What to Do With Apple’s $76.2 Billion? Try iGold

As Apple (NASDAQ:AAPL) continues to grow at a torrid rate, it has amassed an enormous cash hoard – amounting to $76.2 billion. Interestingly enough, within a few quarters, this is likely to go over $100 billion.

Of course, Wall Street is speculating on what Apple will do with its rapidly growing cash balance, such as mega-acquisitions. One of the favorites is a deal for Netflix (NASDAQ:NFLX).

All in all, this would be a great play and only cost about $20 billion or so. With Netflix, Apple would get a lucrative movie streaming business with a subscription base of about 23.6 million. What’s more, the company’s rock-star CEO – Reed Hastings – could eventually replace Steve Jobs. This alone might be worth paying $20 billion.

Another intriguing transaction would be the purchase of Spotify. This likely would be dirt-cheap, as in a few billion dollars. The company, which is seamlessly integrated into Facebook, certainly would get a boost from Apple’s extensive relationships in the music industry.

Good stuff, huh? The problem is these deals probably will not happen. But why?

First, Apple rarely engages in large deals. Basically, the company prefers to build its business organically.

Besides, Apple likes to take the unconventional approach. After all, the motto of one of Jobs’ famous marketing campaigns was “Think Different.” In other words, Apple instead will probably surprise investors.

So, what are some more surprising possibilities? Well, one idea is something I call iGold.

OK, here’s the concept: As budget deficits continue to balloon and the money supply has exploded, it seems inevitable that inflation will become a big problem. The result will be a depreciation of Apple’s cash balance.

But with iGold, the company would buy roughly 48 million ounces of gold and store it under the proposed location of the new Apple mega-campus in Cupertino, Calif. It would be a cutting-edge Fort Knox and represent a smart way to hedge against inflation.

What’s more, iGold could become the basis of Apple’s mobile currency. With millions of people using iPhones and iPads, there already is a pervasive distribution footprint to create a global monetary system. But with the backing of iGold, there certainly would be lots of confidence. It definitely would have a better chance than the shaky U.S. dollar.

I agree, this does seem kind of wacky. But hey, with $76.2 billion in cash, anything’s possible.

Tom Taulli’s latest book is “All About Short Selling” and he has an upcoming book called “All About Commodities.” You can find him at Twitter account @ttaulli. He does not own a position in any of the stocks named here.