Palantir invests $51 million in physical gold

The American software company Palantir Technologies has $51 million worth of physical gold this month purchased. The company, which was founded in 2003 and has a market value of $50 billion, bought the gold in the form of 100 troy ounce bars. She stores these gold bars in a professional storage location in the northeast of the United States. It concerns physical gold, because the company says it is able to withdraw the precious metal in the short term.

The software company has previously indicated that it will accept Bitcoin and gold as a form of payment. A spokesperson for the company told Bloomberg that no one pays with these resources anymore, but that their acceptance is part of a different worldview. "You have to be prepared for a future with more black swan events".

In addition to gold, Palantir also added several stocks to its reserves. For example, she took a stake in ten different companies for a total of $250 million. This is evident from its latest Reporting to the Securities and Exchange Commission (SEC), the U.S. regulator. All publicly traded companies in the U.S. must disclose their positions to this regulator once a quarter. This way, shareholders know exactly which positions companies hold. In this way, it was also well-known that Tesla had bought $1.5 billion worth of Bitcoin at the end of last year.

Companies get into gold and stocks

Lately, we have seen more and more reports of listed companies adding shares or cryptocurrencies to their reserves. add. However, the purchase of physical gold is a new development. The precious metal is not used as a means of payment, nor does it generate any income. Still, large companies may have a good reason to buy gold. For example, money in a bank account no longer earns interest. In fact, in many countries, companies are already dealing with negative interest rates.

In addition, there are growing concerns about the value of money and the stability of the international monetary system. Governments are throwing money around, while central banks no longer know what to do to stimulate the economy. In this climate of currency depreciation and negative interest rates, even large companies have to think about what to do with their money. It is no longer so obvious to leave everything in a bank account. That is why companies are also looking for alternative investments, such as stocks, gold and cryptocurrencies.

This contribution was made from Geotrendlines