Bitcoin (BTC), the leading digital currency by market cap, has experienced a remarkable increase of over 100% year-to-date. This surge has generated interest in the longevity of its upward trajectory. Gareth Soloway, the head market strategist at inthemoneystocks.com, recently shared his insights on the potential duration of this rally. Additionally, Soloway discussed the upcoming meeting of the U.S. Federal Reserve and the unprecedented rise of 10-year treasury yields.
The Current Market Scenario
Despite a downturn in U.S. equities, both precious metals and the crypto markets demonstrated resilience during a recent market slump. Gareth Soloway engaged in an in-depth discussion about the U.S. and global economies with Michelle Makori, the anchor and editor-in-chief at Kitco News. During their conversation, Soloway highlighted the Federal Reserve as the current focal point of the market. He speculated on whether the central bank would choose to increase the federal funds rate. Soloway also emphasized the significance of the 10-year treasury yields surpassing 5% for the first time in 16 years, stating that it holds great importance in the psychology of the market. He further predicted a potential recession by the fourth quarter of the year, with varying consumer confidence levels among different income brackets.
Federal Reserve's Stance
Soloway expressed his views on the upcoming Federal Open Market Committee (FOMC) meeting, suggesting that the Fed might halt its rate hikes due to evident market stress. He noted that the Fed is aware of the market stress and the impact it has had on various sectors.
Bitcoin's Resilience and Potential ETF Approval
Shifting the focus to bitcoin (BTC), Soloway speculated on the possible approval of a spot bitcoin exchange-traded fund (ETF) and raised concerns about a potential sell-off triggered by this approval. Despite acknowledging bitcoin's impressive performance, he questioned its ability to withstand a significant asset sell-off in the Nasdaq, which could result in fear and panic among bitcoin holders. Soloway suggested that an ETF approval might already be factored into the current bitcoin price, potentially leading to a sell-off after the news. He predicted a potential approval by the end of the year or early in 2024.
Future Narratives for Bitcoin
Soloway pondered the future narratives that could drive bitcoin's price post-ETF approval. He drew parallels between BTC and gold, highlighting the growing acceptance of BTC as a legitimate asset class by institutional investors. In times of market turmoil, Soloway predicted a surge in demand for bitcoin, with a potential resistance level of around $47,000 per unit. However, he also warned of the possibility of bitcoin plummeting to the $15,000 range if stock markets experience a significant decline and panic ensues. Soloway emphasized the intensity of panic as an emotion and its potential impact on bitcoin's price.
In addition to monitoring bitcoin, Soloway expressed optimism about the future of gold. He predicted a potential surge in gold prices by the end of this year or in 2024, with a target range of $2,400 to $2,500. Soloway concluded his analysis by sharing his forecast for gold.
Gareth Soloway, the market strategist at inthemoneystocks.com, provided valuable insights into the potential longevity of bitcoin's rally and the future of gold prices. While his predictions offer food for thought, the market's response remains to be seen. Share your thoughts and opinions on Soloway's analysis in the comments section below.
Frequently Asked Questions
What are the fees associated with an IRA for gold?
$6 per month is the Individual Retirement Account Fee (IRA). This includes account maintenance fees and investment costs for your chosen investments.
You may have to pay additional fees if you want to diversify your portfolio. These fees vary depending on what type of IRA you choose. Some companies offer free checking accounts, but charge monthly fees to open IRA accounts.
Most providers also charge annual management costs. These fees range from 0% to 1%. The average rate is.25% each year. These rates can often be waived if a broker, such as TD Ameritrade, is involved.
Who is entitled to the gold in a IRA that holds gold?
The IRS considers any individual who holds gold “a form of income” that is 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.
While gold may be a great investment to help prevent inflation and volatility in the market, it's not wise to keep it if you won't 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's the advantage of a Gold IRA?
Many benefits come with a gold IRA. It can be used to diversify portfolios and is an investment vehicle. You have control over how much money goes into each account.
Another option is to rollover funds from another retirement account into a IRA with gold. This will allow you to transition easily if it is your decision to retire early.
The best part about gold IRAs? You don't have to be an expert. These IRAs are available at all banks and brokerage houses. Withdrawals can happen automatically, without any fees or penalties.
But there are downsides. Gold is known for being volatile in the past. So it's essential to understand why you're investing in gold. Are you looking for safety or growth? Are you trying to find safety or growth? Only when you are clear about the facts will you be able take an informed decision.
If you plan to keep your gold IRA indefinitely, you'll probably want to consider buying more than one ounce of gold. A single ounce isn't enough to cover all of your needs. Depending on the purpose of your gold, you might need more than one ounce.
If you're planning to sell off your gold, you don't necessarily need a large amount. You can even manage with one ounce. However, you will not be able buy any other items with those funds.
How much of your portfolio should be in precious metals?
This question can only be answered if we first know what precious metals are. Precious metals are those elements that have an extremely high value relative to other commodities. This makes them very valuable in terms of trading and investment. Gold is by far the most common precious metal traded today.
However, many other types of precious metals exist, including silver and platinum. The price for gold is subject to fluctuations, but stays relatively stable in times of economic turmoil. It is also not affected by inflation and depression.
The general trend is for precious metals to increase in price with the overall market. But they don't always move in tandem with one another. When the economy is in trouble, for example, gold prices tend to rise while other precious metals fall. Investors expect lower interest rates which makes bonds less appealing investments.
The opposite effect happens when the economy is strong. Investors prefer safe assets such as Treasury Bonds and demand fewer precious metals. Because they are rare, they become more pricey and lose value.
Diversifying across precious metals is a great way to maximize your investment returns. You should also diversify because precious metal prices can fluctuate and it is better to invest in multiple types of precious metals than in one.
What is a gold IRA account?
The Gold Ira Accounts are tax-free investment options for those who want to make investments in precious metals.
You can buy physical gold bullion coins at any time. You don't have a retirement date to invest in gold.
An IRA allows you to keep your gold forever. You won't have to pay taxes on your gold investments when you die.
Your gold will be passed on to your heirs, without you having to pay capital gains taxes. Your gold is not part of your estate and you don't have to include it in the final estate report.
To open a IRA for gold, you must first create an individual retirement plan (IRA). Once you've completed this step, an IRA administrator will be appointed to your account. This company acts as a mediator between you, the IRS.
Your gold IRA custody will take care of the paperwork and send the forms to IRS. This includes filing annual returns.
Once you've established your gold IRA, you'll be able to purchase gold bullion coins. Minimum deposit required is $1,000 You'll get a higher rate of interest if you deposit more.
When you withdraw your gold from your IRA, you'll pay taxes on it. 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.
You shouldn't take out more then 50% of your total IRA assets annually. You could end up with severe financial consequences.
Which precious metal is best to invest in?
This question is dependent on the amount of risk you are willing and able to accept as well as the type of return you desire. Although gold has been considered a safe investment, it is not always the most lucrative. For example, if your goal is to make quick money, gold may not suit you. Silver is a better investment if you have patience and the time to do it.
If you're not looking to make quick money, gold is probably your best choice. Silver might be a better investment option if steady returns are desired over a long period of time.
- 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)
- 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)
- 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)
- 7 U.S. Code SS7 – Designation board of trade as contract marketplaces
- 26 U.S. Code SS 408 – Individual retirement plans
- Yahoo Finance provides information about Barrick Gold Corporation's (GOLD) stock price, news, quote, and history.
How to Hold Physical Gold in an IRA
An easy way to invest gold is to buy shares from gold-producing companies. However, this method comes with many risks because there's no guarantee that these companies will continue to survive. Even if they survive, there's always the risk that they will lose money due fluctuations in gold prices.
Alternative options include buying physical gold. This requires you to either open up your account at a bank or an online bullion dealer or simply purchase gold from a reputable seller. This option has many advantages, including the ease of access (you don’t have to deal with stock markets) and the ability of making purchases at low prices. It's also easier to see how much gold you've got stored. So you can see exactly what you have paid and if you missed any taxes, you will get a receipt. You're also less susceptible to theft than investing with stocks.
However, there are disadvantages. You won't get the bank's interest rates or investment money. It won't allow you to diversify any of your holdings. Instead, you'll be stuck with what's been bought. Finally, the taxman may ask you about where you have put your gold.
BullionVault.com is the best website to learn about gold purchases in an IRA.
By: Jamie Redman
Title: Bitcoin's Longevity Examined by Market Strategist Gareth Soloway; Anticipates Gold Surge
Sourced From: news.bitcoin.com/market-expert-gareth-soloway-explores-bitcoins-future-amidst-rising-treasury-yields-and-etf-speculation/
Published Date: Fri, 27 Oct 2023 18:00:55 +0000