$50.7 million… That’s how much Peter Thiel’s big data company, Palantir Technologies (PLTR), just shelled out on gold bars. Palantir broke the news in an earnings statement earlier this month… During August 2021, the Company 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. That’s a head-scratcher. We’ve seen tech companies MicroStrategy (MSTR), Square (SQ), PayPal (PYPL), and Tesla (TLSA) convert billions of dollars of their cash reserves into bitcoin (BTC). But why is a bleeding-edge tech company loading up on fuddy-duddy gold? Today, I (Chris Lowe) will show you why it’s not as odd as it sounds. We’ll look at why, despite what a lot of folks believe, bitcoin and gold are “twin” assets. Plus, I’ll show you why both belong in every prudent investor’s portfolio. First, I want to welcome new readers aboard… The Daily Cut is the premium e-letter we created for all paid-up Legacy Research subscribers. Legacy is the publisher behind Teeka Tiwari, Jeff Brown, Dave Forest, Nick Giambruno, Jason Bodner, William Mikula, and Greg Wilson. My job as editor is to bring you their best ideas on how to really move the needle on your wealth. And since we launched the Cut three years ago, I’ve been urging you to own physical gold as part of a diversified portfolio. | Recommended Link | | CNBC calls "BitStocks" a "Digital Gold Rush." During the recent Bitcoin bull run, Bitcoin jumped by 900%… But one tiny group of "BitStocks" returned 5,000% on average. Nick Giambruno says, "'BitStocks' will continue to blow the doors off Bitcoin… could be the biggest investing story of the next 6-18 months." | | | -- | Gold shields your wealth in times of crisis… And although there may not be a crisis happening right now, there’s sure to be one down the road. We have a stock market that’s more richly valued than at any point since the 1990s tech bubble… Consumer price inflation is taking root… The world has more debt than ever before. Besides, as U.S. economist Hyman Minsky said, “[Even] stable economies sow the seeds of their own destruction.” That’s because stability – a sense of security – encourages people to take bigger risks. That risk eventually creates financial instability… which results in panic and crisis. That’s why gold is so important. Here’s how I put it when I first began spreading the word on gold right after we launched the Cut in August 2018… One reason you own gold and other hard assets is as “disaster insurance.” They tend to rise in price when folks are worried about rising political and economic risks. And if the world goes to hell in a handbasket, these will be the last assets left standing. We saw this after the global financial crisis in 2008… The stock market crash that followed it was a doozy. Our regular stand-in for the U.S. stock market, the S&P 500, plunged as much as 57%. Gold initially fell along with stocks, as traders sold their gold to satisfy margin calls. Then, over the next three years, it rocketed from $724 an ounce to more than $1,900 an ounce. 
In other words, gold nearly tripled in price as stocks got shellacked. | Recommended Link | | CRYPTO BUY ALERT [URGENT] -
Early backers in Ethereum are up as much as 1,007,319%. -
After seven years, Ethereum’s co-creator is launching a new crypto project… -
And this time, you can get in early. RSVP now for Jeff Brown’s first-ever crypto livestream on Wednesday, August 25th (8 p.m. ET), where he will reveal… | | | -- | Gold isn’t the only commodity that does well in crises… Prices of “hard assets” – aka commodities – tend to spike in times of crisis. Take it from colleague and international speculator Dave Forest over at Casey Research. He and his team crunched the numbers on the CRB Index. It tracks prices for a basket of 19 commodities – with 39% allocated to energy contracts, 41% to agriculture, 7% to precious metals, and 13% to industrial metals. That makes it a good bellwether for the hard-assets trade. And the pattern of price spikes is clear. Dave… The boom of the 1940s coincided with World War II – for a 295% gain in the CRB Index. The Arab oil embargo kicked off the commodities boom of the 1970s – for a 246% gain. And the commodities boom in the 2000s began right after 9/11 and the invasion of Afghanistan – for a 266% gain. The folks at Palantir are thinking along the same lines… Bloomberg asked the chief operating officer, Shyam Sankar, why the company is buying gold. His answer was, “You have to be prepared for a future with more black swan events.” Sankar is referring to unpredictable catastrophic events. Examples include World War I, the collapse of the Soviet Union, the 9/11 attacks, and the 2008 financial crisis. He’s saying Palantir doesn’t have special insight on a coming crisis. But it knows that a crisis will come. And when it does, it’ll pay to own gold. Palantir is also eyeing a bitcoin purchase… In May, a Wall Street analyst asked the company’s finance chief, Dave Glazer, an interesting question: Would Palantir consider putting bitcoin or other cryptocurrencies on its balance sheet in addition to gold? He said, “The short answer is, yes, we’re thinking about it, and we’ve even discussed it internally.” And Palantir says it welcomes both gold and bitcoin as forms of payment. That makes sense to us… A lot of folks see bitcoin and gold as rivals. (Check out the latest batch of feedback in our mailbag if you don’t believe me.) But here at the Cut, we see them as complementary. The simplest way to view bitcoin is as “digital gold”… Regular readers have heard me say this before. But bitcoin, like gold, is a hard asset. Thanks to an expensive “mining” process… and a supply schedule baked into its code… it’s hard to produce more bitcoin relative to existing supply. That makes it a good inflation-fighter. And that’s not where the similarities stop. Bitcoin, like gold, is also a bearer asset. After 50 years of govt. secrecy…Teeka Tiwari exposes the truth With a bearer asset, he who bears it owns it. Bearer assets are different from stocks, bonds, and other financial assets in that you don’t have to store them with a centralized third party. That means their value doesn’t derive from someone else’s promise to pay. You can hold bitcoin in a digital wallet only you have access to. You can store gold in a safe in your home. The chief difference between the two is the form they take. Bitcoin is digital. Gold is tangible. Otherwise, they’re essentially twins. Teeka laid this all out when he first recommended bitcoin… As you know by now if you’ve been with us for some time, Teeka is a former Wall Street vice president and hedge fund manager. In April 2016, he became the first guy in our industry to officially recommend bitcoin (along with other cryptos) to his readers, at $428 a coin. As I type, one bitcoin trades at $45,600 – a 10,554% gain for those who followed Teeka’s initial recommendation. Here’s how he put it to me when I talked to him in July 2016 for our Legacy Inner Circle advisory… We live in a time when the idea of money is changing more dramatically than at perhaps any other time in history. Up until now, we’ve had a faith in the U.S. dollar that’s really been unwavering. But that’s changing, because of the huge experiment going on among central banks. People are looking for an ultimate source of value – something a central government can’t manipulate. In fact, they’re looking for something that can’t be manipulated at all. Teeka prefers bitcoin over gold because he sees more upside ahead for bitcoin. But if bitcoin isn’t for you, that’s fine. Own gold instead. You can even follow what Palantir will likely do… and own some bitcoin along with some gold. They’re both inflation-proof bearer assets. That’s why big companies… along with millions of everyday investors… are adding them to their balance sheets. If you haven’t yet joined them, now is a great time to take the first step. You can learn all about buying gold in our free special report here. And you can download our free one-page bitcoin buying guide here. In the mailbag: “My crypto portfolio has more than tripled in three and a half years”… Longtime readers know this isn’t the first time we’ve banged the drum for gold and bitcoin here at the Cut. We see them as safe havens for your wealth. As fiat currencies around the world lose value, these are hard assets you can rely on. Not all of you agree, though. Reader Joe F. recently wrote us that “Gold is worthless.” And he reignited an explosive debate in our mailbag… Is gold worthless? No. But there are much better investments. My crypto portfolio has more than tripled in three and a half years. Gold has no place in my portfolio. I’m not wealthy enough to hold a questionable asset – compared to my current investments – in hopes it will protect me from some zombie apocalypse. Is bitcoin better than gold? Yes, but Ethereum [ETH] is even better. – Keith K. Gold has been around for thousands of years. Why would it become worthless all of a sudden? It may not keep up with crypto right now, but it will remain a store of value. I am a fan. I am not a huge fan of crypto. It was formed from nothing. There is nothing of physical value behind it. I believe blockchain technology is where finances will end up. I’m just not sure which crypto(s) will ultimately survive. It looks a lot like the dot-com era of the late ’90s. In summary, you better own both gold and bitcoin. – R.W. When they clamp down on the internet, where will bitcoin be? I think it’s almost a certainty the internet will crash. It could be a solar flare, a giant hack, or government intervention. But it will happen. – Syd H. Gold seems to have lost its luster. It’s been overpromoted. Unlike crypto, desperate governments can seize gold. They can put their dirty little claws all around it and tear it from its rightful owner. – Richard B. A modest bucket of gold would feed a small family for decades. Gold may be one of the last forms of truly private hard money in the world. How hard would it be for a government to commandeer your house or bank accounts? Poof! Gone! – Eric B. I used to buy my son gold coins as a birthday gift throughout the years. In 2019, I stopped buying him gold coins and switched to bitcoin and other cryptocurrencies. He’s in his early 20s now, and his crypto is worth nearly $30,000. His gold? Not even close. Nearly all his friends own crypto and are comfortable trading and moving it around if they need to – including across borders. Try doing that with gold. It doesn’t make sense anymore. The younger generation knows it. – Chris H. Let’s see. Bitcoin is nothing but a fraud from the get-go. It has no credibility and no stability. And it is difficult to buy or sell. Gold and silver in physical form don’t wobble in price so much. And they are easily bought and sold from credible dealers. I’m glad you trust bitcoin. Be prepared to lose everything you invest. As for me, I’ll stay with the tried and true… gold and silver. – Jeffrey L. Do you doubt bitcoin’s credibility, like Jeffrey does? Or does it point towards the future of money, like Chris says? Join the debate at feedback@legacyresearch.com. Regards, Chris Lowe
August 18, 2021
Dublin, Ireland Like what you’re reading? Send your thoughts to feedback@legacyresearch.com. IN CASE YOU MISSED IT…
Get Instant Access Click to read these free reports and automatically sign up for daily research. | 
Post a Comment
Post a Comment