BlackRock, the world's largest asset management firm managing over $10.5 trillion in assets, has launched an educational series aimed at demystifying Bitcoin, the concept of Bitcoin halving, and its impact, providing insights into the approved spot Bitcoin ETF.
Insights from BlackRock's U.S. Head of Thematic and Active ETFs
"April brings rare events this year, with the focus on the upcoming bitcoin halving – a unique occurrence that takes place every 4 years," stated Jay Jacobs, U.S. Head of Thematic and Active ETFs at BlackRock. "Discover how this event influences bitcoin's value and gain insights into investing in bitcoin ETFs."
Exploring Bitcoin through Educational Videos
BlackRock has released a series of four videos on its official website, delving into the fundamental aspects of Bitcoin as an investment. These videos aim to address common queries and concerns of investors venturing into the world of Bitcoin. The topics covered include the technology behind Bitcoin, its role in investment portfolios, strategies for securing Bitcoin, and the significance of events like the Bitcoin halving.
Understanding Bitcoin's Global Impact
On its official Bitcoin 101 webpage, BlackRock highlights Bitcoin as the most recognized and widely used cryptocurrency globally. It emphasizes Bitcoin's status as the first internet-native form of money to achieve widespread adoption, enabling peer-to-peer transactions without central intermediaries like banks.
Spot Bitcoin ETF Approval and Educational Initiative
With the recent approval of its spot Bitcoin ETF, $IBIT, BlackRock aims to leverage the growing mainstream acceptance and interest in Bitcoin. The educational initiative underscores the importance of knowledge and informed decision-making for new categories of investors entering the Bitcoin market. The ETF provides exposure to Bitcoin's price movements without the need for direct ownership of the digital asset, catering to traditional investors seeking diversification.
For more information and to explore further, visit BlackRock's website.
Frequently Asked Questions
Is a gold IRA worth interest?
It depends on how much money you put into it if you have $100,000, then yes. You will not be able to answer if your income is less than $100,000
The amount you invest in an IRA affects its ability to earn interest.
If you are putting in more than $100,000 annually for retirement savings, you should open a regular brokerage account.
There you will earn more interest, but also be exposed to higher risk investments. You don’t want to lose all of your money if the stock market crashes.
An IRA is better if you have $100,000 to invest per year. At least until the market recovers.
Which is stronger: 14k gold or sterling silver?
While gold and silver are both strong metals but sterling silver is less expensive than silver because it contains 92% pure Silver rather than 24%.
Sterling silver is also called fine silver. It is made from a combination silver and other metals, such as zinc and copper.
It is generally believed that gold is very strong. It takes tremendous pressure to split it apart. If you were to drop an object on top of a piece of gold, it would shatter into thousands of pieces instead of breaking into two halves.
Silver isn’t nearly as strong as either gold or silver. If you dropped something onto a sheet made of silver, it would most likely bend and fold easily without breaking.
Silver is usually used in jewelry and coins. Its value fluctuates based on demand and supply.
How much should precious metals be included in your portfolio?
Protect yourself against inflation by investing in physical gold. This is because you not only get the current price but also the future value when you invest precious metals. You can expect your investment to increase in value with the rise of metal prices.
You will be eligible for tax benefits if you keep your investments in place for at least five consecutive years. You will also have to pay capital gains taxes if your investments are sold after the five-year period. Learn more about how you can buy gold coins on our website.
How do I choose an IRA?
Understanding the type of account you have is the first step towards finding an IRA that suits your needs. This includes whether you are looking for a traditional IRA or Roth IRA. It is also important to determine how much money you have to invest.
The next step is to choose the best provider for you. Some providers offer both accounts while others are specialized in one.
Consider the fees that come with each option. Fees vary widely between providers and may include annual maintenance fees and other charges. A monthly fee may be charged by some providers depending on how many shares your company holds. Others charge only once per quarter.
How to open a Precious Metal IRA
An IRA to hold precious metals can be opened by opening a Roth Individual Retirement Account (IRA) that is self-directed.
This account is better compared to other types because you don’t need to pay any taxes until you withdraw the investments.
This makes it very attractive to people who want to save money but also need a tax break.
You do not have to only invest in gold and silver. You can invest anywhere you wish, as long as it is within the IRS guidelines.
People often think of silver and gold when they hear “precious metal” but there are many other precious metals.
You can find examples in palladium (platinum), rhodium (osmium), iridium and ruthenium.
There are several ways you can invest in precious metals. These include purchasing bullion coins and bars, as well as shares in mining companies.
Bullion Coins and Bars
One of the most straightforward ways to invest is to buy bullion coin and bars. Bullion can be used to refer to the physical ounces or gold or silver.
When you buy bullion coins and bars, you receive actual pieces of the metal itself.
You might not notice any changes in your pocket when you buy bullion coins or bars from a store but you will see some benefits over the long-term.
For example, you will get a tangible piece of history. Every coin and every bar has a unique story.
It is often worth less than its nominal price if you examine the face value. In 1986, the American Eagle Silver Coin was $1.00 per ounce. Today, however the American Eagle’s silver coin is worth closer to $40.00 an ounce.
Since the value of bullion has increased dramatically since its introduction, many investors prefer buying bullion coins and bullion bars rather than futures contracts.
Mining Companies
For those who want to purchase precious metals, another option is investing in shares of mining companies. When you invest in mining companies, you are investing in the company’s ability to produce gold and silver.
You will then receive dividends, which are calculated based upon the company’s profit. These dividends will then go towards paying out shareholders.
You will also benefit from the company’s growth potential. As demand for the product increases, so should the share prices of your company.
Because these stocks fluctuate in price, it’s important to diversify your portfolio. This is how you spread your risk across different companies.
However, it’s also important to remember that mining companies aren’t immune to financial loss, just like any stock market investment.
Your ownership stake could become worthless if the price of gold falls significantly.
The Bottom Line
Precious metals, such as silver and gold, can be a refuge during economic uncertainty.
However, both gold and silver are subject to wild swings in price. If you are interested in long-term investing in precious metals, open a precious Metals IRA account at a reputable firm.
This way, you can take advantage of tax advantages while benefiting from owning physical assets.
What are the 3 types of IRA?
There are three types of IRAs. There are three types of IRAs: Roth, Traditional, and SEP. Each has its own advantages and disadvantages. Each type will be covered in detail below.
Traditional Individual Retirement Accounts (IRA)
A traditional IRA allows for you to contribute pretax money to an account, where you can defer tax on contributions made now and earn interest. Withdrawals from this account are exempted from tax once you have retired.
Roth IRA
With a Roth IRA, you deposit after-tax dollars into an account, which means any earnings grow tax-free. You can also withdraw money from the account to retire your funds tax-free.
SEP IRA
This is similar to a Roth IRA but requires additional contributions from employees. These additional contributions can be taxed. However, any earnings are now tax-deferred. If you leave the company, you can convert the entire amount to a Roth IRA.
Statistics
- Silver must be 99.9% pure • (forbes.com)
- The IRS also allows American Eagle coins, even though they do not meet gold’s 99.5% purity standard. (forbes.com)
- Same tax rules as traditional IRA SEP IRA contributions in 2022 are limited to 25% of compensation or $66,000, whichever is less Before setting up a Silver IRA, understand the fees and IRS restrictions. (sltrib.com)
- If you accidentally make an improper transaction, the IRS will disallow it and count it as a withdrawal so that 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)
External Links
kitco.com
takemetothesite.com
en.wikipedia.org
wsj.com
How To
How to turn your IRA into a IRA with gold content
So you want to move your retirement savings from a traditional IRA into a gold IRA? This article will guide you through the process. Here are the steps to help you make the change.
“Rolling over” refers to the act of transferring money into an alternative type of IRA (traditional), or vice versa (gold). This is done because tax advantages go along with rolling over an account. Others prefer to invest in tangible assets, such as precious metals.
There are two types IRAs: Traditional IRAs or Roth IRAs. The difference between the two types is that Traditional IRAs let investors deduct taxes from earnings. Roth IRAs don’t allow this. If you invest $5,000 in a Traditional IRA now, then you’ll be able only to withdraw $4,000. You would still be able to keep all your money if you had the same amount invested in a Roth IRA.
This is what you need to know if you want to convert an IRA from a conventional to a IRA to a IRA with gold.
You must first decide whether you want to transfer funds from one account to another or roll over your current balance to a new account. You will pay income tax on earnings above $10,000 when you transfer money. You can rollover your IRA to avoid paying income tax until you are 59 1/2.
Once you have decided to open a new bank account, You may be asked for proof of identity (e.g., a Social Security or passport card, birth certificate, etc.). Then, you’ll fill out paperwork showing that you own the IRA. After you have completed the forms, submit them to your bank. They will verify your identity as well as give instructions on how to send wire transfers and checks.
Now comes the fun part. After you have received approval from the IRS, you will deposit cash to your new account. After you receive approval, you’ll get a letter stating that you can now begin withdrawing funds.
That’s it! Now, all you have left to do is relax and watch your wealth grow. Keep in mind that if your mind changes about converting your IRA to another type, you can simply close it and transfer any remaining balance to a new IRA.
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By: Nik Hoffman
Title: BlackRock’s Bitcoin Education Series: Understanding Bitcoin and the Implications of the Bitcoin Halving
Sourced From: bitcoinmagazine.com/business/blackrock-releases-bitcoin-education-series
Published Date: Wed, 17 Apr 2024 16:02:21 GMT
