Sunday, April 17, 2011

COMEX Vs. $1 billion Physical Delivery from the University of Texas

Ring the fuckin alarms...I told you the tipping point was near...was not expecting this. Read it. Enjoy it. Envelope it. Celebrate it. Suckfuck it. Our time is near.


A Golden Tipping Point: University of Texas Takes Delivery Of $1 Billion In Physical Gold
Submitted by Tyler Durden on 04/16/2011 19:59 -0400

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 of 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.

From Bloomberg:

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 futures.

Years from now, when historians attempt to define who may have started it all, one name may emerge...

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.”

In summary - the fiat tide is now going out. And among those who will first be observed swimming naked are the very same people whose fate has been so very intrinsically linked to the perpetuation of a flawed regime (and who coined this very saying). In the meantime, hold on to your hats: should a scramble for delivery ensue, the recent parabolic move in various precious metals will seem like a dress rehearsal for what is about to transpire.

The only open question is who was the broker with enough gold to deliver to the UofT. We hope to find out soon enough. We also hope that the UofT is smart enough, and that Kyle Bass advised it, that if they are getting "delivery" in a Comex vault in New York, the gold has likely already been leased out at least several times to various entities demanding paper allocations...


  1. Kyle Bass was calling to sell Japanese debt in February, a month before the earthquake / tsunami / nuke event.

    Smart guy.

    Too bad they didn't buy silver though. Would have busted COMEX in a heartbeat.

  2. Monday should be an interesting day!!!

  3. Couple this with the news out of Bolivia nationalizing the silver mines there both gold and silver are certain to take off here soon. I don't know about any of you but there is such difficulty in obtaining physical silver right now no matter what you purchase is over a month and sometimes almost two for delivery. I'm told by most dealers now to expect at least 6-8 weeks.

    I'm actually spreading my purchases now between several dealers again. I notice the fastest is Colorado Gold and then Miles Franklin is a close second. Don't ask me what's up with the rest of them but there are problems developing.

    It's starting to get risky to purchase and if you don't already have a stash you better get busy......developing....

    The News UNIT Blogspot

    I'm going to take an in depth look into what's going on in Bolivia. If you haven't read my blog about this you'll find the information search "JIT" or "Just in time" on my blog there for a report by a man named Gary Yantis.

    This guy has some information worth listening to. He suffers from Lyme Disease. Check out his videos on you tube. He's a ham radio operator so it confuses some people why he calls himself "W---zero--T---M". It kind of makes some go---WTF?

    Well don't miss his video's on YOU TUBE they are jammed with some good info.

    I'm don't see how silver would not go to $65.00US by July. Obviously the government can do whatever they want BUT there are so many MAJOR disturbances going on that are just getting way to ripe right now.

    "Iceberg dead ahead sir!".

  4. That's one hell of a pile of gold. They better check each bar to make sure they didn't get the ol' goldtung.

    Should be interesting to see how many more big players start to load up in the next few months. There's gonna be some (99 out of 100) really pissed off dipshits that trusted paper gold...

    Tick tock tick tock


  5. Fidelitade seems to always have phy silver and gold. After all they are almost the biggest dealer and holder of PM's. They hold most of the allocated and pooled accounts for most gold IRA's and sell a ton as well. Take a look.

  6. I believe the UT investor, Zimmerman, has been buying gold for the school's portfolio for some time, I read an article on him a while ago ... will have to double check how much, but he was one of very few people in nation that was making a school profitable with his investing acumen.

  7. yeah here's more on it from last year ...

  8. @All: Just a quick one: Is there anybody that actually has seen this article posted by Bloomberg itself?. I have tried to verify the existence of this article and can not find it.

    There are lots of other sites that quote the same thing, but I can not find a link that actually is from Bloomberg itself.

    Anybody found something?

    THIS IS NO TROLLING, I just want tot be sure about this information given.

  9. PS: Found it! If anybody else is interested:

  10. Bob Chapman recently speaking on why SLV and GLD are basically screwed unless the bribe money keeps coming in to allow Blythe to settle for cash.

    I been thinking, when if ever this happens, when would SLV GLD become worthwhile short positions? Anyone?

  11. Ah, I know understood who Blythe is! :)
    But at what occasion does people "love Blythe today?"

    Is it optimistic to assume the beginning of a 15% fall of the world markets on monday-tuesday?

    At least thats what my Palantir 2000(C) tells me..

  12. bring up a good question. Who knows what will happen when the Comex "OFFICIALLY" defaults and the GLD and SLV are setting in cash.

    There is a scenairo which John Galt put forth in his series called "The Day the Dollar Died", in which the markets closed and there was a Bank Holiday. I believe its coming...and with the crap that is going on now, it looks like it will be here sooner than later.

    If this occurs, then having money in ELECTRONIC PAPER CONTRACTS whether they be stocks, futures, or options may be an unfortunate you won't be able to buy or sell for who knows how long. Any gains or worse, losses can't be stopped out as accounts are frozen.

    I believe bullion is ones best bet and if you have extra money, then some would be fun to throw in the market for kicks and giggles.

    The financial system and economy has head into an exponential trend. Just a year ago big events took place maybe once a month or every few weeks. Today, crap happens several times a day.

    I think we have maybe 3-6 months before the tires fall off the economy and the whole system goes into disintegration.

    One quick story. My wife and I went into a health food store a few weeks back to buy some more bulk grains to store and we spoke to a retired female cashier. She told us we should hurry up and buy because shortages were coming soon. I was really surprised to hear this from this woman.

    She went on to say "She didn't think the USA would have a 2012 election. I roared out laughing as my wife told her that that was my line. Just amazing how many people out in the woodwork know what the hell is really going on.

    There is less and less time to prepare before panic sets in the public arena and then it will be too late to anything about it.

  13. Austin, Texas, baby (my hometown)! Hook 'em horns!

  14. Sure they "bought $1B in gold" but what's the chances UT HAS it? 0.00, right? You know it's sitting in HSBC's basement. I haven't seen anything that proves they possess it.

    That said, when the MSM catches wind, it do think it will be a tipping of some proportion. All that needs to happen is for headlines to include the following words: $1 Billion, gold, bought. That's enough for the fund managers and chuckleheads on WS to question their own paper investments.

  15. Why am I seeing two different silver prices? Kitco reports $43.05 closing on Friday and the "ticker" on this site and reports $42.98

  16. Ok, nevermind.

    As 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."

    What the hell does this mean? Some dudes from Texas went to NY to "take delivery" of their gold? Semantics error? How can one "take delivery" and store a few tonnes of gold in a vault 2000 miles away at the same time?

  17. " $1 billion Physical"?

    I hope it hasn't got "Fort Knox" stamped on it.

    They'll break their drills trying to test it!

  18. Some of APMEX delivery times are already in late May.

  19. Monkeysmoke,

    The difference is whether the data is sourced from the bid or the ask.

  20. iflash... go stick your head in the sand.

  21. Rocco,
    I'm right there with you. I think we rerally start going bad in November/December. By next spring its mad max. But, by September, If you are not ready to ride this thing out it will to late to prepare.

  22. Thanks, Guy, for the clarification.


  24. SGS,

    I found a video I know you will want to see. It's about Fukashima and covers HAARP and Mossad involvement. This is powerful info from Leuren Moret a geoscientist who worked at the Lawrence Livermore Nuclear Weapons Laboratory on the Yucca Mountain Project, and became a whistle-blower in 1991 by reporting science fraud on the project and at Livermore. She is an independent and international radiation specialist, and the Environmental Commissioner in the city of Berkeley, Calif.

  25. @Sierra: Will do. If you go fuck yourself, moron. I just asked a question because I feel it's important to verify information given without proper source.

  26. Take 5 minutes and let the Regents for the UT Endowment know about their HSBC Comex secured gold investment.
    The addresses are at this link.

    The University of Texas has recently gained some notoriety in the gold investment community for its large investment in gold. As you undoubtably realize, an investment in gold is a vote of non-confidence in the fiscal policies of the Federal government, and it's imprudent economic behavior.
    Unfortunately, the COMEX wherehouse where the UT gold investment is stored has become very discredited. HSBC, the operator of the COMEX vault apparently storing the UT investment, has unpayable, underwater COMEX gold shorts, and is widely assumed to be in default. It is also speculated that HSBC gold, has been leased to other entities, such as the GLD ETF, which HSBC is custodian for.
    The gold community has long been suspect of banks like HSBC and their gold holdings, and I respectfully bring these matters to your attention. I can forward you link supporting the above concerns if you are interested.

  27. @JPDG I think "keep Austin weird" is more appropriate..

  28. they have 18 billion left to spend.... take delivery of $1 billion silver...and blow up this whole stickin' scam.