Australian Dollar Withdrawal Requests
The prospects of Australian creditors of the crypto exchange FTX getting all their money back recently received a boost after a judge ruled that only those who initiated Australian dollar withdrawal requests are entitled to a share of the $26 million recovered. Australian investors with crypto-to-crypto withdrawal requests will have to wait for the completion of bankruptcy proceedings in the U.S.
A recent ruling by the Victorian Supreme Court in January has increased the likelihood of Australian creditors of the crypto exchange FTX getting all their money back, a report has said. In his ruling, Judge Patricia Matthews clarified that only those who initiated Australian dollar withdrawal requests, which amounts to about 747 investors, qualify for full reimbursement.
According to a report in the Australian Financial Review, the $26 million collected by the advisory and investment firm Korda Mentha is sufficient to pay back all the 747 investors. The suggestion that Australian investors are set to be made whole follows reports that FTX has prioritized repaying creditors over reviving the platform.
Meanwhile, the Supreme Court judge ruled, however, that Australian investors with crypto-to-crypto withdrawal requests will have to wait for the completion of bankruptcy proceedings in the U.S. FTX lawyer Andrew Dietderich expressed optimism that all creditors will be made whole.
"There is still a great amount of work, and risk, between us and that result. But we believe the objective is within reach, and we have a strategy to achieve it," Dietderich reportedly told a U.S. judge.
In another development, the FTX creditor committee lawyer, Kris Hansen, reportedly emphasized that all reimbursements will be calculated based on prices prevailing at the time of the bankruptcy filing. This stance means that the remarkable surge in the value of cryptocurrencies such as bitcoin (BTC) and Solana (SOL), which has soared by more than 600% since November 2022, will not directly translate into higher payouts for creditors.
While this decision has frustrated some creditors, a U.S. judge has ruled that FTX's reimbursement proposal adheres to legal standards and is above board.
What are your thoughts on this story? Let us know what you think in the comments section below.
Frequently Asked Questions
Are gold IRAs a good idea?
You should buy shares in companies that produce gold. You should buy shares in these companies to make money from investing in gold and other precious metals such as silver.
There are however two problems with owning shares directly.
You can lose money if you hold onto your stock too long. Stocks that fall are less than their underlying asset (like silver) and can end up losing more money. You could lose your money, rather than make it.
Second, you may miss out on potential profits if you wait until the market recovers before selling. So you may need to be patient and let the market recover before you profit from your gold holdings.
You can still enjoy the benefits of physical gold if your investments are separate from your finances. A gold IRA can help diversify your portfolio and protect against inflation.
You can learn more about gold investing by visiting our website.
How Much of Your IRA Should Include Precious Metals?
Protecting yourself from inflation is best done by investing in precious metals such silver and gold. It's more than just an investment in retirement. It also prepares you for any economic downturn.
While silver and gold have seen significant increases in the last few years, they are still safe investments since they don’t fluctuate as often as stocks. These materials are always in demand.
The prices of gold and silver are generally predictable and stable. They tend to increase when the economy is growing and decrease during recessions. This makes them excellent money-savers, and long-term investment options.
Ten percent should go into precious metals. This percentage can be increased if your portfolio is more diverse.
What is the most valuable precious metal?
Gold is an investment that offers high returns on its capital. It can also protect against inflation and other risks. People become more concerned about inflation and the gold price tends to go up.
It's a good idea for you to purchase futures gold. These contracts guarantee you will receive a certain amount of gold at a fixed price.
However, gold futures aren't suitable for everyone. Some people prefer to own physical gold instead.
They can trade their precious metals with others. They can also easily sell it whenever they like.
Some people would rather not pay tax on their gold. They buy gold directly from government to do this.
This process requires you to make several trips to your local post office. You will first need to convert any existing gold in coins or bars.
Then, you need to get a stamp on those coins or bars. You then send them to US Mint. There they will melt the coins or bars into new ones.
These bars and coins are stamped with the original stamps. That means that they're legal tender.
You won't need to pay taxes if gold is purchased directly from the US Mint.
Decide which precious metal you would like to invest.
Can I physically possess gold in my IRA account?
Many people wonder if they are allowed to possess physical gold within an IRA account. This is a valid question as there is no legal route to it.
But if you carefully examine the law, there's nothing stopping you from owning gold in your IRA.
The problem is that most people aren't aware of how much money they could be saving by putting their precious gold in an IRA.
It's easy to throw away gold coins but not so easy to put them in an IRA. If you decide to keep your precious metal in your own home you will have to pay two taxes. Two taxes will be charged: one to the IRS, one to the state you live in.
However, it is also possible to lose the gold in your home and pay twice tax. Why would you keep your gold in the house?
Some might argue that gold should be safe at home. You can protect your gold from theft by storing it somewhere more secure.
You shouldn't even leave your gold in your home unless you plan to visit often. If you leave your precious gold unattended thieves will easily steal it.
Better yet, store your gold inside an insured vault. You can rest assured that your gold is safe from theft, fire, earthquake, flood, and other hazards.
Another advantage to storing your gold in a vault is that you won't have to worry about paying property tax. Instead, income tax will be charged on any gains made from the sale of your precious metal.
You may be interested in an IRA if you don't want to pay taxes on your gold. With an IRA, you won't have to pay income tax even though you earn interest on your gold.
Capital gains tax doesn't apply to gold. That means you have the right to cash your investment at whatever time you choose.
And because IRAs fall under federal regulation, you won’t have any problems getting your gold transferred to another institution if you move.
The bottom line is: You can own gold in an IRA. Your fear of it being stolen is what holds you back.
Are precious-metal IRAs a good option?
How much risk you are willing to take for an IRA account's value loss will determine the answer. You can use them if your cash balance is $10,000, as long you don't expect it to grow quickly. These may not be the best option if you are looking to save for retirement over many decades and invest in assets that will increase in value (e.g. gold). These fees can reduce any gains.
Can I have gold in my IRA.
The answer is yes It is possible to add gold to your retirement plans. Because gold doesn't lose its value over time, it is an excellent investment. It also protects against inflation. It is also exempt from taxes.
Before you invest in gold, make sure to understand its differences from other investments. You cannot purchase shares of gold companies like bonds and stocks. They can't be sold.
Instead, you should convert your gold to cash. This means that you'll have to get rid of it. You cannot just keep it.
This makes gold different than other investments. With other investments, you can always sell them later. This is not true for gold.
You can't even use your gold as collateral to get loans. For example, if a mortgage is taken out, you may have to sell some of your gold in order for the loan to be paid.
So what does this mean? You can't just keep your gold forever. You'll have to turn it into cash at some point.
You don't need to worry. Open an IRA account. Then you can invest your money in gold.
Can you keep precious metals inside an IRA
The answer depends on whether or not the IRA owner is looking to diversify his holdings in gold and silver, or to keep them for safekeeping.
He has two options if he wishes to diversify. He could buy physical bars of gold and/or silver from a dealer or sell these items back to the dealer at the end of the year. However, suppose he isn't interested in selling back his precious metal investments. He should keep them, as they are perfectly safe to be stored in an IRA account.
- The IRS also allows American Eagle coins, even though they do not meet gold's 99.5% purity standard. (forbes.com)
- Depending on your financial situation, most experts recommend you invest no more than 5% to 10% of your retirement funds in precious metals. (forbes.com)
- Silver must be 99.9% pure • (forbes.com)
- You can only purchase gold bars of at least 99.5% purity. (forbes.com)
Precious Metals that have been approved by the IRA
Whether you're looking to save for retirement or invest for your next business venture, IRA-approved precious metals make great investments. Many options are available that can diversify your portfolio while protecting against inflation. These include silver coins, gold bars, and silver coins.
Precious Metal Investment Products come in two main formats. Physical bullion products such as bars and coins are considered physical assets because they exist in tangible form. However, exchange-traded fund (ETFs), which are financial instruments, track the price movement of an underlying assets, such as gold, and can be purchased directly from the company issuing them. ETFs are traded like stocks on stock markets, so investors can purchase shares directly from the company issuing them.
There are many different types of precious metallics available to purchase. Gold and silver are often used for jewelry making and decorating, while platinum and palladium are more commonly associated with luxury items. Palladium holds its value better than that of platinum which makes it ideal to be used in industrial applications. While silver is used in industry, decorative uses are preferred over it.
Due to the expense of mining and refining natural materials, physical bullion is more expensive. But, they are generally more secure than paper currencies and provide buyers greater security. For example, consumers may lose confidence in the currency and look for alternatives when the U.S. dollar loses purchasing power. Physical bullion products on the other side do not depend upon trust between countries and companies. Instead, they are backed up by central banks and governments giving customers peace-of-mind.
According to supply and demand, gold prices can fluctuate. When demand increases, the price rises; conversely, when supply exceeds demand, the price drops. This dynamic opens up opportunities for investors who want to profit from fluctuations of the price gold. Investors who own physical bullion products benefit from these fluctuations because they receive a higher return on their money.
Precious metals, unlike other investments, are immune to economic recessions or changes in interest rates. The price of gold is likely to continue rising as long the demand for it remains strong. This is why precious metals are considered safe havens when times are uncertain.
The most well-known precious metals are:
- Gold – It is the oldest form of precious metallic and is sometimes called “yellow material”. While gold is a familiar name, it is an extremely rare element that is found underground. Most of the world’s gold reserves can be found in South Africa and Peru, Canada, Russia and China.
- Silver – After gold, silver is the second most precious precious metal. Silver is also mined from natural resources, just like gold. Silver, unlike gold, is often extracted from ore instead of rock formations. Because of its malleability and durability, as well resistance to tarnishing and conductivity, silver is widely used by industry and commerce. The United States makes more than 98% all of the global silver production.
- Platinum – Platinum is the third most valuable precious metal. It is used in many industries, such as fuel cells, catalytic converters and high-end medical equipment. Dental crowns, bridges, and fillings can also be made from platinum.
- Palladium: Palladium is the 4th most valuable precious metallic. Its popularity is growing rapidly among manufacturers because of its strength and stability. Palladium is also used in electronics, automobiles, aerospace, and military technology.
- Rhodium – Rhodium is the fifth most valuable precious metal. Rhodium is a rare metal, but it is highly sought-after because of its use as a catalyst for automobile engines.
- Ruthenium – Ruthenium is the sixth most valuable precious metal. Although palladium is scarce and platinum is rare, there are plenty of ruthenium. It is used to make steel and engines for aircraft, as well chemical manufacturing.
- Iridium: Iridium (the seventh most valuable precious metallic) is the seventh. Iridium is a key component in satellite technology. It is used to construct orbiting satellites that transmit television signals, telephone calls, and other communications.
- Osmium – Osmium, the eighth most precious precious metal, is also known as Osmium. Because of its extreme temperature resistance, Osmium is often used in nuclear reactors. Osmium is also used to make jewelry, medicine, and cutting tools.
- Rhenium – Rhenium has been ranked as the ninth most valuable precious metallic. Rhenium can also be used in rocketry, oil refinement, and semiconductor manufacturing.
- Iodine — Iodine has the highest value of all precious metals. Iodine is used for photography, radiography and pharmaceuticals.
By: Terence Zimwara
Title: Australian Creditors of FTX Crypto Exchange Receive Boost in Money Recovery
Sourced From: news.bitcoin.com/supreme-court-ruling-bolsters-australian-ftx-creditors-prospects-for-full-recovery/
Published Date: Fri, 02 Feb 2024 21:30:13 +0000