Analytics company Palantir essentially loaded the boat on gold bars with a $50 million investment, putting a pair of leveraged ETFs from Direxion Investments in focus.
Covid-19 could once again be putting gold back on the map after it pulled back earlier this year. A rising number of cases could be spurring a move back into the safe-haven precious metal, which is what happened at the height of the pandemic in 2020.
According to a Kitco News article, the pandemic “is forcing many companies to rethink their investment strategies. And as Palantir’s cash pile grows, it has opted to buy gold.”
“Palantir Technologies Inc purchased $50.7 million worth of 100-ounce gold bars in August, according to the company’s latest earnings statement,” the article added.
“During August 2021, the Company purchased $50.7 million in 100-ounce gold bars,” Palantir said in the earnings statement.
While ETFs can provide gold exposure without actually having to store the actual commodity, Palantir is opting to do things the old-fashioned way.
“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,” the earnings statement said.
A Pair of Gold Miner ETFs to Play
As mentioned, investors can get access to pure gold with ETFs, but there are other ways to snag exposure to the precious. Gold miners can provide an alternate way for investors to get access to the movement of gold prices without the volatility of fluctuating commodity prices.
One option is the Direxion Daily Gold Miners Bull 3X ETF (NUGT). NUGT seek results equal to 200% of the daily performance of the NYSE Arca Gold Miners Index, which is comprised of publicly traded companies that operate globally in both developed and emerging markets.
Another option is the Direxion Daily Jr Gold Miners Bull 2X ETF (JNUG). JNUG gives 200% exposure to the daily performance of the MVIS Global Junior Gold Miners Index. The index includes companies from markets that are freely investable to foreign investors, including “emerging markets,” as that term is defined by the index provider.
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