In investing, extreme behaviour is becoming more mainstream every day.
How else can we interpret the extraordinary moves by the University of Texas' endowment fund to not only buy nearly $1 billion of gold, equal to about five percent of its assets, but to insist on taking physical delivery of the precious metal.
Things really have come to an interesting juncture when the second-largest academic endowment in the US, managed and advised by sober, rational people, decides that what they need is insurance against getting, in essence, robbed, via inflation, by fiscal and monetary policy.
Little wonder that gold futures went above $1,500 per ounce for the first time on Wednesday (April 20), driven by a laundry list of concerns starting with a falling dollar and not ending with the growing chance of "debt restructuring" (well, default, if you insist) by Greece.
"The role gold plays in our portfolio is as a hedge against currencies. The concern is that we have excess monetary and fiscal stimulus," Bruce Zimmerman, chief executive officer of The University of Texas Investment Management Company told CNBC television.
Image: A salesman helps a customer to try on a jewellery set at a jewellery shop in a shopping district in Beirut.
Text: James Saft, Reuters