Black Swans & Yellow Cake


Palantir Technologies is hedging — protecting — its balance sheet for another black swan event by adding to its gold position aggressively.

Not hard to be aggressive when the last time the precious-metals-to-commodities ratio was at current levels gold was below $1,000. What happened next was new all-time highs.

Palantir spent $50.7 million on gold bars in August. Not paper contracts that can be manipulated... real bars stored in a secure location.

Shyam Sankar, the chief operating officer, said it was preparing for a future with more black swan events.

What kind? They’re black swans and just like no one can predict when the gold price will hit new highs, no one can predict a black swan event. Hence the term.

I’ve said for years the Titanic version — where it’s obvious what’s going to happen if you’re paying a little attention — is a blow up in the bond market either in Europe or here.

What does Palantir do? It makes software used by governments and businesses. Software that helps governments and corporations navigate through and hopefully prepare for black swan events.

It also has approximately $2.3 billion in cash.

Not to be outdone, Coinbase announced this month it will buy $500 million in crypto and allocate 10% of its quarterly profits into crypto assets as a way to — you guessed it — hedge (protect) its portfolio.

Coinbase says it worries about a devalued dollar and inflation. Coinbase has approximately $4 billion in cash.

Last but not least: uranium.

The recent pullback that’s nearing its end is likely weeks from ending and if you currently do not have uranium exposure in your portfolio now is the time to add. I provided uranium guidance and a new recommendation this week that you can see here.

The uranium spot price is flirting with a new 6-year high breaking $36.

The latest TD Securities supply/demand model now estimates a cumulative net -84 million pound supply shortfall over 5 years (2020-2024).

The Sprott Physical Uranium Trust (TSX: U.UN)(OTC: SRUUF) has accumulated nearly 21 million pounds of uranium for a total net asset value of approximately $789 million.

Sprott is doing for uranium what it has done for gold and silver, providing a way for retail investors to gain direct exposure to physical uranium without the headache of taking delivery.

The summer doldrums will soon be behind us, tax-loss selling seems to be starting sooner and sooner every year and I plan on making sure the portfolio is positioned where the puck is going, not where it’s been.

Get a preview of my current premium market guidance here.

Let's get it!

Gerardo Del Real

Gerardo Del Real
Editor, Resource Stock Digest

For the past decade, Gerardo Del Real has worked behind-the-scenes providing research, due diligence and advice to large institutional players, fund managers, newsletter writers and some of the most active high net worth investors in the resource space. Now, he is bringing his extensive experience to the public through Resource Stock Digest, Junior Resource MonthlyJunior Resource Trader and Junior Resource Insider. For more about Gerardo, check out his editor page.

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