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University Of Texas Fund CEO Shares His Views On Gold, Explains Why He Took Delivery Of $1 Billion In The Precious Metal

Tyler Durden's picture




 

Over the weekend, University of Texas made headlines after disclosing it was the first major institution to take delivery of $1 billion in gold, although still keeping it in the Comex system. Today, the CEO of the management company Bruce Zimmerman was on Strategy Session providing the rationale for his action to David Faber. First some prehistory: "We began buying gold in September of '09 at about $950 an ounce. Our average price is at about $1,150. We've invested around $750 million in gold over that twelve months and it now has a value around $1 billion." On what Texas thinks of gold (no surprise here): "The role gold plays in our portfolio is as a hedge against currencies. The concern is that we have excess monetary and fiscal stimulus. I noted
a couple of days ago, i think there was a story out about Bernanke
mentioning that while they may not increase quantitative easing, they
may not necessarily reduce their exposure either. So i think that may be
a signal that will continue to have a good deal of monetary stimulus
.
We read every day what's going on in DC and across the states. We'll see
what fiscal policies look like. It remains a concern for us." As to the specific reason for demanding delivery: "We had gotten to a size and our thought was that we probably will
have our position for a longer as opposed to shorter term, although we
could sell at any time. But rather than continuously roll the futures
contracts, it became easier and more economical for us to take
possession of the bullion." So how long before many if not all other public fund managers decide the same logic should apply to them as well?

As to the question of where UofT is keeping their gold: "in an undisclosed location, underground in New York." Somewhere just off Bryant Park perhaps.

Full clip:

 

 

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Wed, 04/20/2011 - 15:13 | 1189433 TruthInSunshine
TruthInSunshine's picture

A big F**CK YOU to Helicopter Ben.

The Bernank's greatest quotes (thus far); be afraid; be very afraid:

 

  • (November 15, 2005) "With respect to their safety, derivatives, for the most part, are traded among very sophisticated financial institutions and individuals who have considerable incentive to understand them and to use them properly."
  • (July, 2005) "We’ve never had a decline in house prices on a nationwide basis. So, what I think what is more likely is that house prices will slow, maybe stabilize, might slow consumption spending a bit. I don’t think it’s gonna drive the economy too far from its full employment path, though."
  • (October 31, 2007) "It is not the responsibility of the Federal Reserve – nor would it be appropriate – to protect lenders and investors from the consequences of their financial decisions."
  • (November 21, 2002) "The U.S. government has a technology, called a printing press (or today, its electronic equivalent), that allows it to produce as many U.S. dollars as it wishes at no cost."
  • "The money supply is not changing in any significant way. What we’re doing is lowering interest rates by buying Treasury securities."
  • "One myth that’s out there is that what we’re doing is printing money. We’re not printing money."
  • (When asked directly during a congressional hearing if the Federal Reserve would monetize U.S. government debt) "The Federal Reserve will not monetize the debt."
Wed, 04/20/2011 - 15:33 | 1189547 redpill
redpill's picture

OT: Papaconstantinou goes full retard, claims Greek debt is "absolutely sustainable" - lol

http://finance.yahoo.com/news/Greece-says-debt-absolutely-apf-1554110454...

Wed, 04/20/2011 - 15:59 | 1189673 BrobamaReds
BrobamaReds's picture

I just demanded physical delivery of all the pussy I'm supposedly long...we'll see.

Wed, 04/20/2011 - 16:09 | 1189734 faithfulwatchman
faithfulwatchman's picture

Sounds like UofT did the "Texas Two-Step" all over thr Fed. Chair's head... So much for Ben's silly serenades...

Wed, 04/20/2011 - 17:11 | 1189991 max2205
max2205's picture

Please divide $1B by $1,500 per oz = ?

666,666.67 ozs. Omg!!!

Wed, 04/20/2011 - 17:44 | 1190097 Auricle of Omaha
Auricle of Omaha's picture

It's even more than that since he said that have an average price of $1150/oz.

Wed, 04/20/2011 - 19:49 | 1190489 BlackholeDivestment
BlackholeDivestment's picture

Is that the amount http://bible.cc/1_kings/10-14.htm they have in a basement vault at the new New York Solomon's Building (WTC 7 not hit by any plane on 911 but was blown up by the Larry Silverstein tongued devil who called up the insurance company that charged for it) replacement? or their New York Citi Bank 666 address? or is it some other Bank Atlantic Iron Maiden they ''put'' their collective self fulfilling prophetic golden 6's in? http://www.youtube.com/watch?v=6iaKgEM3gXE 

What a hedge attempt against zero but, it will not keep out http://www.youtube.com/watch?v=h2qy2wrwY-Q the Lion of Babylon http://www.youtube.com/watch?v=lr9b1kJDLrE or keep the drunken whore in her saddle. 

The Little Whore House in Texas can ware Barry's pimping golden Lion's jacket but, that ain't helping the Detroit Lions sell marked up T-shirts made in China and marked down tickets printed by the Fed, and it sure as hell ain't gonna prevent the whirlwind from sucking the life out of labor like some second born from Shanghai's conceived in the back seat of The Detroit Wheels. http://www.youtube.com/watch?v=ftXxKfLCOeU

Labor pangs  http://bible.cc/mark/13-8.htm ...in the back of the Government Motors Rockin Roll car http://www.youtube.com/watch?v=y2YJG1zu_uw ain't gonna deliver golden Bitchez. This Texas Whore is fallen from the same branches of the same barren tree  http://www.youtube.com/watch?v=rylbj33b8qA&feature=related Does he not represent the fangs of the drunken golden monkey; in the back seat of the GM car driven by the private non union worker, watching the monkey man in the rear veiw mirror devour all the fur and fermented fruit of their future that is fallen ...is fallen http://bible.cc/revelation/14-8.htm down the drain http://www.youtube.com/watch?v=bm7arWC7Dlk into the black hole (stored in the communist union built vault) now on sale at the Great Wal Mart of China, where the driver is headed? Is the driver Thelma or Louis? you know, the one that shot the rapist.

Wed, 04/20/2011 - 21:34 | 1190764 TruthInSunshine
TruthInSunshine's picture

OT (sorry):

Steve Wynn says he's using Chinese Casino revenue to offset losses in U.S. and that American Middle Class is Being Wiped Out by Governmental/Federal Reserve Policy:

http://video.foxbusiness.com/v/4653190/steve-wynn-on-the-state-of-the-economy/?playlist_id=87247

Wed, 04/20/2011 - 15:14 | 1189437 Northeaster
Northeaster's picture

If I read a different story correctly, Kyle Bass sits on the endowment board and may of had some influence in this decision.

Wed, 04/20/2011 - 15:40 | 1189578 ZeroPower
ZeroPower's picture

This guys is showing the world how its done in Texas. Everything's BIG in Texas. Including the gold bullion holdings of a college endowment. 

Any bets on who's next to declare a large physical stash?

Wed, 04/20/2011 - 16:05 | 1189699 Pladizow
Pladizow's picture

I think both Harvard and Nothwestern Mutual Life did it some time ago?

Wed, 04/20/2011 - 17:24 | 1190044 max2205
max2205's picture

Think of the interest they will lose out on when interest rates go up.

Wed, 04/20/2011 - 17:58 | 1190154 Eternal Student
Eternal Student's picture

Yes, very much:

"The decision to turn the fund’s investment into gold bars was influenced by Kyle Bass"

http://www.bloomberg.com/news/2011-04-16/texas-university-takes-cue-from...

But note well the original version,  dated 4-15, which had the following comments stripped out:

"Open interest in gold futures and options traded on the Comex typically exceeds supplies held in its warehouses. If the holders of just 5 percent of those contracts opted to take delivery of the metal, there wouldn’t be enough to cover the demand, Bass said.

“If you own a paper contract where they can only deliver you 10 cents on the dollar or less, you should probably convert it to physical,” said Bass"

http://www.bloomberg.com/news/2011-04-15/texas-university-endowment-hold...

Wed, 04/20/2011 - 15:13 | 1189439 Commander Cody
Commander Cody's picture

Has anyone representing the Fund actually confirmed the gold is where it is supposed to be?  Hands on?  Serial numbers verified?  Assayed?  If not, then the notion of delivery is meaningless.

Wed, 04/20/2011 - 15:24 | 1189491 bingaling
bingaling's picture

They get shown the gold just like every other billion dollar gold holder gets shown the same gold . How many times is the comex allowed to sell the same gold again?

Wed, 04/20/2011 - 15:43 | 1189588 Josh Randall
Josh Randall's picture

I'm sure The billionaire Gold tour swings by the same bank vault every couple of days or so, because there only is one vault

Wed, 04/20/2011 - 16:42 | 1189873 Auricle of Omaha
Auricle of Omaha's picture

It's probably a big one mile round-a-bout where they take the billionaires on golf cart rides past each gate that looks into the same vault of gold.

Wed, 04/20/2011 - 20:49 | 1190636 Papasmurf
Papasmurf's picture

They travel to Madme Tussauds.  The gold is all wax, as are the guards.  Why the fuck would this money manager buy 1B in gold and not take delivery?  That defeats the purpose of holding gold. Why is he public about this holding?  This story stinks to high heaven.

Wed, 04/20/2011 - 15:30 | 1189515 Eternal Student
Eternal Student's picture

I haven't heard anything reported directly from the fund. But this is what Harvey Organ had to say yesterday:

http://www.blogger.com/comment.g?blogID=4795619781557835773&postID=26019...

"We now have confirmation that the Texas Endowment fund tendered his GLD paper for real physical gold and store this gold at a registered HSBC vault.

I am 100% sure that this gold is allocated and secure."

Wed, 04/20/2011 - 16:07 | 1189719 Pladizow
Pladizow's picture

With Kyle Bass on the board and has been mentioned as the instigator, I have to assume its allocated - or why even bother?

Wed, 04/20/2011 - 16:10 | 1189740 NotApplicable
NotApplicable's picture

I wonder why Harvey thinks UT redeemed baskets of GLD, when Zimmerman himself states they took delivery on futures instead of rolling them?

Besides, only "authorized participants" are allowed to create/redeem baskets, which I thought was limited to the bullion banks.

Thu, 04/21/2011 - 02:44 | 1191471 Hook Line and S...
Hook Line and Sphincter's picture

If you look at this months activity, 1 billion never went into the COMEX gold dealer, and 1 billion surely didn't go out.

Fat boy Zim probably got a bj for his lying mouth to utter such nonsense.

Wed, 04/20/2011 - 15:31 | 1189533 jus_lite_reading
jus_lite_reading's picture

They should prepare for the end of the world

Wed, 04/20/2011 - 17:41 | 1190096 Klaus Daimler
Klaus Daimler's picture

What - losing their QB en route to a 48-0 pasting by A&M?

The horror...  The horror.

Wed, 04/20/2011 - 16:21 | 1189796 yabyum
yabyum's picture

You got that right commander: If you can't take off your clothes and rub your privates on it, you don't own it.

Wed, 04/20/2011 - 15:13 | 1189441 redpill
redpill's picture

Get that shit out of NY and to TX stat, BZ!

Wed, 04/20/2011 - 15:17 | 1189448 Commander Cody
Commander Cody's picture

+1

Wed, 04/20/2011 - 15:16 | 1189444 Yohimbo
Yohimbo's picture

God Bless Texas

Wed, 04/20/2011 - 15:14 | 1189449 tmosley
tmosley's picture

Hope they have some postdocs guarding it, or else the custodian is liable to shaft them when it comes time to bring it home to Texas.

Wed, 04/20/2011 - 16:09 | 1189728 Pladizow
Pladizow's picture

They will just fly another plane into the building and claimed it "melted away?"

Wed, 04/20/2011 - 15:17 | 1189455 Dr. No
Dr. No's picture

I still cant believe they hike tuition high enough to create large pension funds which can afford to diversify into $1B in gold holdings.  Cut a few fees already!

 

EDIT: and it these universities which preach Keynsian economic policies.

Wed, 04/20/2011 - 16:13 | 1189745 Cachao
Cachao's picture

What percentage of tuition goes into a university endowment fund?  Got details?  I'd be curious to see.

Wed, 04/20/2011 - 16:48 | 1189892 Ergo
Ergo's picture

Tuition at the University of Texas is very low nationally.  http://www.utexas.edu/tuition/  Twelve years ago, it cost less for me to attend law school there, than if I had stayed home in Pennsylvania and gone to community college. 

 

UT and A&M come from oil wealth.  These schools were founded by land grants.  But in time, greedy politicians took the land, and switched it for countless acres of trash land that no one wanted - which turned out to be dripping with oil.  And of course, their alumni have done crazy well over the last 40 years as Texas became an industrial and energy hub of the world.

Wed, 04/20/2011 - 15:18 | 1189456 Revolution_star...
Revolution_starts_now's picture

What no comments? Ok I'll go first. I thinkk this bull market has 9 more years to go, so it's getting ahead of it's self. This kind of crowd normally shows up with a "bag in hand" at this stage. I can see later this year the fed "getting religion" and letting the market drop and going after gold and silver. Both should fall back to the uptrend line, then you can start adding. I wouldn't buy it here. But then I bought enough at lower prices that I am more worried about the government taking it rather than the price dropping.

If Ben wants to keep printing he will have throw the dollar a bone or risk his "all in" bets.

 

Wed, 04/20/2011 - 15:19 | 1189470 Revolution_star...
Revolution_starts_now's picture

I knew I wouldn't get one posted before everyone showed up.

Wed, 04/20/2011 - 15:18 | 1189457 WALLST8MY8BALL
WALLST8MY8BALL's picture

So how long before many if not all other public fund managers decide the same logic should apply to them as well?  Howabout how long it will take for CRIMEX to show that the vault is empty?

Wed, 04/20/2011 - 16:13 | 1189741 barkster
barkster's picture

the vault is not empty - plenty of tungsten there...

 

so the fed, jpm and their other little cronies just need to cause a disruption in the tungsten market, drive the price of tunsten to 1500 usd per ounce, then everything will be fine.

 

btw, i suspect that the contents of fort knox were sold off through the bullion banks to certain banking "interests" in europe (one reason for the gold suppression was to allow them to pick it up on the cheap) and that all is now safely tucked away in underground vaults there. when gold is remonetized, they are even filthier rich based on what was robbed from the citizens of this and other countries. the lesson here is trust no one else with your assets, particularly bankers or government.

Wed, 04/20/2011 - 15:19 | 1189458 speculator
speculator's picture

Why does it cost a million a year to store something that only takes up a cubic meter of space? Just rent a big safe deposit box in a Swiss bank for $5000/yr. You can't get much safer than that - more cost means more complexity and room for error.

Wed, 04/20/2011 - 15:21 | 1189468 Dr. No
Dr. No's picture

Just put it in the UT library.  No one goes in there anyway.

Wed, 04/20/2011 - 15:54 | 1189655 suldog
suldog's picture

Plus, why would you ever store any precious metal so close to those motherf*kers.

Wed, 04/20/2011 - 20:49 | 1190643 Papasmurf
Papasmurf's picture

You would do that if you are one of the motherf*kers.

Wed, 04/20/2011 - 17:45 | 1190103 Urban Redneck
Urban Redneck's picture

The insurance alone would be over $1M per year, even once in a bank box, and insurance probably wouldn't cover a flight to Switzerland (Since specific planes with known large quantities of bullion have a funny habit of falling out the sky enroute to Switzerland)  

Insurance Transportation Storage (& Fiduciary Responsibility)

Making the purchase is the easy part.  However, there needs to be a properly developed business case to incur the expense of removing gold from the "system."  $1B is actually not a large enough volume to justify the expense of building a proper solution from scratch.  If UT wants to store the gold in Texas, they have to find a suitable location within the state and identify and document the risks they seek to minimize or eliminate by doing so.  They must also quantify that the cost of the measures taken is justifiable against the risks of the alternative of leaving the gold in its present location.

It can be done, but skipping ahead a few steps, a legislative framework would have to developed in Texas, to build out the infrastructure and share the implementation and operating costs.  Simply shipping the gold to the back corner of a local TBTF bank's vault is extremely expensive and doesn't mitigate all identified risks while introducing new risks and costs.

 

Wed, 04/20/2011 - 18:45 | 1190324 DaveyJones
DaveyJones's picture

Well said

Wed, 04/20/2011 - 15:19 | 1189460 MrPike
MrPike's picture

Texas storing their gold in New York.....might want to re-evaluate before seccession. 

Thu, 04/21/2011 - 07:38 | 1191732 earnulf
earnulf's picture

NEW YORK CITY?........Get a rope.

Wed, 04/20/2011 - 15:17 | 1189462 MrBoompi
MrBoompi's picture

If the gold is "still in the COMEX system" am I wrong for thinking they really HAVEN'T taken delivery at all?

Wed, 04/20/2011 - 15:37 | 1189555 MachoMan
MachoMan's picture

Nope...  very fair assessment.  In fact, until it is in their possession, I would say they have exchanged paper for nothing. 

I'm also curious about why GLD and why public spectacle?  If you wanted to assure everyone that they could cash out and get gold, you make a public showing...  but, you have to be sure to convince them to keep the gold in your vault...  If so, mission accomplished.

Wed, 04/20/2011 - 15:39 | 1189575 NotApplicable
NotApplicable's picture

How could one ever tell? Those are only words, after all (based upon other words which make up a promise). I know I wouldn't consider anything in a NYC vault to be in my possession.

Then again, as small as a step as this appears, it is still a giant step for such a mainstream entity. If they would've taken delivery and actually removed the gold from the Comex vault, they would've been derided and labeled as terroristic monetary cranks, hell-bent on destroying America.

Wed, 04/20/2011 - 16:05 | 1189691 NotApplicable
NotApplicable's picture

WTF is up with all junks in this branch of this thread?

Somebody afraid of something bad about the Crimex being stated?

Wed, 04/20/2011 - 16:44 | 1189879 barkster
barkster's picture

junks have gotten out of control on this board - too bad we cannot see who is doing the junking....

Wed, 04/20/2011 - 17:10 | 1189986 dogbreath
dogbreath's picture

you never know who lurks here, and just because UT said "we own physical" doesn't mean everyone here has to state for the record how much gold you have and when you bought it.  Its like listening to you talk about your failed attemps to lose your virginity when you were 23. 

Wed, 04/20/2011 - 16:05 | 1189702 Sudden Debt
Sudden Debt's picture

If you tell the world you have 1 billion dollar in gold bullions laying arround, storing it at home isn't quite the smart thing to do.

SWISS would be my choice. No import fees. Just ship it per 10.000 ounces :)

 

Wed, 04/20/2011 - 16:23 | 1189792 NotApplicable
NotApplicable's picture

Thing is, "home" in this case is 268,820 square miles (696,200 km2).

I think they would be able to find a safe spot, or two.

Wed, 04/20/2011 - 15:21 | 1189472 lieutenantjohnchard
lieutenantjohnchard's picture

it's a good interview. good disclosure on part of endowment.

Wed, 04/20/2011 - 15:22 | 1189474 SheepDog-One
SheepDog-One's picture

'Taking delivery' doesnt mean its in the CRIMEX, take delivery and build yourself a vault.

Wed, 04/20/2011 - 15:20 | 1189477 ivars
ivars's picture

 

All signs of a log -periodic Sornette-Johansen  type bubble in silver going to crash in few weeks:

http://saposjoint.net/Forum/viewtopic.php?f=14&t=2626&start=140#p31889

http://saposjoint.net/Forum/viewtopic.php?f=14&t=2626&st=0&sk=t&sd=a&sta...

 

Wed, 04/20/2011 - 15:24 | 1189488 SheepDog-One
SheepDog-One's picture

Of course NO bubble in equities or bonds though....

Wed, 04/20/2011 - 15:24 | 1189504 Revolution_star...
Revolution_starts_now's picture

There is a bubble in everything, including poverty.

Wed, 04/20/2011 - 17:55 | 1190153 Klaus Daimler
Klaus Daimler's picture

Au contraire - there's plenty more poverty to go around, and they're making more every day, distributed by the most efficient mechanism possible.  If you're long any amount of $USD, you picked up a bit more yourself today...

Wed, 04/20/2011 - 15:31 | 1189524 JollyRoger
Wed, 04/20/2011 - 15:40 | 1189580 Revolution_star...
Revolution_starts_now's picture

nah, not going to happen. The pimp doesn't actually beat the whores to death, he just beats them enough to keep them working for him. He'll put lipstick on the  dollar at some point and talk about how much he loves it.

Wed, 04/20/2011 - 16:07 | 1189700 Long-John-Silver
Long-John-Silver's picture

and ships named Titanic are unsinkable.

Wed, 04/20/2011 - 18:31 | 1190285 Diogenes
Diogenes's picture

My nominee for the worst metaphor of the year. The canary in the coal mine warns the miners by dropping dead when the air gets bad. When the dollar takes gas, gold gets stronger.

Almost as bad as a news story I saw that described deregulation as "Draconian" lol.

Wed, 04/20/2011 - 16:04 | 1189687 gina distrusts gov
gina distrusts gov's picture

If it crashes i can buy more coins even bars i do not think it would stay down vey long

Wed, 04/20/2011 - 15:20 | 1189482 baby_BLYTHE
baby_BLYTHE's picture

booyah for bullion!

Wed, 04/20/2011 - 15:20 | 1189483 Goofy Bastard
Goofy Bastard's picture

Count me in to the sentiment out there questioning whether or not this Fund is actually verifying their physical gold in NY.  Investing in PMs is a vote of no confidence in the system.  So why would you blindly trust the same people in the system with your protection against the ills of the system? 

Wed, 04/20/2011 - 15:40 | 1189577 traderjoe
traderjoe's picture

A university endowment is still very much in the system. They're certainly not planning on TEOTWAEKI. I see it more as an investment by them. The advantage for PM bulls is that this further legitimizes gold as a store of value and legitimate currency...

Wed, 04/20/2011 - 15:25 | 1189485 Dejean Splicer
Dejean Splicer's picture

"As to the question of where UofT is keeping their gold: "in an undisclosed location, underground in New York." Somewhere just off Bryant Park perhaps."

Once that 1099 was received at the US Treasury that pile had one of the bars in the center of the pile swapped out with a GPS aware bar specially created at Lincoln Labs skunkworks.

Thank goodness UT wants to be the first to donate when confiscation time comes. Why else would you be so vocal?

Wed, 04/20/2011 - 15:22 | 1189493 Yohimbo
Yohimbo's picture

I was really hoping that this was politacally motivated and or a big F U to the system,

but its essentailly fairly snively "we require a hedge".  Its money based only?  surely not.

Wed, 04/20/2011 - 15:22 | 1189494 Revolution_star...
Revolution_starts_now's picture

"If the gold is "still in the COMEX system" am I wrong for thinking they really HAVEN'T taken delivery at all?"

Oh no, he has a receipt. He keeps that in the vault.

Wed, 04/20/2011 - 15:37 | 1189564 Great Dane
Great Dane's picture

Oh, Yes a receipt, wow...so much easier to haul around than some stupid lumps of yellow metal.  How Smart.

Wed, 04/20/2011 - 15:43 | 1189584 Revolution_star...
Revolution_starts_now's picture

he's got a PHD you know:)

Wed, 04/20/2011 - 15:45 | 1189592 Milton Waddams
Milton Waddams's picture

Yes, you can even examine it.  It is just beneath the 800 billion dollar IOU.

Wed, 04/20/2011 - 16:45 | 1189886 barkster
barkster's picture

i had to block your avatar so i would not puke every time i see one of your posts....

Wed, 04/20/2011 - 19:05 | 1190378 dracos_ghost
dracos_ghost's picture

Comex: Gold?!. I though you said Mold. Sorry dude.

Wed, 04/20/2011 - 15:24 | 1189496 SilverDreams
SilverDreams's picture

If you don't physically have it U of T, you don't own it...

Wed, 04/20/2011 - 15:29 | 1189513 Dr. No
Dr. No's picture

Yep.  To put it in terms a UofT Pensioner understands: its like when you go to a UT football game, and you are sitting in a seat.  Another guy shows up with a ticket with the same seat number.  The guy not sittin' is the unfortunate soul who needs to look around and figure out what happened.

Wed, 04/20/2011 - 15:43 | 1189598 Revolution_star...
Revolution_starts_now's picture

If you don't physically have outside the reach of the US government, you don't own it...

 

There fixed it for you.

Wed, 04/20/2011 - 15:26 | 1189505 Youri Carma
Youri Carma's picture

In the mean time ......

Silver back above $45 after the bizarre PPT stept in.

Eat that Paper Bug Bitchez!

Wed, 04/20/2011 - 15:34 | 1189551 SheepDog-One
SheepDog-One's picture

Every supression intervention now simply means they screw themselves more, the price just shoots right back up.

Wed, 04/20/2011 - 17:42 | 1190088 Vendetta
Vendetta's picture

Its a "floating" currency, everytime they try to drown it, it pops right back up to the surface.

Wed, 04/20/2011 - 15:26 | 1189510 redpill
redpill's picture

Tooth & fuckin nail fight to the close today, dammnn they are trying to stop $1500/$45 from being the headline all night.

Wed, 04/20/2011 - 15:36 | 1189559 SheepDog-One
SheepDog-One's picture

$46 will probably be the headline theyre trying to fight tomorrow.

Wed, 04/20/2011 - 19:45 | 1190481 oddjob
oddjob's picture

Price does not matter,number of ounces does.

Wed, 04/20/2011 - 15:38 | 1189560 bingaling
bingaling's picture

If not today tomorrow . -It makes no difference the demand is there for the physical and will remain there . The only thing that would change this is a strong dollar and the rising of interest rates - a strong Euro which actually works and a Japan that has no nuclear problems . So if not today tomorrow . 50 and 2000 are where they are headed and then who knows ? like the UT guy said we don't know but it doesn't look like things are going to change from the way they are now .

Wed, 04/20/2011 - 15:40 | 1189573 SheepDog-One
SheepDog-One's picture

They cant change much of anything. Stop monetizing daily and manipulating it all and raise rates? Silver might go down, but the DOW would also be sitting back at 6,500 in a flash too. So their only choice is print until they drown in it. As an earlier article said, their only real plan is to survive today, and possibly tomorrow as well, after that who cares. Lunatic mindset.

Wed, 04/20/2011 - 17:10 | 1189984 Translational Lift
Translational Lift's picture

"As an earlier article said, their only real plan is to survive today, and possibly tomorrow as well, after that who cares. Lunatic mindset."

Yep....just like Mallowmar Kadaffy..........

Wed, 04/20/2011 - 15:30 | 1189529 kito
kito's picture

lets keep in mind its a paltry 5% of their holdings. hardly much of a hedge

Wed, 04/20/2011 - 15:46 | 1189599 bingaling
bingaling's picture

If the currencies go to shit, that 5% is going to save that pensions ass especially since they have it in physical. The UT guy was pretty repetitive on the "over stimulation by the Fed is likely to continue as Bernonke recently said".

Wed, 04/20/2011 - 15:34 | 1189539 Cleanclog
Cleanclog's picture

All those future contracts not being rolled over . . . 

Someone lost lots of fees with this decision.  And, there are shorts without a long on the other side back at the exchange.  

Wed, 04/20/2011 - 15:32 | 1189545 slewie the pi-rat
slewie the pi-rat's picture

right near bryant park works for me!

now it sounds like UT bought its bullion via the crimex or other futures market.  so, they have a $750 mm cost and they now hold $1000 mm of gold.  they did not cash out in green stamps!

i think the silver market is getting there, too, in that people who have been "rolling forward" may now have such a sweet cost basis that they might as well take the (contract amt) ounces, cash out in bullion, and take it home in a doggy bag. 

Wed, 04/20/2011 - 15:38 | 1189556 Treasure Freedom
Treasure Freedom's picture

"Bullion, grab what you can"

Wed, 04/20/2011 - 15:42 | 1189587 JLee2027
JLee2027's picture

How can any human being, intelligent enough to buy Gold because of the Bernank, think they can have their Gold "within the COMEX system" and actually own it? 

They have no fucking Gold. It's a ponzi scheme.

Wed, 04/20/2011 - 15:51 | 1189642 MrBoompi
MrBoompi's picture

Above, my comment questioning the assumption that gold in the COMEX system is not really taking delivery was flagged as junk by somebody. Who would do that?

As for Texas' gold, it would be safer in W Bush's garage than in a COMEX or JPM vault.

Wed, 04/20/2011 - 15:46 | 1189602 RobotTrader
RobotTrader's picture

By the looks of IAG, AUY today.....

Looks like everyone is throwing in the towel on gold stocks and buying physical.

Can't blame them, one of the worst sectors ever for underperformance.

Wed, 04/20/2011 - 15:57 | 1189664 lieutenantjohnchard
lieutenantjohnchard's picture

misery loves company given that your widows and orphans portfolio is barely green today.

btw: gentleman jim sinclair sends warm regards, and hopes you can attend an investing seminar in london for the gata conference. lord knows your investing techniques need all the help they can get.

Wed, 04/20/2011 - 16:09 | 1189710 Bay of Pigs
Bay of Pigs's picture

Try Goldcorp and Royal Gold, both at 52 week highs.

And Robo, try to educate yourself someday so you know what exactly is going on with gold and silver. No need to go through life stupid and ignorant.

http://jsmineset.com/2011/04/20/interview-jim-sinclair-on-gold-and-the-world-financial-system/

Wed, 04/20/2011 - 15:46 | 1189608 CustomersMan
CustomersMan's picture
FEMA CAMP handbook order by US Government – expedited order

 

     They know we know, and they are planning to take action.

Wed, 04/20/2011 - 18:19 | 1190233 KickIce
KickIce's picture

More like they know they're losing control.

Wed, 04/20/2011 - 15:46 | 1189611 earlthepearl
earlthepearl's picture

And now out of left field:

Do you think the Obumer, Birther thing could be the black swan that cuases the melt

Personally not too interested in the the whole birther crap but, interested in thoughts

Wed, 04/20/2011 - 17:43 | 1190093 55 men
55 men's picture

Trump is definitely using it to his advantage.

Wed, 04/20/2011 - 20:56 | 1190662 Papasmurf
Papasmurf's picture

It's kind of mainstream when Trump is on the bandwagon.

Wed, 04/20/2011 - 18:16 | 1190224 Diogenes
Diogenes's picture

Hardly a black swan at this point and doesn't matter anyway. If he has got away with it this long he will get away with it forever. The fix is holding.

Wed, 04/20/2011 - 18:20 | 1190236 KickIce
KickIce's picture

I think the SS# angle is interesting.

Wed, 04/20/2011 - 15:48 | 1189625 Developers
Developers's picture

Out of curiosity, how many ZH readers actually own physical Gold and/or Silver?

I'm not asking how many oz. owned, just if you do...I own both.

Wed, 04/20/2011 - 15:58 | 1189670 MrBoompi
MrBoompi's picture

I own both, and have most of it stored at GoldMoney in their London vault. I felt this was the best alternative because of the weight involved and the fact I don't want to store anything of value in the safe deposit system of any cartel bank.

Wed, 04/20/2011 - 16:26 | 1189821 jomama
jomama's picture

goldmoney is a scam and you don't own anything but paper saying you do.

Wed, 04/20/2011 - 16:13 | 1189747 Long-John-Silver
Long-John-Silver's picture

I have Gold and Silver and hold both. If you don't hold it, you don't have it.

Wed, 04/20/2011 - 16:53 | 1189907 goldsaver
goldsaver's picture

I own both, 80% silver 20% gold, in my safe, and accumulate more every month. Along with Pb and Pb delivery devices, H2O, etc.

Wed, 04/20/2011 - 18:19 | 1190229 Diogenes
Diogenes's picture

I actually own more ounces of gold than silver which looked a lot smarter when I bought it. Sorry now I did not put equal money into both.

Wed, 04/20/2011 - 19:56 | 1190503 Pedro
Pedro's picture

i sold some of mine a couple of months ago, though, i also have my PHYS and PSLV.

Wed, 04/20/2011 - 15:55 | 1189647 zerozulu
zerozulu's picture

Good thing about Gold is that when these Jews flee America, they can take it with them.

Wed, 04/20/2011 - 16:16 | 1189764 Long-John-Silver
Long-John-Silver's picture

and leave behind their worthless Jew confetti. Where ever they go they print new Jew confetti and play the game on new fools. Wash, Rinse, Repeat.

Wed, 04/20/2011 - 20:31 | 1189650 ebworthen
ebworthen's picture

 

And the FED and Fort Knox may be willing to pay the University of Texas a premium (as long as Texas got the non-tungsten bars).

 

Wed, 04/20/2011 - 16:05 | 1189688 RobotTrader
RobotTrader's picture

CRM closes up 8% at HOD with a P/E ratio of near 300.

GDX closes at LOD, with AUY and IAG smoked.

Classic example of 100% control by the PigMen.

Wouldn't surprise me to see most gold stock funds close up shop and throw in the towel.

Absolutely disgusting performance.

 

Wed, 04/20/2011 - 16:07 | 1189718 lieutenantjohnchard
lieutenantjohnchard's picture

absolutely fantastic performance for silver holders today.

we few, we happy few, we band of silver holders.

guess the poor performance of the old widows and orphans portfolio is getting to you.

and the walls of the apartment creep ever closer.

Wed, 04/20/2011 - 16:14 | 1189770 RobotTrader
RobotTrader's picture

Absolutely huge day for INTC.

Up 8% on 175 million shares traded.

 

Wed, 04/20/2011 - 16:04 | 1189695 lieutenantjohnchard
lieutenantjohnchard's picture

just saw 20 2011 silver eagles close on ebay for $1141 or $57.05 per unit.

Wed, 04/20/2011 - 16:13 | 1189739 Sudden Debt
Sudden Debt's picture

I only buy historic coins from now on.

I bought 87 Napoleon III 5 Francs & Louis 5 francs this week.

22 gramms pure silver (900/ 24,7gr) each for 29 dollars a piece.

They are just freaking beautifull and still sell below meltvalue.

Just don't buy them on ebay.com, go to the .fr, .de and .be

 

Wed, 04/20/2011 - 16:16 | 1189776 lieutenantjohnchard
lieutenantjohnchard's picture

excellent information. i'm all over it. thank you.

Wed, 04/20/2011 - 16:33 | 1189848 Sudden Debt
Sudden Debt's picture

In Europe, all the coins that have a value of 5 and are from before 1900 are silver 22gr pure coins.

5 francs

http://cgi.ebay.com/ws/eBayISAPI.dll?ViewItem&_trksid=p4340.l2557&rt=nc&nma=true&item=150590723246&si=vDFCPK6maz30xZlKlU3dG9A2DfU%253D&viewitem=&sspagename=STRK%3AMEWNX%3AIT

http://cgi.ebay.com/ws/eBayISAPI.dll?ViewItem&_trksid=p4340.l2557&rt=nc&nma=true&item=150590936142&si=vDFCPK6maz30xZlKlU3dG9A2DfU%253D&viewitem=&sspagename=STRK%3AMEWNX%3AIT

5 Lire

http://cgi.ebay.de/ws/eBayISAPI.dll?ViewItemnext&item=270733703114.html

5 Marks pre 1900

5 Pesetas pre 1900

5 Pengo pre 1900

and England = 1 Crown

Netherlands = 2 1/2 gulden

(Last 2 where against Napoleon who introduced the ecu 5 coins) (best currency every invented)

 

Wed, 04/20/2011 - 16:51 | 1189910 lieutenantjohnchard
lieutenantjohnchard's picture

thanks. the search is now much easier.

Wed, 04/20/2011 - 16:14 | 1189767 Sudden Debt
Sudden Debt's picture

I also recently bought 2 rolls of Quebec 64 silver dollars in Germany for 8 euro's a piece :)

You just have to look for them and the buys are everywhere.

Mostly from little coinstores that don't update their coins to meltvalue daily. Some just buy the yearly catalogue and use the price noted in them from jan.

 

 

Wed, 04/20/2011 - 16:23 | 1189797 lieutenantjohnchard
lieutenantjohnchard's picture

the old arbitrage trick. nice.

Wed, 04/20/2011 - 18:22 | 1190235 Diogenes
Diogenes's picture

Quebec silver dollars? I have lived in Canada all my life and was not aware Quebec had their own currency?

Wed, 04/20/2011 - 16:06 | 1189707 Dr. Impossible
Dr. Impossible's picture

U of T Loans/bails-out, N.Y. Cartel 1 BILLION U.S. Dollars at negative interest rate?

is that what i'm reading here?

Wed, 04/20/2011 - 16:14 | 1189754 BrobamaReds
BrobamaReds's picture

"Let's get physical, physical...I wanna get physical, let get into physical...let me hear your body talk."

Wed, 04/20/2011 - 16:18 | 1189782 Elmer Fudd
Elmer Fudd's picture

This is what's in the vault:

"Dear UT, I.O.U. a few bars of gold, love ya, COMEX" 

Wed, 04/20/2011 - 16:39 | 1189813 bankonzhongguo
bankonzhongguo's picture

If any Texas politician (Ron Paul?) wants to chime in, I would suggest building a "Texas Bullion Depository" ASAP.  Put some Rangers and robots around it, build a mote and fill it with kerosene.  You could use the de-funct SSC - "Desertron" outside of  Dallas.  Presto.  Ellis County has some tax revenue, the investor group turns a profit and UT is back in the saddle with a something going on at the SSC.  There are at least 10 km of underground tunnels built there already after $2 billion spent.  Somebody call the Governor.  Does Perry still want to be President?  'Yellow Rose of Texas' anyone?

I trust Texas before a bunch of NY based banksters and with China 'Oscar Mike' I don't think I want to hold physical in Asia, or off a continent I don't live on.

Plus.  "If you build it, they will come." 

Any DHS wonk will tell you NY is more likely to be nuked than Waxahachie.

Meaning a ton of other clients will be happy to move their PM to a safer haven.

Rhetoric?  Talk to me in 5 years. 

Wed, 04/20/2011 - 16:31 | 1189834 Bansters-in-my-...
Bansters-in-my- feces's picture

I see the Fucking PIG-DOG Manipulators gave the PM's a little smack back down in the early afternoon,and people just BTFD.....Too funny,......Your Fucked Benny......

Trade your cotton/linen for the money that says....
"Bought and paid for"...NOT...I .O.U.

Wed, 04/20/2011 - 16:34 | 1189840 slewie the pi-rat
slewie the pi-rat's picture

ok.  is bruce zimmerman possibly related to bob dylan?

let's say the vault, frightfully near bryant park, is , say, HSBC's, which is "comex registered" and holds comex gold, too.  a lot of it. 

whatever one thinks about who really owns this gold or the money that paid for it, i don't think mr. Z will take the gold outa HSBC, even tho it is not "comex" anymore, and has been moved into the institutional ownership room.  he may want to sell or trade it, and he doesn't want an assay.  it is already comex registered. 

call me crazy, and please take a # to do so, but this isn't pooled or even allocated gold, bought thru a bullion bank.   this is Texas' gold bullion, with identifiable gold bars stored as such in a vault near bryant park.   i don't think you'll find anyone with the right to do anything with that gold except as Texas wishes.  really.  if you think the mr X can give it to mr Y for mr ABC's short contract, perhaps you'd better have something to eat or something, ok? 

Wed, 04/20/2011 - 17:04 | 1189924 bankonzhongguo
bankonzhongguo's picture

Sometimes, a simple letter is enough to just freeze some country's or corporations's assets and a prime bank is more than happy to simply mantain control over an asset and wait for the courts to settle disputes.

Ever been to Probate Hell?

You don't think some attorney and judge could be found in NYC that would be slightly sympathic to some future JPM or COMEX plight and therefor grant an injuction to move gold out of NYC.  After all, Team Obama could simply call it a national security issue and do an FDR.

Who would of thought that the GM bondholders would get what they got through the BK court.  Well, maybe Obama will let UT trade their gold for CME warrants in 2014 if TSHTF.

 

Wed, 04/20/2011 - 17:51 | 1190137 gall batter
gall batter's picture

Team Obama can do anything it wants because of the Patriot Act.

Wed, 04/20/2011 - 17:55 | 1190148 slewie the pi-rat
slewie the pi-rat's picture

no, but i've read dickens.  and i know how the banks just wiped out the moQ when the "coalition" was given "UN permission" to attack libya. 

i'm not naive.  slewie does not = polyanna.  i can even see how some neo-con nut job would see this as compromising america's "secret" weakness, so zims should be whisked away to guantanimo and tortured b/c this ain't good for the neo-con nanny state and its propaganda wars.  that's the american dollar they're dissing!  let's just call zims a traitor and hang the worthless scum! 

but this isn't a jury award which is subject to appeal, ok?  these people put up their money, and they bought the gold.  mr. farrakhan or ms. coulter or some Alabama editor or MIT linguist may not like this, but it also helps to have a reason to get an injunction. 

for some reason this gold purchese, in this manner and matter, has triggered an unending series of hallucinations and projections about how impossible this must be!  well. it happened, and now Texas owns $1Bn. in gold bullion, stored in a vault in NYC. 

really.  nothing more.  nothing less.  and to dismiss this reality with:  After all, Team Obama could simply call it a national security issue and do an FDR... well, that is just a crock, given the facts as we know them. if you and countless other Z's have monkeys fly outa yer asses every time crimex gets mentioned, well, that explains a lot of the monkeys flying around about zimz and the Texas gold, doesn't it? 


Wed, 04/20/2011 - 18:41 | 1190314 gall batter
gall batter's picture

there are no monkeys flying out of my ass.  that team obama could simply call it a national security issue and do an FDR is not beyond beyond to me or anybody who understands the power of the pretzeldency under the P Act.  you're a moron, just saying.

Wed, 04/20/2011 - 19:20 | 1190419 psychologicalmess
psychologicalmess's picture

disagree.

Wed, 04/20/2011 - 19:32 | 1190445 gall batter
gall batter's picture

i take it back that you're a moron.  just remembered you're the person who helped me learn to put a link in my comment.  well, maybe, you're a nice moron.

Wed, 04/20/2011 - 19:58 | 1190472 slewie the pi-rat
slewie the pi-rat's picture

who knows what "Team Obama"  would or could do.  some people apparently are obsessed with "Team Obama" but i am not.

altho i am an idiot, i am not a moron.

Obama does about 100 dumbass things every morning, before breakfast, ok?  and sure, he can decide my children are destined to be slaves, too.  but that doesn't mean they will be, now, does it?

i advise simple and achievable goals for everyone who can think straight to own gold and silver US coins.  you know that as well as anyone, g_b and i've got no problem with you or your thinking, either.  Obama could set off 100 freaking hydrogen warheads, too, right?  before breakfast.  he has the codes, doesn't he? 

but i still applaud Texas and what they have done.  can you imagine trying to get a school endowment to go long $1Bn. of bullion?  i freaking love it! 

OMG the goobermint could just swoop down and take it, tomorrow!  yep, and monkeys will be flying outa my butt first, too!  but they haven't yet.  only yours, so far. and these others who can not stop singing "Mama don't allow no gold buyin, here!"  or "Ain't it awful!  and the goobermint can take it all, anytime, too!"  LOL---you read the "law" so now you "know" what can happen!  hey---thanks for telling us what we already know, ms brainiac.  you don't need to tell me what can happen!  i got drafted!  but that doesn't mean my son got drafted or that my daughter's gold will be confiscated b/c FDR already did it once, and Team Obama might like to do it, too. 

let's say it is a fact that Texas, slewie, and g_b all own PMs in various amounts, ok?  $1Bn in gold does not fit in the prescription bottle holding yer stash or slewie's and if yours won't fit there, good!  so they keep it in a vault.  what the hell, g_b, it's their gold isn't it?  can we please cut them some slack here? 

i'll stipulate:  all gold may be confiscated, someday by another criminal act of the State.

so what?  you, me, and Texas & mr. Z really give a fuk about that. today? 

we own PMs.  if that fills you with fear, i guess it fills you with fear.  the goobermint monster can come and take it away! 

yeah, but they aren't.  so get a freaking grip, people, ok?  a lot of stuff is possible.  slewie & g_b and Texas own PMs.  that is a fact.  the butt-monkeys that are flying around as possibilities are not facts, g_b. 

please be advised.

Wed, 04/20/2011 - 20:02 | 1190521 gall batter
gall batter's picture

please be advised: moron: IQ of 51-70; idiot--IQ of 0 to 25.  will have to think about cretin and imbecile.  

Wed, 04/20/2011 - 21:06 | 1190679 Papasmurf
Papasmurf's picture

Exactly.  Just like being a GM bondholder.  Contracts don't mean shit.

Wed, 04/20/2011 - 16:37 | 1189857 honestann
honestann's picture

UT morons!  You own no gold.  Nobody is holding gold for you.  All they do is issue up to 100 duplicate certificates on the same gold.  They cannot deliver to all 100 supposed owners.

If you do not hold your physical gold yourself, you will NEVER be able to get it.  Don't be a sucker... demand your physical gold.

Wed, 04/20/2011 - 17:18 | 1189979 slewie the pi-rat
slewie the pi-rat's picture

yep, me too!

Wed, 04/20/2011 - 17:09 | 1189992 slewie the pi-rat
slewie the pi-rat's picture

ann---i understand that holding it in personal possession is quite superior to relying on anyone else for anything.  still, it is possible to have $1Bn in gold bars, wrapped in longhorn blankies and banded, owned by the longhorns, in a NY vault.  and a paper receipt to aknowledge same, too!  really. 

you wouldn't hold yer $1Bn in bullion that way?  okey dokey, ann!  thanks for the feedback!  i agree with you, friend!  at my level, your level, take the gold and silver (US coins?  i hope!) home and just be cool with them, however you decided to keep them near you.  good!  great!!!  but a $1Bn.  worth which we bought for/as part of a school  endowment?  we keep that identifiable as comex-warehouse-able and trade-able IF we decide to trade it or use it for collateral for something else (as per jpmorgue's program, for instance).  that is not mr. zimmerman's gold.  he simply directed the process of buying it, branding it, and storing it in a vault near bryant park.  very near.  and now he speaks a bit about the process, their "investment base" of $750 million, and the fact that they actually bought the damned gold almost certainly now, thru the crimex via futures contacts, beginning w. longs in '09 and rolling them into today's bullion ownership of about 670,000 troy ounces of physical bullion on pallets in a warehouse near that park...

Wed, 04/20/2011 - 23:49 | 1191183 honestann
honestann's picture

Even if they could get their gold, which I can almost guarantee they cannot, the university is shooting themselves in the foot by helping the predators-that-be hold down the price of gold by giving "gold ownership certificates" to 100 supposed owners.

If those 100 owners took delivery of that $100 billion dollars worth of gold, ALL of them would realize 500% gains in a matter of minutes.  Of course, only one of them could get the gold, but the other 99 of them could instantly cash out with a 500% gain.

A great many cases have surfaced lately where these "custodians" of gold and silver did not have the gold or silver they claimed... even for so-called "allocated accounts" where the owner has the serial numbers of the bars legally required to be held for them.  There is a mammoth game of musical chairs being played now with physical gold and silver by the predators-that-be and predator-class.  This is very bad.  It has massively distorted the prices of gold, silver and fiat currencies, has allowed the criminal banksters to reap massive unearned profits, and will trash untold thousands of customers who think they own physical gold or silver.

The only way to abolish these crimes is for everyone to demand they receive the physical gold and silver that is supposedly being held for them.  When that cannot be delivered, the executives of those firms need to be rounded up and locked away and/or hung for treason and crimes against humanity.

Wed, 04/20/2011 - 17:03 | 1189951 max2205
max2205's picture

Please divide $1B by $1,500/oz= ?

666666666666666. OMFG

Wed, 04/20/2011 - 17:17 | 1190010 slewie the pi-rat
slewie the pi-rat's picture

LOL!!!  i know!  i did the math/meph to reply to honestAnn, and rounded up b/c zimz didn't mark $1500, more like $1480-90 when he signed up for "dellivery" or however he actually bought this humongous stash. 

Wed, 04/20/2011 - 17:22 | 1190039 max2205
max2205's picture

Geez, how much are they paying JPM to store all that. Could be a old west story about a man who hid his gold in them thar hills.

Wed, 04/20/2011 - 18:25 | 1190255 slewie the pi-rat
slewie the pi-rat's picture

here we have a monkey inferring JPM is getting paid "to store all that" and pretending this could be "a old west story" which is pretty damned hallucinatory from where i sit! 

DJ Comex Gold And Silver Warehouse Stocks-Apr 20

here, we have the silver contracts delivered this month, already.  you do the math.  DJ Comex Silver Delivery Intentions Breakdown - Apr 19  

because of real gold, fool's gold exists.  perhaps zimz and Texas are (gasp) as good as a zHead in getting their paws on the real. 

of course, we can also go with another 2,000 posts about tungsten and paper gold, too...

Wed, 04/20/2011 - 23:50 | 1191186 honestann
honestann's picture

That's just too funny... and appropriate!

Wed, 04/20/2011 - 17:18 | 1190020 buzlightening
buzlightening's picture

Never build a financial foundation upon a paper ponzi fiat dollar. On the broad road to monetary destruction, it's a terrible ending!

Do NOT follow this link or you will be banned from the site!