“Palantir bought the gold in case of a ‘black swan.’ We don’t know what that might be, but we have some guesses. It might be a big freaking war, for starters, the chances of which ticked up a bit after the Afghanistan debacle. Or a currency collapse. Or who knows what. We seem to have big black swans every few years, so it’s probably not a bad idea to keep some gold around.”
USAGOLD note: In this article, Dillian delves into what might be behind Palantir’s decision to purchase roughly 28,000 troy ounces of gold in 100-ounce bars and recommends a way of viewing gold we have advocated since the publication of the first edition of The ABCs of Gold Investing in 1996. “As gold investors (I hold a bunch),” says Dillian, “maybe we should stop thinking about gold as a trade or an investment and start thinking about it as an insurance policy.” We first brought attention to Palantir’s purchase last Friday with the observation that they might “know something the rest of us don’t.” The firm, founded by Peter Thiel and Alex Karp, specializes in software programs used by governments.