Bitcoin: The Preferred Investment Choice
Cathie Wood, the founder and CEO of Ark Investment Management, recently expressed her strong support for bitcoin as a long-term investment. During an interview on Bloomberg's "Merryn Talks Money" podcast, Wood was presented with the choice between gold, cash, and bitcoin as a ten-year investment. Without hesitation, Wood confidently stated that she would choose bitcoin "hands down."
Bitcoin Triumphs Over Traditional Assets
As the CEO and founder of Ark Invest, Wood has consistently been an advocate for bitcoin's potential. During the podcast, she highlighted bitcoin's ability to serve as a hedge against both inflation and deflation, similar to gold. However, Wood emphasized that bitcoin's digital nature and its status as a new asset make it even more appealing.
Wood's belief in bitcoin's potential was evident when she predicted in September 2021 that its value could reach an astonishing $500,000 within five years. Additionally, she discussed her anticipation of the metaverse, foreseeing it becoming a multi-trillion-dollar industry in the same timeframe. Wood also noted the growing interest of institutional investors in bitcoin and the preference of younger generations for the digital asset over gold.
Deflationary Economy and Bitcoin
At Ark Invest, Wood and her team foresee a significant deflationary period on the horizon for the U.S. economy, which is currently plagued with uncertainties. Wood reiterated this viewpoint during the podcast, comparing the current economic climate to the 19-teens rather than the 1970s. This perspective contrasts with the common belief that bitcoin is primarily acquired as a hedge against inflation.
Wood emphasized the transparency and decentralization of the bitcoin network, highlighting the absence of counterparty risk. In contrast, she pointed out the opacity of regional banks' operations, where the selling of securities is often used to fund the loss of deposits. Wood's endorsement of bitcoin as a transparent and secure investment option further solidifies her confidence in the digital asset.
Insights on Artificial Intelligence (AI) and Tesla
In addition to her views on bitcoin, Wood also discussed the topic of artificial intelligence (AI) and shared her insights on Tesla. As a trailblazer in the investment world, Wood's perspectives on emerging technologies and innovative companies have garnered significant attention.
Share Your Thoughts
What are your thoughts on Cathie Wood's latest insights? Do you agree with her preference for bitcoin over gold and cash? Let us know in the comments section below.
Frequently Asked Questions
How to Open a Precious Metal IRA?
The first step is to decide if you want an Individual Retirement Account (IRA). If you do, you must open the account by completing Form 8606. For you to determine the type and eligibility for which IRA, you need Form 5204. This form should not be completed more than 60 days after the account is opened. After this, you are ready to start investing. You may also choose to contribute directly from your paycheck using payroll deduction.
If you opt for a Roth IRA, you must complete Form 8903. Otherwise, the process will be identical to an ordinary IRA.
To qualify for a precious Metals IRA, there are specific requirements. You must be at least 18 years of age and have earned income to qualify for a precious metals IRA. You cannot earn more than $110,000 annually ($220,000 if married filing jointly) in any one tax year. You must also contribute regularly. These rules are applicable whether you contribute through your employer or directly from the paychecks.
You can use a precious-metals IRA to purchase gold, silver and palladium. However, you won't be able purchase physical bullion. This means you won't be allowed to trade shares of stock or bonds.
Your precious metals IRA can be used to directly invest in precious metals-related companies. This option may be offered by some IRA providers.
However, there are two significant drawbacks to investing in precious metals via an IRA. They aren't as liquid as bonds or stocks. This makes it harder to sell them when needed. They don't yield dividends like bonds and stocks. Therefore, you will lose more money than you gain over time.
How much do gold IRA fees cost?
An Individual Retirement Account (IRA) fee is $6 per month. This includes the account maintenance fees and any investment costs associated with your chosen investments.
If you wish to diversify your portfolio, you may need to pay additional fees. These fees will vary depending upon the type of IRA chosen. Some companies offer free checking, but charge monthly fees for IRAs.
Most providers also charge an annual management fee. These fees vary from 0% to 11%. The average rate is.25% each year. These rates are usually waived if you use a broker such as TD Ameritrade.
Is buying gold a good retirement plan?
Although gold investment may not seem appealing at first glance due to the high average global gold consumption, it's worth considering.
The best form of investing is physical bullion, which is the most widely used. You can also invest in gold in other ways. You should research all options thoroughly before making a decision on which option you prefer.
If you don’t have the funds to invest in safe places, such as a safe deposit box or mining equipment companies, buying shares of these companies might be a better investment. If you need cash flow from an investment, purchasing gold stocks is a good choice.
You can also invest your money in exchange-traded fund (ETFs), which give you exposure to the gold price by holding securities related to gold. These ETFs often include stocks of gold miners, precious metals refiners, and commodity trading companies.
Statistics
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
- 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)
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
- If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.com)
- (Basically, if your GDP grows by 2%, you need miners to dig 2% more gold out of the ground every year to keep prices steady.) (smartasset.com)
External Links
cftc.gov
law.cornell.edu
- 7 U.S. Code SS7 – Designation board of trade as contract marketplaces
- 26 U.S. Code SS 408 – Individual retirement accounts
wsj.com
- Saddam Hussein's InvasionHelped Uncage a Bear In 1991 – WSJ
- How do you keep your IRA Gold at Home? It's not legal – WSJ
bbb.org
How To
3 Ways To Invest in Gold For Retirement
It's crucial to understand where gold fits in your retirement strategy. You can invest in gold through your 401(k), if you have one at work. You might also be interested to invest in gold outside the workplace. You could, for example, open a custodial bank account at Fidelity Investments if your IRA (Individual Retirement Account) is open. You may also want to purchase precious metals from a reputable dealer if you don’t already have them.
These are the three rules to follow if you decide to invest in gold.
- Buy Gold With Your Cash – Do not use credit cards to purchase gold. Instead, cash in your accounts. This will help protect you against inflation and keep your purchasing power high.
- Physical Gold Coins to Own – Physical gold coin ownership is better than having a paper certificate. The reason is that it's much easier to sell physical gold coins than certificates. Physical gold coins are also free from storage fees.
- Diversify your Portfolio – Don't put all your eggs in one basket. By investing in multiple assets, you can spread your wealth. This helps reduce risk and gives you more flexibility during market volatility.
—————————————————————————————————————————————————————————————–
By: Jamie Redman
Title: Cathie Wood Endorses Bitcoin ‘Hands Down' Over Gold and Cash, Foresees Deflationary Economy
Sourced From: news.bitcoin.com/cathie-wood-endorses-bitcoin-hands-down-over-gold-and-cash-foresees-deflationary-economy/
Published Date: Mon, 06 Nov 2023 22:30:31 +0000
Leave a Reply