Higher education fund buys gold over economic worries
So Texas University is buying gold to protect their assets. How about you? Click above to shop for gold and silver.
Jitters have investment fund for UT, A&M buying gold | Business | Chron.com – Houston Chronicle
Higher education fund buys gold over economic worries
Copyright 2010 Houston Chronicle
July 14, 2010, 9:40PM
AUSTIN — Fearing unstable international financial markets and the possibility of high inflation, Texas’ higher education investment managers have bought more than $500 million in gold.
The gold purchases represent only 3 percent of the University of Texas Investment Management Co.’s $22.3 billion in investment funds, but it indicates how deeply the fund managers are concerned about the global financial future.
With the state’s endowment funds designed to generate a 5.1 percent distribution each year to the University of Texas and Texas A&M University, it is rare for the investment managers to put large sums of money into a commodity whose value usually only grows through inflation.
“Recently, we’ve added 3 percent, 3 percent of our portfolio, into gold as a protection against inflation, but even more as a lack of confidence in financial markets due to extraordinary government fiscal and monetary stimulus,” UTIMCO CEO Bruce Zimmerman told the University of Texas board of regents Wednesday. “I wish I could tell you the future looked rosy. Unfortunately, that’s not our view. At best, we believe the future is uncertain.”
[more at above link]
