Note: This is a summary/reaction to a story from the latest webcast of The NonProfit Times TV.
The gold rush might have ended years ago, but it seems like nobody told The University of Texas Investment Management Company. The organization, which handles endowment funds for The University of Texas and Texas A&M University, has taken possession of over a staggering $1 billion in gold; and we're not talking actual gold bars here, not just in paper. The company first began investing in gold ventures in September of 2009, and continued doing so for another 12 months (into October 2010). CEO Bruce Zimmerman said that his company’s purchases at the time reached $750 million dollars. A hefty sum, no doubt, but it would appear their gamble paid off in the end. Because of a change in gold's market value, their purchase is now worth close to $1 billion dollars. Talk about a return on investment.
So why did his organization purhcase so much gold anyway? Well, according to Zimmerman, they it was to hedge against the possibility of a devaluation or debasement of currency. Students shouldn't try looking around their campus for the gold, however. It is currently being locked away at an HSBC bank in New York City.
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