Considered the U.S.' second largest academic endowment, the University of Texas Investment Management Company purchased 6,643 gold bars on April 17. At that time, the bullion was worth $991.7 million. The school's endowment is worth about $19.9 billion, and Dallas hedge fund manager J.Kyle Bass encouraged the investment.
"If you own a paper contract where they can only deliver you 10 cents on the dollar or less, you should probably convert it to physical," the managing partner of Hayman Capital Management told the news service.
The U.S.' top academic endowment belongs to Harvard University in Cambridge, Massachusetts.
In 2006, Bass, 41, made $500 million when he correctly forecast the U.S. subprime-mortgage market would collapse.
"Why hold your money in dollars when the Fed can double and triple the supply rather quickly and quietly and won't even tell us what they are doing?" U.S. Representative Ron Paul asked Bloomberg. "Logic tells me a lot more people will do it."
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