Why Palantir and Tesla are adding gold and Bitcoin...
Palantir, the data analytics software manufacturer, has recently added $50 million of gold bars to their treasury, as disclosed in the company’s latest earnings statement.
Danielle DiMartino Booth, CEO of Quill Intelligence, said that this purchase could be mirrored by other large companies.
“These moves…are strong testaments to how far down the rabbit hole central banking, this grand experiment, has gone. They speak to the fact that there is a huge concern about the soundness of money, about the sanctity of fiat currency,” DiMartino Booth told Michelle Makori, editor-in-chief of Kitco News.
Booth added that central bankers are not picking up on such company decisions as signals that market participants have low confidence in central bank monetary policies.
When asked if more companies will follow suit, she said, “You’ve always got to have a first mover in order to have firms, corporation follow them, so yes, I do.”
On the latest Federal Open Market Committee minutes release, Booth said that while the statement hinted at Fed tapering in the foreseeable future, the central bank has not signaled raising interest rates right away.
“They’re going to wait for the process of tapering to be complete before they contemplate raising interest rates, and that is their way of saying they’re trying not to upset the financial markets,” she said.
Stock market indices dipped on Wednesday following the release of the FOMC minutes at 2:00 pm ET on tapering fears.
For more information on monetary policy objectives, inflation, and the Fed’s next moves, watch the video above. Follow Michelle Makori on Twitter: @MichelleMakori (https://twitter.com/MichelleMakori).
