Investments in gold are on the rise as fears of inflation leave investors scrambling to find ways to hedge against it.
An unconventional investor in the precious metal is the American software company, Palantir Technologies Inc (NYSE: PLTR), which disclosed in its earnings report last week that it bought gold bars worth $50 million this month.
Gold prices are down about 7% this year
At the peak of the COVID-19 pandemic last year, an ounce of gold cost more than $2,000 for the first time in history.
While the momentum lost pace this year, with prices down about 7% to date, Palantir is confident that gold could be its shield in an economic environment filled with uncertainty.
“During August 2021, Palantir purchased $50.7 million in 100-ounce gold bars. Such purchase will initially be kept in a secure third-party facility located in the northeastern United States, and the Company is able to take physical possession of the gold bars stored at the facility at any time with reasonable notice,” Palantir said in its earnings press release on August 12th.
Palantir could also invest in cryptocurrencies
Palantir has not yet commented on its investment in gold. The move, however, isn’t much different from Tesla that diversifies into Bitcoin. Earlier this year in May, Palantir’s finance chief Dave Glazer confirmed that the data analytics company was considering investing in crypto, which many now view as a gold alternative to hedge against inflation.
While Palantir is yet to turn profitable as a public company, it is now debt-free with a growing supply of cash on the back of share sales and proceeds from stock options. The NYSE-listed company is investing aggressively to grow and have recently taken up an interest in SPACs.
In related news, billionaire investor Cathie Wood added to her position in Palantir after its Q2 report last week.
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Wajeeh Khan
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