Alternative Investing Report - October 28, 2024

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*as of 10/27; Sources: S&P, BTC, FTSE, DJRE, CL50

There have been 237 venture capital funding rounds of $100 million or more so far in 2024, exceeding 2023’s total of 210. However, the number is still down considerably from the 2021 peak of 824. Somewhat surprisingly, the industry with the most megadeals has been the healthcare/biotech industry, led by a $1 billion raise by Xaira Therapeutics. In second place is AI, led by OpenAI’s $6.6 billion round, and xAI’s $6 billion round.

➨ TAKEAWAY: While VC funding has been declining overall in 2024, megadeals have made a comeback. It is not surprising that industries with high potential returns, like biotech and AI, are leading the way. There has seemingly been a flight to quality, as firms are willing to write bigger checks to fewer startups.

Gold prices hit another all-time high last week, reaching $2,758.37 per ounce before ending the week slightly lower. The price is up more than 32% this year, and demand from central banks continues to rise. The general public is getting in on the action, as well, with Costco’s 1-ounce gold bars selling out as quickly as they can stock them.

➨ TAKEAWAY: Investors tend to flock to gold during times of uncertainty, and with multiple wars plus the upcoming U.S. election, that seems to be what is driving the surge in price. In 2020, another election year, gold set record-highs, and then Bitcoin followed suit, leading some to believe that pattern will hold this year. After the high in 2020, gold prices essentially stayed flat for three years, so investor should be cautious buying in at a high point.

As we enter a new rate cycle, new opportunities are arising for real estate investors. Tomorrow at 11 AM ET, join a discussion about how best to build your portfolio in a shifting rate environment.

 🚀 Waymo’s big funding round: The Alphabet-owned self-driving company announced a $5.6 billion funding round, and will use the funds to expand its existing robotaxi services in San Francisco, Los Angeles and Phoenix, and to build new services in Austin and Atlanta.

🚘 “The Junkyard” auction: The weekend auction at RM Sotheby’s saw seven sales of over $1 million, led by the 1956 Mercedes-Benz 300 SL “Alloy” Gullwing which fetched $9.35 million, well above its high estimate of $6 million.

🪙 Tether investigation: The company behind the biggest stablecoin in the world is reportedly under criminal investigation for violations of sanctions and anti-money laundering rules, which could have a considerable impact on crypto markets.

🍌 The million-dollar banana: One of the editions of Maurizio Cattelan’s controversial conceptual art piece “Comedian,” which consisted of a banana duct-taped to a wall, sold for $120,000 in 2019. It is now up for sale, in a way, at Sotheby’s with an estimated price tag of $1 million - $1.5 million. It is not the original banana or duct tape, but the buyer will receive a roll of duct tape and one banana, and a certificate of authenticity.

🤖 Apple Intelligence launch: Apple’s highly-anticipated new AI system is debuting this week on supported iPhones, iPads and Macs, an event that CEO Tim Cook said would make their products “profoundly different.”

🏢 Ziggurat sale: The iconic Southern California “Ziggurat” government office building sold at auction for $177 million, well above the $70 million initial asking price. The landmark building is now likely to be demolished, as the 89 acre lot is the part of the property that is actually in demand.

This week: Five of the “Magnificent Seven” companies report their earnings - Alphabet, Meta, Microsoft, Apple and Amazon.

Tuesday: S&P Case Shiller Home Price Index released; FHFA House Price Index released.

Wednesday: U.S. GDP report released.

Friday: October jobs report; Heritage Auctions’ World & Ancient Coins Signature auction, featuring a 1672 Dutch coin with a $114,000 bid.

Saturday: RM Sotheby’s London auction, featuring ten potential seven-figure lots and a 1957 Jaguar XKSS with a high estimate of $14.2 million.