Changpeng Zhao, the CEO of leading crypto exchange Binance, recently revealed that executives of a Binance client were kidnapped and shaken down for their crypto holdings. In other news, Vancouver-Based Hive Digital has increased its mining power and Blackrock has weighed in on the topic of ethereum exchange-traded funds (ETFs). This and more just below, in the latest Bitcoin.com News Week in Review.
Binance Client Executives Kidnapped, Forced to Empty Crypto Wallets — CZ Says Total Loss Was $12.5 Million
Binance CEO Changpeng Zhao (CZ) has shared a story of how executives of a Binance client were abducted and forced to empty their crypto wallets. CZ detailed how the cryptocurrency exchange was able to track the transactions and freeze over 94% of the stolen funds.
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Blackrock Outlines Why SEC ‘Must’ Approve Spot Ethereum ETFs
The world’s largest asset manager, Blackrock, has outlined why the U.S. Securities and Exchange Commission (SEC) "must" approve spot Ethereum exchange-traded funds (ETFs). Nasdaq, which has filed with the SEC to list and trade shares of Blackrock’s spot ether ETF, believes that approval of a spot ETH ETF would be "a major win for the protection of U.S. investors" in the crypto space.
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Kevin O’Leary Warns Spot Bitcoin ETF Approval Could Be 18 Months Away
Shark Tank investor Kevin O’Leary, aka Mr. Wonderful, has cautioned that it could take another year and a half for the U.S. Securities and Exchange Commission (SEC) to approve a spot bitcoin exchange-traded fund (ETF). He emphasized that we will not see a spot bitcoin ETF in the U.S. until there is a crypto exchange that’s compliant with the SEC.
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Hive Bolsters Mining Power With Purchase of 4,800 Bitmain S19k Bitcoin Miners Ahead of 2024 Halving
On Tuesday, Hive Digital, a bitcoin mining company based in Vancouver, revealed its acquisition of 4,800 Bitmain S19k Antminer mining rigs. Hive stated that this purchase is intended to strengthen the firm and strategically position it for the anticipated reward halving.
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What are your thoughts on this week's stories? Be sure to let us know in the comments section below.
Frequently Asked Questions
Who owns the gold in a Gold IRA?
The IRS considers an individual who owns gold as holding “a form of money” subject to taxation.
To be eligible for the tax-free status, you must possess at least $10,000 gold and have had it stored for at least five consecutive years.
Owning gold can also help protect against inflation and price volatility, but it doesn't make sense to hold gold if you're not going to use it.
If you plan to sell the gold one day, you will need to report its worth. This will affect how much capital gains tax you owe on cash you have invested.
It is a good idea to consult an accountant or financial planner to learn more about your options.
Is gold a good investment IRA?
If you are looking for a way to save money, gold is a great investment. You can also diversify your portfolio by investing in gold. There is much more to gold than meets your eye.
It has been used throughout the history of currency and remains a popular payment method. It is sometimes called the “oldest currency in the world”.
Gold, unlike other paper currencies created by governments is mined directly from the earth. Because it is rare and difficult to make, it is extremely valuable.
The supply and demand factors determine how much gold is worth. The strength of the economy means people spend more, and so, there is less demand for gold. As a result, the value of gold goes up.
On the flip side, people save cash for emergencies and don't spend it. This leads to more gold being produced which decreases its value.
It is this reason that gold investing makes sense for businesses and individuals. You will benefit from economic growth if you invest in gold.
Additionally, you'll earn interest on your investments which will help you grow your wealth. If gold's value falls, you don't have to lose any of your investments.
What are the advantages of a IRA with a gold component?
There are many advantages to a gold IRA. It's an investment vehicle that lets you diversify your portfolio. You can control how much money is deposited into each account as well as when it's withdrawn.
You can also rollover funds from other retirement accounts to a gold IRA. This makes for an easy transition if you decide to retire early.
The best thing is that investing in gold IRAs doesn't require any special skills. They are readily available at most banks and brokerages. You do not need to worry about fees and penalties when you withdraw money.
There are also drawbacks. Gold is historically volatile. It's important to understand the reasons you're considering investing in gold. Do you want safety or growth? Are you looking for growth or insurance? Only once you know, that will you be able to make an informed decision.
If you are planning to keep your Gold IRA indefinitely you will want to purchase more than one ounce. A single ounce will not be sufficient to meet all your requirements. Depending on the purpose of your gold, you might need more than one ounce.
A small amount is sufficient if you plan to sell your gold. Even one ounce is enough. But, those funds will not allow you to buy anything.
Is physical gold allowed in an IRA.
Not just paper money or coins, gold is money. People have used gold as a currency for thousands of centuries to preserve their wealth and keep it safe from inflation. Today, investors use gold as part of a diversified portfolio because gold tends to do better during financial turmoil.
Many Americans now invest in precious metals. It's not guaranteed that you'll make any money investing gold, but there are several reasons it might be worthwhile to add gold to retirement funds.
One reason is that gold has historically performed better than other assets during periods of financial panic. Gold prices rose nearly 100 percent between August 2011 and early 2013, while the S&P 500 fell 21 percent over the same period. Gold was one of the few assets that performed better than stocks during turbulent market conditions.
The best thing about gold investing is the fact that there's virtually no counterparty risk. Even if your stock portfolio is down, your shares are still yours. You can still own your gold even if the company where you invested fails to pay its debt.
Gold provides liquidity. This means that you can sell gold anytime, regardless of whether or not another buyer is available. Because gold is so liquid compared to other investments, buying it in small amounts makes sense. This allows you take advantage of the short-term fluctuations that occur in the gold markets.
How much should I contribute to my Roth IRA account?
Roth IRAs are retirement accounts that allow you to withdraw your money tax-free. You can't withdraw money from these accounts before you reach the age of 59 1/2. You must adhere to certain rules if you are going to withdraw any of your contributions prior. First, you can't touch your principal (the initial amount that was deposited). This means that regardless of how much you contribute to an account, you cannot take out any more than you initially contributed. If you wish to withdraw more than you originally contributed, you will have to pay taxes.
You cannot withhold your earnings from income taxes. Withdrawing your earnings will result in you paying taxes. Let's take, for example, $5,000 in annual Roth IRA contributions. Let's say you earn $10,000 each year after contributing. This would mean that you would have to pay $3,500 in federal income tax. That leaves you with only $6,500 left. This is the maximum amount you can withdraw because you are limited to what you initially contributed.
If you took $4,000 from your earnings, you would still owe taxes for the $1,500 remaining. On top of that, you'd lose half of the earnings you had taken out because they would be taxed again at 50% (half of 40%). So even though you received $7,000 in Roth IRA contributions, you only received $4,000.
There are two types if Roth IRAs: Roth and Traditional. A traditional IRA allows you to deduct pre-tax contributions from your taxable income. Your traditional IRA can be used to withdraw your balance and interest when you are retired. There is no limit on how much you can withdraw from a traditional IRA.
Roth IRAs don't allow you deduct contributions. Once you are retired, however, you may withdraw all of your contributions plus accrued interest. Unlike a traditional IRA, there is no minimum withdrawal requirement. Your contribution can be withdrawn at any age, not just when you reach 70 1/2.
Statistics
- You can only purchase gold bars at least 99.5% purity. (forbes.com)
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
- Contribution limits$6,000 (49 and under) $7,000 (50 and up)$6,000 (49 and under) $7,000 (50 and up)$58,000 or 25% of your annual compensation (whichever is smaller) (lendedu.com)
- Indeed, several financial advisers interviewed for this article suggest you invest 5 to 15 percent of your portfolio in gold, just in case. (aarp.org)
External Links
cftc.gov
finance.yahoo.com
irs.gov
investopedia.com
How To
The best way to buy gold (or silver) online
First, understand the basics of gold. Gold is a precious metallic similar to Platinum. It's very rare and is used as money because of its durability and resistance to corrosion. It is difficult to use so people prefer to buy jewelry made from it to gold bars.
There are two types today of gold coins. One is legal tender while the other is bullion. Legal tender coins are designed for circulation in a country. They often have denominations like $1 or $5 or $10.
Bullion coin are not intended for investment. However, their value will increase with inflation.
They aren't circulated in any currency exchange systems. For example, a person who buys $100 worth or gold gets 100 grams. This gold has a $100 price. The buyer receives 1 gram of gold for every dollar spent.
Next, you need to find out where to buy gold. You have a few options to choose from if you are looking to buy gold directly through a dealer. First, go to your local coin shop. Another option is to go through a reputable site like eBay. Finally, you can look into purchasing gold through private sellers online.
Private sellers are individuals who offer to sell gold at retail or wholesale prices. Private sellers will charge you a 10% to 15% commission for every transaction. That means you would get back less money from a private seller than from a coin shop or eBay. This option is often a great one for investors in gold, as it gives you greater control over the item's value.
Another way to buy gold is by investing in physical gold. You can store physical gold much more easily than you can with paper certificates. However, it still needs to be safe. Physical gold must be kept safe in an impassible container, such as a vault.
If you are looking to purchase gold on your own, you have two options: a bank or an pawnshop. A bank will provide you with a loan that allows you to purchase the amount of gold you desire. Small establishments that allow customers to borrow money for items they have brought are called pawnshops. Banks usually charge higher interest rates that pawn shops.
A third way to buy gold? Simply ask someone else! Selling gold is also easy. Set up a simple account with GoldMoney.com and you will start receiving payments instantly.
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By: Bitcoin.com
Title: CZ Reveals Client Execs Kidnapped, Hive Increases Mining Power, Blackrock on ETH ETFs — Week in Review
Sourced From: news.bitcoin.com/cz-reveals-client-execs-kidnapped-hive-increases-mining-power-blackrock-on-eth-etfs-week-in-review/
Published Date: Sun, 19 Nov 2023 14:00:24 +0000
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