|ORO Y PLATA INTERNACIONAL S.A.
Texas University Endowment Storing
About $1 Billion in Gold Bars
April 16 (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.
The fund, whose $19.9 billion in assets ranked it behind Harvard University’
s endowment as of August, according to the National Association of
College and University Business Officers, added about $500 million in gold
investments to an existing stake last year, said Bruce Zimmerman, the
endowment’s chief executive officer. The holdings are worth about $987
million, based on yesterday’s closing price of $1,486 an ounce for Comex
The decision to turn the fund’s investment into gold bars was influenced
by Kyle Bass, a Dallas hedge fund manager and member of the
endowment’s board, Zimmerman said at its annual meeting on April 14.
Bass made $500 million on the U.S. subprime-mortgage collapse.
“Central banks are printing more money than they ever have, so what’s the
value of money in terms of purchases of goods and services,” Bass said
yesterday in a telephone interview. “I look at gold as just another currency
that they can’t print any more of.”
Gold reached an all-time high of $1,489.10 an ounce yesterday in New York
as sovereign debt concerns boosted demand for the metal as a store of
value. Gold has climbed 28 percent in the past year on Comex.
The endowment, which oversees funds held by the University of Texas
System and Texas A&M University, has 6,643 bars of bullion, or 664,300
ounces, in a Comex-registered vault in New York owned by HSBC
Holdings Plc, the London-based bank, according to a report distributed at
the meeting in Austin.