In the last century alone, we’ve experienced a handful of “black swan” events. So what is it exactly?
Throughout history, we can look back at the dot-com bubble boom and bust, the Great Recession, the 9/11 terror attacks, and of course the COVID-19 pandemic.
A black swan event refers to an unpredictable situation that comes without warning and has potentially severe consequences. They’re impossible to predict and can cause catastrophic damage to an economy, impacting markets and financial stability.
If this sounds all too familiar to what we’ve experienced this last year and a half, it’s because we’ve lived through many of them.
They are easy to look back on in hindsight but they all carry their own levels of complexity and their impact is swift.
It’s hard to know how the next event will affect us until after the fact. There is no real way to predict it but that doesn’t mean we can’t prepare for them– just like this tech company is doing.
Palantir Technologies is preparing for another black swan event by stockpiling gold bars.
They recently spent $50.7 million on the precious metal just this month as part of their strategy to offset the unexpected.
The large tech company is known for its big data software that is used by governments and businesses. Their techniques include predictive analytics which analyzes current and historical facts to make predictions about the future and unknown events.
Let’s get this straight. According to Bloomberg, governments strongly embrace Palantir software because it has helped them make sense of the pandemic, the current so-called black swan.
Is there something they know that we don’t?
Holding physical gold bars is historically known to be a hedge against inflation and the dollar and this could be a sign that another black swan event is coming.
Chief operating officer Shyam Sankar said the company is embracing nontraditional currencies because they “reflect more of a worldview” adding that, “you have to be prepared for a future with more black swan events.”
Palantir’s $50.7 million worth of 100-ounce gold bars are being stored in a secure location and the company is able to take physical possession of them at any time with reasonable notice.
No one wants to believe another event could happen. It’s undoubtedly a negative experience for the large majority but they can also be financially rewarding if you’re prepared.
Gold went on to set a new record with an all-time high price while the US dollar found new lows that hadn’t been visited in over a decade.
It’s not just tech companies who believe we are due for another unpredictable event, but we choose not to spend our time speculating on the when and instead on how to plan for it.
The coronavirus pandemic has inhibited our economy and the worst of the correction may not be over. So ask yourself honestly, do you feel comfortable in your strategy if another black swan event happened today?
For those who are looking to protect their wealth and retirement, call American Hartford Gold today at 800-462-0071 to learn why thousands of Americans are turning to tangible assets like gold in these unpredictable times.