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 ...
If so, then the University of Texas board of trustees does not own any.
That gold won’t be in NY for long. Austin has more underground mil-secure space than you can imagine.
Looks like Perry’s going to be minting some state coin?
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.
because most people in this city are not crooks, @sshat.
Somewhere between 200-300 tons—
6,643 bars of bullion, or 664,300 ounces
What do you make of this?
Besides a brooch, or hat, of course :)
Johnnie!!!
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.
That’ll buy a lot of football players.
If or when TSHTF The “Big Players" will have it taken away from them by some one bigger and nastier than them by whatever force is necessary.
If or when TSHTF The “Big Players" will have it taken away from them by some one bigger and nastier than them by whatever force is necessary.
They suck!
Internationally?
That is about 20 ton.
That is about 20 ton.
Yep a little more than Bevo can pull around in the ox cart.
How can you take delivery when the Gold is in NY with a bunch of crooks?>>>>>>>>
I suspect ornery alumni will insist it be moved to Texas as it should be.
I dont know about that. I own physical gold and silver, in my possession. I am not a central bank. I dont have a ton of the stuff, but it doesn’t take much to take possession.
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