1 Billion dollars worth
The Texas Longhorns have been known to take some big gambles on the gridiron, but rarely have those who handle the UT systems $20-billion savings account made a more attention-grabbing wager:
A $1-billion buy of pure gold bullion, more than 41,000 pounds of the precious metal stored safely in a New York City vault. The giant purchase raised more than a few eyebrows in the financial community.
â??This is just a bet on the value of a dollar decline and a rise in gold prices for them. Their job is to make money for their endowment. Thatâ??s what they do,â?? said Lance Roberts of Streettalk Advisors.
Roberts said considering the credit downgrade of U.S. Government debt, the UT system purchase, even at more than $1,400 an ounce, may prove both prudent and profitable.