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Category: Bullion Bulletin

Bullion Bulletin: Tech company buys physical gold

The US listed software company Palantir Technologies, which is based in Denver, Colorado, has bought $50.7 million of gold. Several factors make th...

26 August 2021

Gary Mead

The US listed software company Palantir Technologies, which is based in Denver, Colorado, has bought $50.7 million of gold.

Several factors make this important news.

The first is that Palantir was founded by Peter Thiel (alongside others) in 2003. Earlier this year Thiel was one of the backers of a new cryptocurrency asset exchange called Bullish Global. So while Thiel clearly believes in cryptocurrencies – he has called himself a “bitcoin maximalist” – it is telling that a company close to his interests is hedging its bets.

The second is the justification given by Palantir for buying gold. According to Shyam Sankar, Palantir’s chief operating officer, “you have to be prepared for a future with more black swan events”. Social media has quickly become crowded by people looking for conspiracy theories. One poster has written “One of Palantir’s biggest customers is the CIA… I’m sure they have some inside information on what is about to happen”.

The third is that Palantir bought physical bullion, 100-ounce gold bars, not gold derivatives. Glint clients who buy gold have allocated gold, which they own, like Palantir.

Some point out that the share of Palantir’s available cash going into this gold purchase is just 3%. Not a huge amount – but symbolic.

If the tech-driven Palantir is worrying about ‘black swans’ in a world that seems to becoming more unstable, then far from being old-fashioned and passé, gold remains a means of security – and Glint is the key.

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