With gold closing at an all-time high, silver hitting new 31 year highs this week and the US dollar continuing its plunge, the Godfather of newsletter writers, Richard Russell had this to say in his latest commentary, “One of the questions that I'm most frequently asked is this: ‘Russell, do you think the US government will call in all the privately-held gold, just as Roosevelt did in 1933?’
I've thought about this at length, and I've arrived at what I believe to be the correct answer. The answer is -- No, the government will definitely not call in the gold. The simple reason is that a tremendous amount of gold is held in very powerful hands. Gold (GLD) and gold bullion is held by pension funds, university endowment funds, large powerful hedge funds, corporate reserves, and state treasuries. Note the two paragraphs below.”
“AUSTIN — ‘Fearing unstable international financial markets and the possibility of high inflation, Texas' higher education investment managers have bought more than $500 million in gold. "The gold purchases represent only 3 percent of the University of Texas Investment Management Co.'s $22.3 billion in investment funds, but it indicates how deeply the fund managers are concerned about the global financial future."