The U.S. Bureau of Labor Statistics recently released the Consumer Price Index for All Urban Consumers (CPI-U) report for October. The report revealed that the CPI-U remained unchanged in October, following a 0.4% increase in September. However, there were noticeable trends in consumer pricing, with shelter prices increasing and gasoline prices plummeting.
Shelter Prices Rise While Gasoline Prices Drop
The October CPI report highlighted a significant rise in the shelter index, balancing out a 5% drop in the gasoline index. As a result, the overall seasonally adjusted index for the month remained unchanged. The report also noted a 2.5% decrease in the broader energy index, which further contributed to the stabilization of consumer prices.
Food Costs Continue to Increase
The U.S. Labor Department reported that the food index saw a modest increase of 0.3% in October, continuing its upward trend from September. The cost of food at home mirrored this increase, while expenses for food consumed away from home rose slightly higher at 0.4%.
Deceleration in Consumer Price Index
Looking at the 12-month period ending in October, the all-items index rose by 3.2%. While this represents a deceleration from the previous year's increase of 3.7%, it still indicates a notable rise in consumer prices. The energy index, on the other hand, decreased by 4.5% over the past year, while the food index increased by 3.3%.
Mixed Market Reactions
The release of the CPI report had mixed effects on the stock market and cryptocurrency market. The Dow Jones Industrial Average and the Russell 2000 Index both experienced upward movements, indicating a positive response from investors. However, the overall crypto market value dipped by 0.84%, with bitcoin and Ethereum both experiencing declines.
On the other hand, the precious metals market saw growth, with gold prices increasing by 0.6% and silver surging by over 2%. This indicates that investors may be seeking alternative investments amidst the uncertain market conditions.
Uncertainty Surrounding the Federal Reserve
Following the release of the CPI report, investors remain uncertain about the next steps of the U.S. Federal Reserve. The report showed some slowing down in consumer prices, leading to speculation about the Fed's future actions. Jeffrey Roach, Chief Economist at LPL Financial, stated that despite the deceleration, the Fed will likely continue to speak hawkishly and emphasize their commitment to getting inflation down to the long-run 2% target.
What are your thoughts on the October CPI report? Share your opinions in the comments section below.
Frequently Asked Questions
Who holds 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.
The purchase of gold can protect you from inflation and price volatility. But it's not smart to hold it if your only intention is to use it.
You will need to declare the value of gold if you intend on selling it one day. This could impact how capital gains taxes you owe for cash investments.
To find out what options you have, consult an accountant or financial planner.
What is the cost of gold IRA fees
An Individual Retirement Account (IRA) fee is $6 per month. This includes account maintenance and any investment costs.
To diversify your portfolio you might need to pay additional charges. These fees vary depending on what type of IRA you choose. For example, some companies offer free checking accounts but charge monthly fees for IRA accounts.
Most providers also charge annual management costs. These fees vary from 0% to 11%. The average rate is.25% annually. These rates are usually waived if you use a broker such as TD Ameritrade.
Can the government steal your gold?
You own your gold and therefore the government cannot seize it. It's yours, and you earned it by working hard. It belongs to your. However, there may be some exceptions to this rule. For example, if you were convicted of a crime involving fraud against the federal government, you can lose your gold. Additionally, your precious metals may be forfeited if you owe the IRS taxes. However, even if you don't pay your taxes, your gold can be kept as property of the United States Government.
How to Open a Precious Metal IRA
First, decide if an Individual Retirement Account is right for you. Once you have decided to open an Individual Retirement Account (IRA), you will need to complete Form 806. Then you must fill out Form 5204 to determine what type of IRA you are eligible for. This form should not be completed more than 60 days after the account is opened. After this, you are ready to start investing. You can also contribute directly to your paycheck via payroll deduction.
To get a Roth IRA, complete Form 8903. Otherwise, the process will be identical to an ordinary IRA.
To qualify for a precious Metals IRA, there are specific requirements. The IRS states that you must be at least 18 and have earned income. You can't earn more than $110,000 per annum ($220,000 in married filing jointly) for any given tax year. And, you have to make contributions regularly. These rules apply to contributions made directly or through employer sponsorship.
A precious metals IRA can be used to invest in palladium or platinum, gold, silver, palladium or rhodium. However, you can't purchase physical bullion. This means you won't be allowed to trade shares of stock or bonds.
Your precious metals IRA may also be used to invest in precious-metal companies. This option is available from some IRA providers.
However, there are two significant drawbacks to investing in precious metals via an IRA. First, they are not as liquid or as easy to sell as stocks and bonds. They are therefore more difficult to sell when necessary. Second, they don't generate dividends like stocks and bonds. So, you'll lose money over time rather than gain it.
How does a Gold IRA account work?
For people who are looking to invest in precious materials, Gold Ira account accounts provide tax-free investments.
You can purchase physical gold bullion coins anytime. You don’t have to wait to begin investing in gold.
An IRA lets you keep your gold for life. Your gold holdings won't be subject to taxes when you pass away.
Your heirs can inherit your gold and avoid capital gains taxes. And because your gold remains outside of the estate, you aren't required to include it in your final estate report.
To open a gold IRA, you will first need to create an individual retirement account (IRA). Once you've done so, you'll be given an IRA custodian. This company acts in the role of a middleman between your IRS agent and you.
Your gold IRA custody will take care of the paperwork and send the forms to IRS. This includes filing annual reports.
After you have established your gold IRA you will be able purchase gold bullion coin. Minimum deposit required is $1,000 A higher interest rate will be offered if you invest more.
You'll have to pay taxes if you take your gold out of your IRA. You'll have to pay income taxes and a 10% penalty if you withdraw the entire amount.
However, if you only take out a small percentage, you may not have to pay taxes. There are exceptions. If you take out 30% of your total IRA assets or more, you will owe federal income taxes and a 20 percent penalty.
It is best to not take out more than 50% annually of your total IRA assets. If you do, you could face severe financial consequences.
Statistics
- You can only purchase gold bars at least 99.5% purity. (forbes.com)
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
- The price of gold jumped 131 percent from late 2007 to September 2011, when it hit a high of $1,921 an ounce, according to the World Gold Council. (aarp.org)
- If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.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)
External Links
wsj.com
- Saddam Hussein’s InvasionHelped Uncage a Bear In 1989 – WSJ
- You want to keep gold in your IRA at home? It's Not Exactly Lawful – WSJ
cftc.gov
bbb.org
investopedia.com
- Are You a Good Candidate for a Gold IRA
- What are the Options? Types, Spreads, Example and Risk Metrics
How To
Guidelines for Gold Roth IRA
You should start investing early to ensure you have enough money for retirement. Start saving as soon as possible, usually at age 50. You can continue to save throughout your career. To ensure sufficient growth, it is vital that you contribute enough each year.
Also, you want to take advantage tax-free options such as a traditional 401k, SEP IRA or SIMPLE IRA. These savings vehicles allow you the freedom to contribute without having to pay tax on your earnings until they are withdrawn. These savings vehicles can be a great option for individuals who don't qualify for employer matching funds.
It is important to save consistently over time. If you aren't contributing the maximum amount permitted, you could miss out on tax benefits.
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By: Jamie Redman
Title: October’s Inflation Report: Shelter Prices Up, Gasoline Plummets — Mixed Market Reactions Follow
Sourced From: news.bitcoin.com/octobers-inflation-report-shelter-prices-up-gasoline-plummets-mixed-market-reactions-follow/
Published Date: Tue, 14 Nov 2023 16:30:17 +0000
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