GOLD – THE PERFECT ANTI-INVESTMENT – The University of Texas made an extraordinary investment decision on April 15th, when they not only moved 5% of their assets into gold; they actually bought gold and not an ETF. This second-largest academic endowment in the US, decided that they needed insurance against inflation, as a result of current fiscal and monetary policies. “The role gold plays in our portfolio is as a hedge against currencies. The concern is that we have excess monetary and fiscal stimulus,” Bruce Zimmerman, chief executive officer of The University of Texas Investment Management Company told CNBC television. Mr.Zimmerman also described gold as an anti-currency, being it is in limited supply and you cannot just print some more. Gold will not only protect you against inflation and currency risk, but market failure as well.
The US dollar slipped to near 2 1/2 year lows today, on expectations that the Fed will give no indication on Wednesday, when they might end their loose monetary policies. "I don't think [the Fed is] ready, but they are preparing the groundwork" for an eventual tightening, said Joseph Trevisani, chief market analyst at FX Solutions. If the Fed continues to downplay inflation, it is likely the value of the dollar will continue to decline.
At 4PM (CT) the APMEX precious metal prices were:
- Gold price - $1,508.30 (down $1,80)
- Silver price - $45.65 (down $1.57)
- Platinum price - $1,807.00 (down $20.10)
- Palladium price - $753.40 (down $8.40)
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