$111B Texas Retirement Fund Manager: “Every Single Case of Hyperinflation…Was Preceded By Government Deficits That Got Out Of Control”
January 7, 2013 | By Tekoa Da Silva
Buried in the pages of The Silver Institute’s website this week, was a commentary published with the Head of Global Research of the $111B Teacher Retirement System of Texas (TRST) pension fund, Shayne McGuire. McGuire also runs the $800 million GBI Gold Fund.
Of particular interest were his comments on hyperinflation and the non-existence of central bank & institutional fund investment in silver.
McGuire said, “Silver is predominantly an investment held by individuals, particularly high net worth individuals, since most institutions wanting exposure to precious metals simply buy gold. I have never met an individual or institutional investor that only owned silver; most silver owners hold investments in gold as well…Above ground it [silver] is rarer and central banks hold no silver—an [attractive] supply-demand consideration.”
He further added that, “[In] the 1960s…the U.S. Treasury began selling the last of its [silver] holdings…[and] have not held silver for decades.”
When prompted to the subject of hyperinflation, McGuire added that, “Every single case of hyperinflation…was preceded by government deficits that got out of control…gold and silver are signaling that inflationary risks are present.”
Bottom Line: There is now a steadily growing flock of multi-billion dollar fund managers responding to the canary in the coalmine of gold and silver, but more importantly, speaking publicly about it. This will no doubt help set the stage of general public acceptance as the metals surge higher.
Thoughts are welcomed.
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