University of Texas Takes Delivery Of $1 Billion In Physical Gold

Zero Hedge ^ | 04/16/2011 | Tyler Durden

[Mariner]

If there's ever a demand for delivery of all the paper gold some very large Wall St firms and mid-sized sovereign funds will collapse.

They don't have it. It's been sold, dozens of times.

[microgood]

The only way to own gold is to possess it physically. If there is ever a run on gold those who own gold “stock” other than mines will be screwed and those who have physical gold will be rich.

[hinckley buzzard]

Somewhere between 200-300 tons-- a routine annual transaction for central banks. Sorry but I'm not panicking.

[JimWayne]

What do the Keynesians in UT’s economics department think?

[Cicero]

But the University of Texas is not a central bank. And university trustees tend to be very conservative. So this is certainly a significant event.

If other boards of trustees start doing the same thing, it could add up pretty quickly.

[STARWISE]

Worth the read

http://www.zerohedge.com/article/golden-tipping-point-university-texas-takes-delivery-1-billion-physical-gold

[null and void]

Just how long has the University of Texas been a central bank?

I missed that memo.

[mountainlion]

I bet they can turn it into straw.

[Brilliant]

Yes, but the problem with physical gold is that it can be stolen. And counterfeited.

[onyx]

HOLD GOLD!

[Pining_4_TX]

And if push comes to shove, I wouldn’t trust the owners of the NY vault.

[wmfights]

...considering there is not nearly enough physical gold to satisfy all paper gold in existence by a factor of about 100x.

I don't expect a run on the banks, but this is why buying gold is a bad idea. Only the real big players actually have possession of it.

[piytar]

It’s not huge. If others follow suit, though - and they will - it will become huge. It’s called a cascade effect in some circles, and this could be the start...

[taxtruth]

How can you take delivery when the Gold is in NY with a bunch of crooks?

[freekitty]

Uh, is this another way for the left to launder money? There is no reason for a university to possess the gold.

[Leisler]

Fedgov can just take it. Anytime. Leave a little paper with Obama’s sig on it.

How many divisions does UT have?

[xzins]

I do accept gold’s historic position as a hedge to inflation, but I do not believe that gold has an intrinsic value that approaches its financial value. Therefore, in a crisis it has no real value.

[Pining_4_TX]

Being a bunch of sissy liberals, the only division they have is the limp-wrist division.

[mylife]

There are no more monster boxes of silver left to buy.

It’s getting bad out there