Massive Gold Purchase Shocks Markets

Source: GoldAlert (4/18/11)

"Texas teachers pension fund places 5% of its assets in gold bullion."

The world of institutional investors received a stark message over the weekend regarding the legitimacy of gold as an asset class. The University of Texas Investment Management Company, which manages the endowment for the Texas teachers pension fund, has placed 5% of its assets in gold bullion. This represents a purchase of $1 billion of gold bullion; in excess of 650,000 ounces at today's prices.

Of note was the fact that the entity chose to place its investment not in gold ETFs, but rather in physical bullion due concerns regarding counter party risk. The request to take physical delivery from the COMEX also casts light on risks of a COMEX default since gold in COMEX vaults only amounts to approximately 5% of the outstanding gold contracts.

In the 1970s, asset allocation recommendations from U.S. brokerage houses and European banks routinely included a 5-10% allocation to gold. Despite gold's rise, the yellow metal still represents sub 1% of the global market cap of all assets. The news of this $1 billion purchase over the weekend sends another strong message about gold's re-emergence as a legitimate asset class.

It is somewhat ironic that these events are occurring after a nearly six-fold rise off gold's $250 per ounce low at the turn of the millennium. Investors will be watching closely to see if this move triggers similar reallocations among other large pension funds.

Gold Explorer Highlights 2020 Achievements and Outlook
Source: Streetwise Reports (01/29/2021)

Magna Gold Corp.'s CEO Arturo Bonillas issued a letter to shareholders outlining the firm's business and financial accomplishments in 2020 and its strategy and outlook for 2021.

Cabral Gold's channel samples at the JM target provide "further evidence that numerous high-grade veins occur within the Cuiú Cuiú district."

Explorer Completes Phase 2 Metallurgical Work for Palladium-Copper Project
Source: Streetwise Reports (01/28/2021)

Generation Mining intends to wrap up the feasibility study on Marathon this quarter.

Silver Firm Reports Q4/20 Processing, Production Numbers from Mexico Project
Source: Streetwise Reports (01/28/2021)

MAG Silver's joint venture project Juanicipio produced 230,000 ounces of silver during the quarter ended Dec. 31, 2020.

Explorer Reports High-Grade Gold-Silver Intercepts at BC Golden Triangle Property
Source: Streetwise Reports (01/27/2021)

Scottie Resources Corp. advises that the target remains open in most directions.

Golden Arrow Resources Out Exploring Again After COVID-19; Hits High-Grade Gold at Tierra Dorada in Paraguay
Source: The Critical Investor for Streetwise Reports (01/27/2021)

The Critical Investor explains why he believes "investors have an interesting opportunity to invest in a pretty derisked, undervalued and experienced explorer with three chances for success."

Junior Mining Sector 'the Best Value in the Space'
Source: Streetwise Reports (01/27/2021)

The StreetSmart Live! Broadcast on Jan. 26, 2021, focused on metals and why now is a good time for investors to be looking at them and the mining space. John Newell, independent analyst and portfolio manager, and John Feneck, mining sector expert and president of Feneck Consulting, addressed the status of the current metals market. CEOs of the three metals-focused companies comprising the Metallic Group of Companies—Group Ten Metals, Metallic Minerals and Granite Creek Copper—discussed their projects.

Shenanigans Abound: Gold, Silver and Cryptocurrency
Source: Michael Ballanger for Streetwise Reports (01/26/2021)

Sector expert Michael Ballanger explores the generational trends currently shaping investment markets, including the precious metals.

MMT Survey Helps Explorer Identify New Large Target at Ecuador Property
Source: Streetwise Reports (01/26/2021)

Aurania Resources reported that data from an ongoing Mobile MT Survey identified an extensive target at Tsenken at its Lost Cities - Cutucu Project in southeastern Ecuador.