Alternative Investing Report - February 11, 2025

*as of 2/10; Sources: S&P, BTC, FTSE, DJRE, CL50

The price of gold topped $2900 per ounce for the first time, marking another all-time high as investors flocked to a stable asset in the wake of Trump’s most recent tariff threats. The precious metal is now up more than 10% already in 2025, following a 27% gain in 2024. Just last week, both UBS and Citi raised their 12-month price forecast to $3,000 per ounce, and that call might prove correct sooner rather than later.

➨ TAKEAWAY: Demand for gold rises during times of uncertainty, and the last twelve months has seen a lot of it. The precious metal also acts as an inflation hedge, so in the current - and likely future - environment of persistent inflation, it is no surprise that gold is thriving.

Vincent founder Slava Rubin and Sacra co-founder Jan-Erik Asplund looked at Neuralink, the Elon Musk-founded neurotechnology company. They talked about the company’s future prospects and path to revenue, the ethical concerns behind the technology, and the demand for all Elon-related stock.

The Swedish “buy now, pay later” giant Klarna is targeting April for its U.S. IPO after filing to go public back in November. It is seeking a $15 billion valuation, well below its peak valuation of $46 billion but above its 2022 post-bubble price of $6.7 billion . Klarna’s CEO also recently announced the company’s intention to “embrace crypto” which could both broaden its customer base and increase demand for its public offering.

➨ TAKEAWAY: A successful IPO for one of the most notable and largest private fintech companies would be a boost for the sector, which has struggled recently as funding fell by 20% last year. It could also encourage other fintech companies and prominent startups to move ahead with their own IPO plans.

🏡 Most undervalued markets: Detroit tops the list of the most undervalued markets in the U.S., followed by Cleveland and St. Louis, as the Midwest and Rust Belt are experiencing a comeback due in part to the low cost of living.

📉 M&A activity falls in January: The number of deals in January fell by 30% year-over-year to the lowest level since 2015, while deal volume measured in dollars fell by 18% year-over-year. Concerns over Trump’s proposed tariffs and anxiety over economic policy are largely responsible for the slowdown.

🤖 France’s major AI investment: On the eve of the AI Action Summit in Paris, French President Emmanuel Macron announced $112.5 billion worth of private sector AI investments in the coming years, including financing for a 1 gigawatt data center.

⚾ Most counterfeited cards: Grading company PSA’s list of the most counterfeited submissions was led by Michael Jordan’s 1986 Fleer rookie card, followed by Wayne Gretzky’s 1979 O-Pee-Chee rookie card. Newer cards tend to be harder to counterfeit, so stay cautious if there’s a deal on an older card that seems too good to be true.

🚀 Anduril to raise billions: The defense tech startup is in talks to raise $2.5 billion at a $28 billion valuation, double its last valuation of $14 billion from just six months ago. The round would be led by Peter Thiel’s Founders Fund, which would commit $1 billion of capital.

🪙 Endowments looking to crypto: U.S. endowment funds are increasing their exposure to crypto, as the rapid increase in Bitcoin’s price in the last year and current pro-crypto environment has boosted investor demand.

🎨 Saudi Arabia auction results: Sotheby’s first ever auction held in Saudi Arabia generated more than $17 million in sales, with every work by a local artist exceeding the high estimate and a Michael Jordan game-worn jersey fetching $960,000.

A 2-acre plot of land on “Billionaire’s Row” in Palm Beach, Florida, is helping the locale live up to its name with a listing price of $200 million. Next door to billionaire Steve Wynn’s estate, this property is reportedly the last remaining vacant plot of land with both private oceanfront and Intracoastal water frontage. If you think the price tag is too extravagant, a similar oceanfront lot just sold for $178 million, and as a one-of-a-kind piece of land, it might just fetch its asking price.