuelled by uranium derived from our traditional lands." Ms Margarula also told Mr Ban that events in Japan had strengthened the Mirarr's resolve to oppose work at a second mine, named Jabiluka – the world's largest known undeveloped uranium deposit. Instead, they want to see Jabiluka incorporated into Kakadu, the World Heritage-listed national park where Ranger is also located.
I just want to throw in a good ol' Texas "Hot DAMN!" in here for emphasis. And also add, THIS IS JUST ONE ENDOWMENT, wait till it becomes "popular" for large funds to have 5% of their portfolio in gold bullion. Shit, this is gonna be fun :)
Kyle Bass is a savy guy. The U Texas needs Kyle's input on hiring a new head coach for their football team.
Who do you sell your gold to when it's $5,000/oz?
hedge funds, JPM, VAMPIRE SQUID, university endowments, governments,
The very same people you buy it from at $1,486 an ounce.
As stated above, exactly who you purchased it from - or the same party that you'd sell it to at 1486.
Are you serious in that this question was so mystifying to you that you posted it twice in separate areas of the same thread?
If not, you need to amp up the pithiness - this was weak.