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(Kitco News) After purchasing $50.9 million worth of 100-ounce gold bars in 2021, software and data analytics firm Palantir sold all of its gold holdings in less than two years for $51.1 million, citing "an immaterial realized gain," according to the company's Q1 financial filing.
"During the year ended December 31, 2021, the Company purchased $50.9 million in 100-ounce gold bars. During the three months ended March 31, 2023, the Company sold all of its gold bars for total proceeds of $51.1 million and recorded an immaterial realized gain within other income (expense), net on the condensed consolidated statements of operations," the company said.
When Palantir bought gold in Q4 of 2021, prices were trading below $1,900 an ounce. In 2023, gold began the year around that same level, but at the end of March, prices climbed sustainably above $1,900 an ounce, testing $2,000 an ounce a couple of times.
At the time of writing, spot gold was trading at 2,011.10, down 0.92% on the day.
During the purchase time, the macro environment was very different for gold. The Federal Reserve didn't begin its aggressive tightening cycle yet, stock performance was about to peak, and Bitcoin didn't crash yet, trading around its record high of $69,000.
After reporting the gold purchase in August 2021, Palantir said the move into the precious metal was prompted by worries of another black swan event when the company's cash pile was up from its stock sales.
"You have to be prepared for a future with more black swan events," Palantir COO Shyam Sankar told Bloomberg.
Palantir made no comment as to why it decided to sell all of its gold in Q1 of this year.
During the time of holding gold, Palantir's holdings withstood inflation peaking at 9.1% in June 2022, and the Fed's hiking cycle, which saw interest rates climb 5% in just over a year.
Year-to-date, spot prices are up more than 10%, with many analysts forecasting more upside potential for gold as the Fed signals a June pause in its tightening cycle.
Palantir also revealed that at the end of Q1, it held $1.62 billion in U.S. Treasury securities. "Cash equivalents primarily consist of money market funds and U.S. treasury securities with original maturities of three months or less, which are invested primarily with U.S. financial institutions," the firm's filing said.
