Bullish bias
The Ira Epstein gold report offers commentary on global economic and geopolitical events, as well as updates on the price of gold. It is written by a veteran futures trader and the managing director of Linn & Associates. Epstein, who started out as a runner on the CME floor, also teaches futures trading and the basics of the metals markets.
Epstein expects gold prices to continue their upward trend in the coming months. One of the factors supporting this expectation is the Eurozone referendum on Greece on July 5th. If the vote is positive for Greece, it could boost the gold price further. However, gold's performance has been inconsistent and a strong Eurozone vote is no guarantee of a bullish move in the coming months.
Lack of trading recommendations
Ira Epstein's latest gold report is a bullish piece of work, but it lacks specific trading recommendations. While he acknowledges that 2011 is not a typical trading year, he says that the major forces driving trading are well-known. These factors include the U.S. hitting its debt ceiling, Europe's sovereign debt crisis, the war in Libya, and other factors that have been well-publicized. He also claims that the Fed's recent move to raise interest rates did not affect stock indices.
Epstein, who is a longtime futures trader, sees resistance in the $1,185 to $1,200 range and a downside target of $1,120 an ounce. Gold is likely to face strong resistance over the coming weeks, but that doesn't mean it will fall as far as Epstein suggests. Next week's economic calendar includes the release of retail sales data, the Michigan sentiment survey, and a press conference from the Federal Open Market Committee.
Eurozone referendum
The Italian government is set to be confirmed within days and sets a dangerous precedent for Brussels, as the country is the first founding member of the European Union to be led by populist anti-EU forces. The coalition of the far-right League and anti-establishment Five Star Movement (M5S) looks unpredictable and combustible. Meanwhile, leaked drafts of the government contract mention a conciliation committee, which could be a sign of trouble ahead.
Epstein does not respond to Reuters's requests for comment, but his lawyer told Reuters that Epstein does have a long-standing tradition of philanthropy. His work includes contributions to medical and scientific research, as well as helping to provide educational materials for children.
Eurozone futures
Ira Epstein, director of the Ira Epstein division of The Linn Group, says that gold prices will likely trade sideways next week. He noted that recent declines in gold prices may be overdone, as central banks have been easing their policies. Gold, he suggests, may be waiting for more of this easing to spur economic growth and price inflation.
Frequently Asked Questions
Is gold a good IRA investment?
For anyone who wants to save some money, gold can be a good investment. You can also diversify your portfolio by investing in gold. There is much more to gold than meets your eye.
It's been used throughout history as a currency, and even today, it remains a popular form of payment. It's sometimes called “the world's oldest money”.
But unlike paper currencies, which governments create, gold is mined out of the earth. It's hard to find and very rare, making it extremely valuable.
The supply-demand relationship determines the gold price. The economy that is strong tends to be more affluent, which means there are less gold miners. The result is that gold's value increases.
On the flip side, when the economy slows down, people hoard cash instead of spending it. This results in more gold being produced, which drives down its value.
It is this reason that gold investing makes sense for businesses and individuals. If you make an investment in gold, you can reap the economic benefits whenever the economy is growing.
Also, your investments will earn you interest which can help increase your wealth. You won't lose your money if gold prices drop.
What is the tax on gold in Roth IRAs?
The tax on an investment account is based on its current value, not what you originally paid. If you invest $1,000 in mutual funds or stocks and then later sell them, all gains are subjected to taxes.
However, if the money is deposited into a traditional IRA/401(k), the tax on the withdrawal of the money is not applicable. You pay taxes only on earnings from dividends and capital gains — which apply only to investments held longer than one year.
These accounts are subject to different rules depending on where you live. Maryland requires that you withdraw funds within 60 business days after reaching the age of 59 1/2. Massachusetts allows you to wait until April 1. And in New York, you have until age 70 1/2 . To avoid penalty fees, it is important to plan and take distributions in time to pay all your retirement savings.
Should You Buy or Sell Gold?
Gold was once considered an investment safe haven during times of economic crisis. Many people today are moving away from stocks and bonds to look at precious metals, such as gold, as a way to diversify their investments.
While gold prices have been rising in recent years they are still low relative to other commodities, such as silver and oil.
Experts think this could change quickly. Experts believe that gold prices could skyrocket in the face of another global financial crisis.
They also note that gold is increasingly popular because of its perceived intrinsic value and potential return.
If you are considering investing in gold, here are some things that you need to keep in mind.
- Consider whether you will actually need the money that you are saving for retirement. It is possible to save enough money to retire without investing in gold. That said, gold does provide an additional layer of protection when you reach retirement age.
- You should also be aware of what you are getting into before you buy gold. There are many types of gold IRA accounts. Each one offers different levels security and flexibility.
- Don't forget that gold does not offer the same safety level as a bank accounts. Losing your gold coins could result in you never being able to retrieve them.
If you are thinking of buying gold, do your research. Protect your gold if you already have it.
Can I hold a gold ETF in a Roth IRA?
Although a 401k plan might not provide this option, you should still consider other options like an Individual Retirement Account (IRA).
An IRA traditional allows both employees and employers to contribute. Another option is to invest in publicly traded corporations with an Employee Stockownership Plan (ESOP).
An ESOP offers tax benefits because employees can share in the company stock and any profits that it generates. The money you invest in the ESOP will be taxed at a lower rate than if it were directly held by the employee.
An Individual Retirement Annuity (IRA) is also available. An IRA allows for you to make regular income payments during your life. Contributions made to IRAs are not taxable.
How much gold do you need in your portfolio?
The amount you make will depend on the amount of capital you have. For a small start, $5k to $10k is a good range. You could then rent out desks and office space as your business grows. You don't need to worry about paying rent every month. You only pay one month.
It's also important to determine what type business you'll run. In my case, I am running a website creation company, so we charge clients around $1000-2000/month depending on what they order. This is why you should consider what you expect from each client if you're doing this kind of thing.
Because freelance work pays freelancers, you won't likely get a monthly income if you do freelance work. You might get paid only once every six months.
Before you can determine how much gold you'll need, you must decide what type of income you want.
I suggest starting with $1k-2k gold and building from there.
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)
- 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)
- (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)
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
External Links
bbb.org
wsj.com
- Saddam Hussein's Invasion Helped Uncage a Bear In 1990 – WSJ
- You want to keep gold in your IRA at home? It's not legal – WSJ
