Morning Download 

Personal finance + economics + markets

Good morning investors! Hope you had a great weekend because it’s time to prepare for an exciting week!

Fun fact: Cryptocurrency scams have fallen a massive 77% from $3.3 billion to $1.1 billion over the first six months of 2023.

Today we cover:

• Time to invest in gold?

• Tesla cuts prices AGAIN.

• What is diversification?

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📊 Economy and News 

Gold and oil to get more expensive?

The violence in Israel will likely prompt a move into safe haven assets as investors closely watch events in the Middle East to gauge geopolitical risk to markets, said a leading portal. It predicts gold, which is considered a safe option, to go up as a result.

Currently moving at $1,832.59, it has gone up over 0.62% in the last 24 hours but is still down 9.29% from the high it hit six months ago.

War or not, gold and precious metals like silver are always a good option when the market looks messy.

What about oil?

“We may see a knee-jerk surge in crude prices when markets open on Monday,” Vandana Hari, CEO of Vanda Insights, told CNBC. However, the impact will be minimal and temporary unless things escalate.

Global hits:

• Amazon to go against Starlink, launches first internet satellite prototypes.

• Companies like Clorox and MGM Resorts are dealing with cyberattacks.

• China’s third-quarter IPOs decline.

📈 Stocks

S&P 500 4,258.19 (-0.13%)
DJIA 33,119.57 (-0.030%)
NASDAQ 14,723.22 (-0.36%)
VIX 18.49 (-0.48%)
* Prices as of Oct 9th, 12:20 AM UTC

Tesla cuts Model 3 and Model Y prices

Tesla cut the price of some Model 3 and Model Y versions in the U.S. after missing market expectations in the third quarter.

Here are the new prices:

• The Model 3 now costs $38,990, down from $40,240 earlier.

• The Model Y Performance sports utility vehicle, which earlier sold for $54,490, is now available for $52,490.

• The long range Model 3 now costs $45,990, down from $47,240.

• The Model 3 Performance is available for $50,990, down from $53,240.

This isn't the first time Tesla has reduced prices. It has been doing so since last year to boost demand amidst rising competition and reduced purchasing power.

The latest price cut, however, is more important as it comes right after the company announced lower than expected deliveries.

🔐 Crypto

Bitcoin $27,963.20 (0.05%)
Ethereum $1,637.02 (0.01%)
Total market cap $1.09T (-0.18%)
* Prices as of Oct 9th, 12:20 AM UTC

Here are some crypto links worth checking out:

• Stablecoin market continues to decline but there's still hope.

• The US is considering application of Electronic Fund Transfer Act to crypto accounts.

• XRP ledger hits a new high, crossing 83 million blocks yet prices remain stagnant.

• Experts expect the USD to fall and Bitcoin to hit new highs due to the current situation in the country.

💵 Personal Finance

How to invest in precious metals

Precious metals such as gold and silver are very attractive and can be a great investment option.

But why?

Because precious metals are considered a reliable hedge against inflation. Their value tends to rise as currencies like the dollar lose purchasing power due to inflation.

Not just individuals, but even central banks invest in gold due to its ability to retain value during times of economic uncertainty.

In fact, the global situation with the ongoing Russia-Ukraine war and Israel conflict is pushing gold prices while impacting other currencies.

Introducing gold to your portfolio can help reduce the risk and diversify your investment.

But how?

The traditional way of investing in gold or other precious metals is to own physical gold or silver. This, however, doesn’t mean going to a jewelry store and buying your favorite gold set. You have to be careful when purchasing gold with the intention to invest.

Gold jewelry isn’t a bad option (always) but appraising it can be complicated, and there are no guarantees you’ll be able to sell a piece for more than you bought it for. This is why you should opt for gold bullion, including coins and bars. This will give you the satisfaction of looking at it and touching it.

You can buy physical gold through an online dealer like APMEX or JM Bullion, turn to a collector, or try a pawn shop. In most cases, you will have several qualities and sizes to choose from.

Tip: Pick bars over coins because you’ll likely pay a price for a coin’s collector value rather than just its gold content. However, some coins can appreciate very quickly such as these valuable gold coins here.

Risks: Investing in physical gold can be risky as it can get stolen. You will need a safe place to keep it.

Gold futures

This option comes with leverage, which gives you the option to make money quickly. an agreement to buy or sell a certain amount of gold at a later date. The contract itself is what is traded on an exchange.

You will perks such as no management fees and higher liquidity than physical gold but you may have to pay a commission.

Risks: You can lose all or a great part of your investment due to how risky this option is.

Gold ETFs

Those who do not want the risk of gold futures and the trouble of physical gold can buy an exchange-traded fund (ETF) that tracks the commodity.

Some popular options include abrdn Physical Gold Shares ETF, SPDR Gold Shares, and iShares Gold Trust. This option offers very high liquidity as it works like stock with the option to sell any day.

In addition, you can invest in mining companies. This gives you more ways to earn money, i.e.: when gold prices rise, the stock typically goes up. Plus, you might make more money if the miner raises production over time.

Check this video for more on investing in gold:

💰 Be a Better Investor

👩🏽‍⚖️ Legal Stuff
Nothing in this newsletter is financial advice. Always do your own research and think for yourself.