As we witness the meteoric rise of gold in 2025, all eyes are on this precious metal that veteran market analyst Ed Yardeni boldly dubs the "new bitcoin." The question arises: why is gold outshining bitcoin as the ultimate safe haven asset in the face of escalating global uncertainties?
The Surging Success of Gold
Gold's Financial Triumph
Numbers don't lie. Gold has surged by a staggering 60% year-to-date, leaving bitcoin trailing behind with gains of around 20%. Recent weeks have further solidified gold's dominance, with a 4% rally while bitcoin faced a 9% dip alongside a 1% Nasdaq decrease. The current price of gold stands tall at over $4,200 per ounce, a significant leap from the $2,600 per ounce value just a year ago.
The Trump Effect
The recent escalation in gold prices can be linked to President Trump's bold moves against China in trade disputes, hinting at severe repercussions like a potential ban on Chinese cooking oil. Such actions have stirred economic uncertainty in the U.S., driving up the demand for gold as a reliable safe-haven asset.
Yardeni's Insights on Bitcoin and Gold
Bitcoin's Liquidity Woes
Yardeni sheds light on bitcoin's recent struggles, attributing its decline to liquidity strains that resulted in approximately $19 billion in liquidations of leveraged positions. This led to auto-deleveraging and wider market spreads, painting a stark contrast to gold's upward trajectory.
Gold's Promising Future
Yardeni projects a bullish outlook for gold, foreseeing it surpassing $5,000 in 2026 and potentially hitting $10,000 by the decade's end. He emphasizes how investors, seeking refuge from mounting geopolitical risks, are flocking to gold and silver as their shields of protection.
Despite bitcoin's recent rollercoaster ride, hovering around $111,000 after hitting a record high above $126,000, the market saw a significant correction. However, amidst the chaos, steadfast long-term holders held their ground. Fundamental indicators like hash rate, transaction volume, and active addresses continued their positive trends, showcasing the underlying strength of bitcoin.
Whether you're drawn to the timeless allure of gold or the cutting-edge allure of bitcoin, understanding the dynamics of these assets is crucial in navigating today's volatile financial landscape. Consider your investment goals, risk tolerance, and long-term strategies as you chart your course in the ever-evolving world of finance.
Frequently Asked Questions
What is the cost of gold IRA fees
An Individual Retirement Account (IRA) fee is $6 per month. This fee covers account maintenance fees, as well any investment costs that may be associated with your investments.
If you wish to diversify your portfolio, you may need to pay additional fees. The fees you pay will vary depending on the type of IRA that you choose. Some companies offer free checking accounts, but charge monthly fees to open IRA accounts.
A majority of providers also charge annual administration fees. These fees range between 0% and 1 percent. The average rate for a year is.25%. However, these rates are typically waived if you use a broker like TD Ameritrade.
Can the government steal your gold?
Your gold is yours, so the government cannot confiscate it. You earned it through hard work. It belongs exclusively to you. This rule may not apply to all cases. If you are convicted of fraud against the federal government, your gold can be forfeit. If you owe taxes, your precious metals could be taken away. However, if you do not pay your taxes, you can still keep your gold even though it is considered property of the United States Government.
How much money should I put into my Roth IRA?
Roth IRAs are retirement accounts where you deposit your own money tax-free. These accounts cannot be withdrawn until you turn 59 1/2. If you decide to withdraw some of your contributions, you will need to follow certain rules. You cannot touch your principal (the amount you originally deposited). You cannot withdraw more than the original amount you contributed. If you wish to withdraw more than you originally contributed, you will have to pay taxes.
The second rule is that you cannot withdraw your earnings without paying income taxes. Also, taxes will be due on any earnings you take. For example, let's say that you contribute $5,000 to your Roth IRA every year. Let's further assume you earn $10,000 annually after contributing. This would mean that you would have to pay $3,500 in federal income tax. So you would only have $6,500 left. The amount you can withdraw is limited to the original contribution.
Therefore, even if you take $4,000 out of your earnings you still owe taxes on $1,500. You would also lose half of your earnings because they are subject to another 50% tax (half off 40%). So even though you received $7,000 in Roth IRA contributions, you only received $4,000.
There are two types of Roth IRAs: Traditional and Roth. A traditional IRA allows you to deduct pre-tax contributions from your taxable income. You can withdraw your contributions plus interest from your traditional IRA when you retire. You can withdraw as much as you want from a traditional IRA.
Roth IRAs won't let you deduct your contributions. You can withdraw your entire contribution, plus accrued interests, after you retire. There is no minimum withdrawal limit, unlike traditional IRAs. Your contribution can be withdrawn at any age, not just when you reach 70 1/2.
Should You Get Gold?
In times past, gold was considered a safe haven for investors in times of economic trouble. Many people are shifting away from traditional investments like bonds or stocks to instead look toward precious metals such gold.
Although gold prices have shown an upward trend in recent years, they are still relatively low when compared to other commodities like oil and silver.
Experts believe this could change soon. Experts predict that gold prices will rise sharply in the wake of another global financial collapse.
They also point out that gold is becoming popular because of its perceived value and potential return.
These are some important things to remember if your goal is to invest in gold.
- Consider whether you will actually need the money that you are saving for retirement. It is possible to save for retirement while still investing your gold savings. Gold does offer an extra layer of protection for those who reach retirement age.
- Second, ensure you fully understand the risks involved in buying gold. Each account offers different levels of security and flexibility.
- Keep in mind that gold may not be as secure as a bank deposit. You may lose your gold coins and never be able to recover them.
So, if you're thinking about buying gold, make sure you do your research first. And if you already own gold, ensure you're doing everything possible to protect it.
What is a Precious Metal IRA and How Can You Benefit From It?
A precious metal IRA allows for you to diversify your retirement savings in gold, silver, palladium and iridium. These metals are known as “precious” because they are rare and extremely valuable. These are good investments for your cash and will help you protect yourself from economic instability and inflation.
Precious metals are often referred to as “bullion.” Bullion refers only to the actual metal.
Bullion can be purchased through many channels including online retailers and large coin dealers as well as some grocery stores.
With a precious metal IRA, you invest in bullion directly rather than purchasing shares of stock. This means you'll receive dividends every year.
Precious metal IRAs do not require paperwork nor annual fees, unlike regular IRAs. Instead, you pay only a small percentage tax on your gains. Plus, you can access your funds whenever you like.
Statistics
- (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)
- If you accidentally make an improper transaction, the IRS will disallow it and count it as a withdrawal, so you would owe income tax on the item's value and, if you are younger than 59 ½, an additional 10% early withdrawal penalty. (forbes.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)
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
External Links
forbes.com
- Gold IRA, Add Sparkle to Your Retirement Nest egg
- Understanding China's Evergrande Crisis – Forbes Advisor
law.cornell.edu
- 7 U.S. Code SS7 – Designation of boards for trade as contract markets
- 26 U.S. Code SS 408 – Individual retirement accounts
wsj.com
- Saddam Hussein's InvasionHelped Uncage a Bear In 1991 – WSJ
- Are you interested in keeping gold in your IRA at-home? It's not exactly legal – WSJ
finance.yahoo.com
How To
Online buying gold and silver is the best way to purchase it.
First, understand the basics of gold. Precious metals like gold are similar to platinum. Because of its resistance to corrosion and durability, it is very rare. It is hard to use, so most people prefer jewelry made of it to real bars of gold.
There are two types of gold coins available today – one type is legal tender, while the other is called bullion. Legal tender coins can be used for circulation within a country. These coins usually come in denominations such $1, $5 and $10.
Bullion coins can only be used as investment currency. They increase in value due to inflation.
They cannot be used in currency exchanges. For example, if a person buys $100 worth of gold, he/she gets 100 grams of gold with a value of $100. Each dollar spent by the buyer is worth 1 gram.
When you are looking to purchase gold, the next thing to know is where to get it. There are many options for buying gold directly from dealers. First off, you can go through your local coin shop. You can also try going through a reputable website like eBay. You can also look into buying gold online from private sellers.
Private sellers are individuals that offer gold at wholesale or retail prices. Private sellers charge a 10% to 15% commission per transaction. You would receive less money from a private buyer than you would from a coin store 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 option for buying gold is to invest in physical gold. You can store physical gold much more easily than you can with paper certificates. However, it still needs to be safe. You need to make sure that your physical gold is safe by storing it in an impenetrable container like a vault or safety depositbox.
You can either visit a bank, pawnshop or bank to buy gold. A bank can provide you with a loan to cover the amount you wish to invest in gold. Pawnshops are small establishments allowing customers to borrow money against items they bring. Banks typically charge higher interest rates than pawn shops.
Another way to purchase gold is to ask another person to do it. Selling gold can also be done easily. It is easy to sell gold by contacting a company like GoldMoney.com. You can create a simple account immediately and begin receiving payments.
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By: Micah Zimmerman
Title: Why Gold Shines Brighter Than Bitcoin According to Market Expert Ed Yardeni
Sourced From: bitcoinmagazine.com/markets/gold-beats-bitcoin-as-new-safe-haven
Published Date: Wed, 15 Oct 2025 18:51:51 +0000