Gold Futures Approach $2,000
Last night, gold futures came within touching distance of $2,000, reaching $1,998.60 and closing at $1,994.40. This impressive move towards the key psychological level occurred despite the strength of the US dollar during the day. The short-term strength of both gold and the US dollar can be attributed to safe haven demand in the Middle East.
Factors Influencing Gold's Performance
Gold's recent rally may have slowed down due to better-than-expected US housing data and some positive diplomatic efforts in the Middle East. However, two upcoming reports from the US could potentially put pressure on gold. Today, the third-quarter GDP data will be released, followed by the most recent inflation statistics from the BEA and the September PCE Price Index tomorrow. The outcome of these reports may impact the decision of the FOMC regarding interest rates next week.
China's Actions and Gold Demand
China has been selling off substantial amounts of US assets, as indicated by US Treasury data. It is unclear where China is directing the proceeds, but it is interesting to note that both the People's Bank of China (PBOC) and private investors have been increasing their demand for gold during the same period. China has also taken other measures, such as issuing additional sovereign debt, to stabilize its economy. These actions highlight the concerns of the PBOC and the government about the health of the Chinese economy.
Gold's Strength Beyond Geopolitical Risk
Mainstream articles often attribute gold's recent strength to geopolitical tensions in the Middle East. While geopolitical risk does play a role, it is important to recognize that gold was already strong prior to the recent attacks and retaliation. The positive sentiment towards monetary decisions and the global economy is weak, and there is little belief in a substantial recovery. Government and monetary policy decisions are focused on managing the current situation rather than improving the economy.
The Relationship Between Gold and Interest Rates
Traditionally, the relationship between gold and interest rates has been inverse or negatively correlated. However, in the current scenario, as interest rates are rising, gold is defying this relationship. The impact of interest rate data on gold is not as significant as it once was. This observation challenges the conventional understanding of the gold and interest rate relationship.
Here are the recent AM/PM LBMA Fix prices for gold in USD, GBP, and EUR:
25-10-2023: USD 1970.15, GBP 1983.30, EUR 1625.18
24-10-2023: USD 1967.40, GBP 1963.65, EUR 1605.99
23-10-2023: USD 1980.95, GBP 1973.00, EUR 1627.94
20-10-2023: USD 1984.20, GBP 1988.50, EUR 1637.76
19-10-2023: USD 1948.65, GBP 1953.55, EUR 1610.95
18-10-2023: USD 1943.85, GBP 1955.70, EUR 1592.60
17-10-2023: USD 1923.45, GBP 1928.20, EUR 1581.27
16-10-2023: USD 1914.65, GBP 1918.05, EUR 1575.18
13-10-2023: USD 1887.00, GBP 1909.20, EUR 1546.21
12-10-2023: USD 1881.15, GBP 1874.00, EUR 1529.56
Invest in gold coins and bars and securely store them in Switzerland, London, or Singapore with GoldCore. Switzerland remains a safe-haven jurisdiction for owning precious metals. Access the Essential Guide to Storing Gold in Switzerland, our most popular guide, to learn more. Sign up to receive our award-winning market updates in your inbox.
The post Gold's Not Going Anywhere, No Matter What Happens Next appeared first on GoldCore News.
Frequently Asked Questions
What are the best ways to 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. You will also need to know how much you can invest.
Next is deciding which provider best suits your needs. Some providers offer both accounts and others only specialize in one.
You should also consider the fees associated each option. Fees may vary from one provider to another and could include annual maintenance fees as well. For example, some providers charge a monthly fee based on the number of shares you own. Others will only charge once a quarter.
Are gold and silver IRAs a good idea?
This could be a great opportunity for those who want to easily invest in both gold or silver simultaneously. However, there are many other options available as well. We are happy to answer any questions you may have about these types of investments. We are always happy to assist!
What precious metal should I invest in?
An investment in gold can yield high returns on its capital. It protects against inflation, as well as other risks. As people become worried about inflation, the value of gold tends rise.
It's a good idea to purchase gold futures. These contracts ensure that you receive a set amount of gold at a fixed rate.
But gold futures may not be right for everyone. Some people prefer physical gold.
They can trade their precious metals with others. They can also trade it anytime they like.
Some people want to avoid paying tax on their gold. They buy gold directly from government to do this.
This will require several trips to your local Post Office. First convert any existing gold into bars or coins.
Then you will need a stamp to attach the coins or bars. Then, send them to the US Mint. There they will melt the coins or bars into new ones.
These bars and coins are stamped with the original stamps. These new coins and bars are legal tender.
You won't need to pay taxes if gold is purchased directly from the US Mint.
Which precious metal would you prefer to invest in?
Which is stronger: 14k gold or sterling silver?
Both gold and silver make strong metals. Sterling silver is more affordable than sterling silver which has only 24% pure silver.
Sterling silver is also known as fine silver because it is made from a mixture of silver and other metals such as copper and zinc.
The strength of gold is generally very high. 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.
But silver isn’t nearly as sturdy as gold. If you dropped an object onto a sheet silver, it would bend and fold with no damage.
It is commonly used in coins and jewelry. Silver's value can fluctuate depending on the supply and demand.
What kind of IRA can you use to hold precious metals in?
An Individual Retirement Account (IRA) is an investment vehicle most employers and financial institutions offer. Through an IRA, you may contribute money to an account that grows tax-deferred until withdrawn.
You can save taxes by setting up an IRA and then paying them off when you retire. This allows you to save more money today and pay less taxes tomorrow.
An IRA is a tax-free way to make contributions and earn income until you withdraw the funds. There are penalties for early withdrawal if you do.
After 50 you can still make contributions to your IRA. There is no penalty. If you choose to take withdrawals from your IRA during retirement, you'll owe income taxes and a 10% federal penalty.
Withdrawals made before age 59 1/2 are subject to a 5% IRS penalty. A 3.4% IRS penalty is applicable to withdrawals made between the ages of 59 1/2 and 701/2.
An IRS penalty of 6.2% applies to withdrawals above $10,000 per year.
Is gold IRAs a good way to invest?
The best way to invest in gold is by buying shares in companies that mine for it. These companies are a great way to make money investing in precious metals like gold.
But, owning shares in direct form has two downsides:
You can lose money if you hold onto your stock too long. When stocks decline, they fall further than their underlying asset (like gold). It could lead to you losing your money, instead of making it.
You may also miss potential profits if the market recovers before you sell. It is possible to wait until the market recovers before selling your gold.
However, if you want to separate your investments from your financial affairs, physical gold can still be a great investment option. An IRA with gold can diversify and protect your portfolio against inflation.
You can find out more information about gold investing on our website.
What proportion of your portfolio should you have in precious metals
Physical gold is the best investment to protect yourself against inflation. This is because when you invest in precious metals, you buy into the future value of these assets, not just the current price. The value of your investment increases with rising prices.
You will be eligible for tax benefits if you keep your investments in place for at least five consecutive years. And if you sell them after this period, you will have to pay capital gains taxes. If you want to learn more about how to buy gold coins, visit our website.
- To qualify as IRA allowable precious metals and be accepted by STRATA, the following minimum fineness requirements must be met: Gold must be 99.5% pure, silver must be 99.9% pure, and platinum and palladium must both be 99.95% pure. (stratatrust.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)
- The maximum yearly contribution to an individual's IRAs is currently $6,000 ($7,000 for those 50 years or older), or 100% of earned income, whichever is less. (monex.com)
- The IRS also allows American Eagle coins, even though they do not meet gold's 99.5% purity standard. (forbes.com)
How to Open a Precious Metal IRA
Precious Metals are one of today's most desired investment vehicles. Because they offer higher returns than traditional investments such as stocks and bonds, they are very popular. It is worth your time to research and plan before you invest in precious metals. These are the first things you need to know if you're looking to open a precious metal IRA.
There are two types of precious metal accounts. They are paper gold and silver certificates (GSCs) and physical precious metals accounts. Each type has its advantages and disadvantages. GSCs offer easy access and trade, while physical precious metals accounts provide diversification benefits. Keep reading to find out more about these options.
Physical precious Metals accounts consist of bullion, bullion, and bars. Although diversification benefits are great, this option has drawbacks. The costs involved in buying, storing and selling precious metals can be quite high. Their large size makes it difficult to transport them between locations.
Paper gold and silver certificates, on the other hand are very affordable. In addition, they're easily accessible and traded online. They are ideal for those who don't wish to invest in precious metals. But, they're not as well-diversified as physical counterparts. Additionally, they are backed by government agencies like U.S. Mint and could lose value if inflation rates rise.
Choose the best account for you financial situation when opening a precious metal IRA. These are some factors to consider before you do this:
- Your tolerance level
- Your preferred asset-allocation strategy
- How much time will you invest?
- It is up to you whether you intend on using the funds short-term for trading purposes.
- Which type of tax treatment would you prefer
- Which precious metal(s) you'd like to invest in
- How liquid can your portfolio have to be
- Your retirement age
- You'll need somewhere to keep your precious metals
- Your income level
- Your current savings rate
- Your future goals
- Your net worth
- Consider any special circumstances that could affect your decision
- Your overall financial position
- Your preference between physical and paper assets
- Your willingness to accept risks
- Your ability to handle losses
- Your budget constraints
- Financial independence is what you want
- Your investment experience
- Your familiarity with precious and rare metals
- Your knowledge about precious metals
- Your confidence in economy
- Your personal preferences
After you've decided on the best type of precious metal IRA for you, you can start to open an accounts with a reputable broker. You can find these companies through referrals, word of mouth, or online research.
After you have opened your precious metal IRA account, you will need to decide how much money to put in it. Every precious metal IRA account will have a different minimum initial deposit amount. Some accounts will only accept $100, others will allow for you to invest as high as $50,000.
The amount you invest in your precious-metal IRA is entirely up to you, as stated above. A higher initial deposit will help you build wealth over a prolonged period. However, a smaller initial deposit might work for you if your goal is to invest less money each month.
There are many types of investments that can be purchased, as well as precious metals you can use in your IRA. The most common include:
- Gold – Bullion bars, rounds, and coins
- Silver – Rounds or coins
- Platinum – Coins
- Palladium Round and Bar Forms
- Mercury – Bar and round forms
By: Dave Russell
Title: Gold's Not Going Anywhere, No Matter What Happens Next
Sourced From: news.goldcore.com/golds-not-going-anywhere-no-matter-what-happens-next/
Published Date: Thu, 26 Oct 2023 12:05:38 +0000