Kyle Bass Has University of Texas Endowment Buying Gold

According to Bloomberg, the University of Texas Investment Management Co. is storing about $1 billion of bullion in a New York City vault. The move to gold comes at the behest of a Dallas hedge fund manager:

The decision to turn the fund’s investment into gold bars was influenced by Kyle Bass, a Dallas hedge fund manager and member of the endowment’s board, (endowment CEO Bruce) Zimmerman said at its annual meeting on April 14. Bass made $500 million on the U.S. subprime-mortgage collapse.

“Central banks are printing more money than they ever have, so what’s the value of money in terms of purchases of goods and services,” Bass said yesterday in a telephone interview. “I look at gold as just another currency that they can’t print any more of.”

Here’s our magazine’s 2008 profile of Bass.


  • mightcan

    The simple, straight line, dogmatic view is printing more money translates to more inflation. We’ve had this administration for almost three years, including (large) stimulative actions. We’ve got China and India emerging – all inflationary. Where is it then?

    One more question, did Kyle Bass inherit his wealth? Is it another case of a delusional millionaire’s rags-to-riches tale? “I came to Ft. Worth 20 years ago with only $300 million dollars in my pocket, and now, I’ve got all of this!”

  • Who would have thought that the guy from Tenacious D would know this much about money?

  • Jeff

    hmm, This kinda thinking is kinda crazy. Tell me if i am wrong here. I am thinking there is still plenty gold left in the ground to be found. Sounds like a bunch of market manipulation via gold.

  • Dubious Brother

    Hind sight says buying gold would have been a smart move five years ago at $600/oz. or two years ago at $900/oz. but today to buy an asset that doesn’t pay interest or dividends at a 10 year high of $1,500 /oz? No mention of buying gold in 2008.

  • hey jeff, it takes money and energy to bring that gold out of the ground.

    It takes Zero energy to write up digits on a computer screen.

  • Arec Barrwin

    Not exactly a rousing endorsement of Obama’s fiscal policies or Bernanke’s monetary policies. Obama is a fool to allow his economic team to deflate the currency in this manner. Bush left him with some bad problems, but Obama is prescribing the wrong medicine.

  • Me!

    Harumph, just another guy thinking he is smarter than everyone else, just because he knows stuff we don’t.

  • RAB

    So, the University of Texas has the fourth largest endowment in the country, with $14 billion of assets. (Of course, it’s only half of Harvard’s, but that, ahem, is to be expected.) Presumably, the investment committee for the University of Texas’s endowment is not populated with stupid people. Moreover, Kyle Bass is not some foaming-at-the-mouth goldbug. This is a very well researched and deeply considered investment move. (The Central Bank of India bought 200 tonnes of gold in 2009, and they, presumably, are not stupid either.)

    By the way, the price of gold has not gone up so much as the value of the U.S. dollar has gone down. UT will be vindicated in this trade.

  • Old hickory

    “foaming At the mouth gold bug”? Perhaps you could respect those who know more about money than you do. Bad money pushes good money out of circulation. Most people have never even thought about what money is. Money is a tool for free people to trade and live in peace with each other. Google ayn rand hym to money. Those who choose paper dollars over gold and silver are destroying this nation which was founded in sound money.

  • RAB

    Dear Old Hickory:

    1. You obviously didn’t read my post; and

    2. I know far more about money than you could learn in three lifetimes.

    Please check your dictionary for “hym” — and then look up “ode” while you’re at it, which is what you meant.

  • Young hickory

    Kyle Bass isn’t part of the FW Bass Family, he’s a self-made man & TCU graduate

  • did you read the article?

    The article says he recommended they take delivery of the gold they had already purchased last year. It does NOT say they recently bought gold. “The fund…added about $500 million in gold investments to an existing stake last year, said Bruce Zimmerman, the endowment’s chief executive officer. ” Am I the only one that actually reads the linked article?

  • The Federal might not be able to “print” gold, Mr. Bass, but nature sure has alot more of it around than we’ve found. Silly reasoning here…