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University of Texas pension fund took delivery of its Comex gold

Section: Daily Dispatches

9:53a HKT Saturday, March 23, 2013

Dear Friend of GATA and Gold:

Our friend Gene Arensberg of the Got Gold Report notes today an inadequacy in your secretary/treasurer's correction yesterday of this week's report that the University of Texas pension fund stores gold at the Federal Reserve Bank of New York:

The university pension fund's gold ownership was indeed, as your secretary/treasurer speculated, a matter of Comex gold contracts with nothing to do with the New York Fed. But, Arensberg notes, last year investment fund manager Kyle Bass, a former member of the university's board, told CNBC that the pension fund took delivery of the gold underlying the contracts and stored it in a Comex-approved vault with HSBC:

Of course in light of HSBC's public relations disaster a year and a half ago as it attempted to show off the gold hoard it holds for the exchange-traded fund GLD but ended up displaying another ETF's gold instead --

-- and in light of HSBC's being the world's biggest gold short, one may wonder whether the university's gold is now any more secure than it would be if it was left on a sidewalk in the South Bronx.

All the more reason for Texas to build the state government vault being proposed for repatriating the university's gold.

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.


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