Posted on 04/16/2011 5:15:45 PM PDT by The Magical Mischief Tour
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 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 $1 billion in gold bullion and is storing the bars in a New York vault, according to the fund’s board." And so, the game theory of a nearly 100 year old system of monetary exchange has seen its first defector, but most certainly not last. With an entity as large as the University of Texas calling the bluff of the Comex, the Chairman, and fiat in general in roughly that order, virtually every other asset manager is now sure to follow, considering there is not nearly enough physical gold to satisfy all paper gold in existence by a factor of about 100x. The proverbial Nash equilibrium has just been broken.
(Excerpt) Read more at zerohedge.com ...
They can own whatever they want.....they do not need to present you with a reason.
…and promptly paints it burnt orange.
The comments at the article are very informative.
I suspect, or hope - this is actually an add-on: UT already had 500m AU - that the gold will be incrementally stocked in some very secure places around the city soon.
And what happens to all those pieces of paper folks are holding instead of real gold when the U-Know-What hits the fan? Can’t barter much with a piece of paper...
Silver as well - just ask JP Morgan. Comex and PM ETFs are the most laughable creations in financial history.
Very true. But....for spot plus 75%, I'll sell you as many as you would like. Supply an demand is a Bi$%h.
I agree. Gold has properties that make it a good conductor and some other industrial applications. It also makes nice looking jewelry that doesn’t corrode. Platinum does the same.
However, neither metal, in and of itself, has any distinguishing property to make it more valuable than any other item of similar characteristics. Its value is based solely on people’s desire to posses it.
Money is a medium of exchange that represents work. Whether its wampum, seashells, gold, or US dollars, the only value it has is that people agree to use it in exchange for work.
While the US dollar and economy are under very serious pressures, there is no reason to chicken little the situation and demand gold be the silver bullet </very bad pun>.
Remain calm, demand a significant decrease in government spending, and keep working. Spend and save prudently.
And what exactly stops you or me from buying American Eagles, Canadian Maple Leafs, or Kruggerands...(etc)?
GoldBug Ping.
How does that work? If I can make my own gold in meaningful quantity, I'm undoubtedly rich enough not to need to.
None. But it does lie within the boundaries of the once, and possibly future, Republic of Texas.
Well, well. We may have The Republic of Texas returning. I'm all for that.
The event follows the Pimco Treasury sell off. It reinforces the disdain and faith in the US Government securities.
It undoubtedly further pisses off the Obama regime already irritated with a successful Texas.
It has the best of the best armored divisions at El Paso
Year Barrels of Oil
1947 16.07
1972 16.23
1980 16.44
1990 16.54
1997 17.76
1999 16.85
2010 17.20
Black gold, Texas *T*, has made the system what it is today.
Take a bar of tungsten and plate it with gold.
Please add me to the GoldBug ping list. Thanks!
I’ll bet that the gold will shortly be moving to Texas.
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