[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?

[mountainlion]

I bet they can turn it into straw.

[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.

[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.

[DJ MacWoW]

Is This You Too?

“I do so enjoy these money raising pleas. Too bad you kicked off so many patriots back in the day that criticizing the big spending Bush was a cardinal sin on the so called conservative free republic.

Nope, I will happily continue to freeload information from this site. If the lights go dark, well, so be it...”

Become A Monthly FR Donor

[the invisib1e hand]

Fascinating hyperbole. We might be using Texas Dollars someday. But as for "every fund manager" following suit, and the implied short squeeze of recent fantasy, this might be hyperbole.

it was once illegal to own gold in the US. If it appears the current regime is in danger of being capsized, the powers that be will apply incentives and penalties as it sees fit to keep the ship afloat. Don't know if it will succeed, but it will have to try to "protect" the order upon which the entire civilized world is accustomed. If there's going to be any regime changing, it going to SDRs (either actual or analogous) with an initial gold backing, as my favorite blog has suggested, IMHO.

Definitely a cool development and an intriguing move by Texas.

[BobL]

Taking delivery to a vault in NYC is no different than taking paper delivery.

In a couple of years, New York will be under no obligation to allow its gold to be internationally transferred to Texas, regardless of who paid for it.

[dfwgator]

That’ll buy a lot of football players.

[Osage Orange]

Well they need to spend it on the FB team....

They suck!

[RichInOC]

…and promptly paints it burnt orange.

[matthew fuller]

http://www.kitco.com/images/live/gold.gif

[Jet Jaguar]

GoldBug Ping.

[Mikey_1962]

After a little research here is who many barrels of oil one ounce of gold bought trough the years:

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