FEARS OF INFLATION and unstable international markets have led Texas' Higher Education Investment Managers to Buy Gold equivalent to $500 million.
Although the gold bought by the University of Texas Investment Management represents just 3% of their $22.3 billion in investment funds, it shows just how anxious the fund managers are about the state of the global economy.
"Recently, we've added 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," The CEO of the Investment Managers, Bruce Zimmerman, told the University of Texas board of regents on 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."
Universities use the money for scholarships, faculty salaries and other priorities.
Zimmerman also said there is a possibility that economic growth will fall while inflation rises.
Investments in gold, natural resources and hedge funds are a means of countering that possible trend, he said. He said most of the purchases have been through Gold Futures trading, but he said University of Texas Investment Management may take possession of Physical Gold.
Other large investment funds, including Asian Sovereign wealth managers, have recently begun Buying Gold too.
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