OFAC Revokes License of Minerven for Gold Transactions in International Markets
The Office of Foreign Assets Control (OFAC) has revoked the license of Minerven, the Venezuela-owned gold company, for commercializing gold in international markets. The sanctions on Minerven, which were eased in October, will be applied again on February 13, with oil and gas sanctions reported to return in April.
Background on OFAC's Decision
The U.S. Treasury Office of Foreign Assets Control (OFAC) has revoked a license that allowed CVG Compania General de Mineria de Venezuela CA (Minerven), the Venezuela state-owned gold company, to be part of gold transactions in international markets. The U.S. convened to revoke the sanctions on Minerven back in October when an agreement was reached with Maduro's government to review the participation of key opposition figures in the upcoming presidential ballot.
Unsatisfactory Venezuelan Response
However, according to the Biden Administration, the Venezuelan response has not been the one they expected, as the highest court in the country ratified the prohibition on Maria Corina Machado, the leader of the Venezuela opposition, to participate in the still undecided upcoming elections.
As a result, the transactions of Minerven will be winding down on February 13, and more sanctions will follow if there is no change in the decisions reached by the Venezuelan Supreme Tribunal.
Potential Return of Additional Sanctions
According to statements from Matthew Miller, spokesperson for the U.S. State Department, other sanctions might also return. He declared:
"The United States has revoked sanctions relief for Venezuela's gold sector. The relief for Venezuelan oil and gas sectors will be renewed in April only if Maduro representatives follow through on their commitments."
Venezuelan Government's Response
The Venezuelan government has rejected the Biden administration's behavior, with National Assembly President Jorge Rodriguez defiantly calling on accelerating the re-enactment of the oil, gas, and gold-related sanctions. Answering National Security Council spokesperson John Kirby, who stressed they had not seen any progress in the demands of the agreement, Rodriguez stated:
"Save your ultimatum, sh*t Yankees. Kirby, shove your ultimatum where it fits you best."
Gold Held in the U.K.
Maduro's government is also embroiled in a battle to regain control of roughly $2 billion in gold held in the U.K.
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Frequently Asked Questions
How much should precious metals be included in your portfolio?
To answer this question, we must first understand what precious metals are. Precious elements are those elements which have a high price relative to other commodities. They are therefore very attractive for investment and trading. Gold is by far the most common precious metal traded today.
There are however many other types, including silver, and platinum. The price of gold fluctuates, but it generally remains stable during times of economic turmoil. It also remains relatively unaffected by inflation and deflation.
In general, prices for precious metals tend increase with the overall marketplace. However, the prices of precious metals do not always move in sync with one another. For instance, gold's price will rise when the economy is weak, while precious metals prices will fall. This is because investors expect lower interest rates, making bonds less attractive investments.
In contrast, when the economy is strong, the opposite effect occurs. Investors prefer safe assets such as Treasury Bonds and demand fewer precious metals. These precious metals are rare and become more costly.
To maximize your profits when investing in precious metals, diversify across different precious metals. Because precious metals prices are subject to fluctuations, it is best to invest across multiple precious metal types, rather than focusing on one.
Can I keep a Gold ETF in a Roth IRA
A 401(k) plan may not offer this option, but you should consider other options, such as an Individual Retirement Account (IRA).
A traditional IRA allows contributions from both employee and employer. An Employee Stock Ownership Plan (ESOP) is another way to invest in publicly traded companies.
An ESOP gives employees tax advantages as they share the stock of the company and the profits it makes. The money you invest in the ESOP will be taxed at a lower rate than if it were directly held by the employee.
Also available is an Individual Retirement Annuity. An IRA lets you make regular, income-generating payments to yourself over your life. Contributions to IRAs can be made without tax.
How is gold taxed in an IRA?
The tax on the sale of gold is based on its fair market value when sold. When you purchase gold, you don't have to pay any taxes. It is not income. If you decide to make a sale of it, you'll be entitled to a taxable loss if the value goes up.
Loans can be secured with gold. When you borrow against your assets, lenders try to find the highest return possible. This often means selling gold. It's not guaranteed that the lender will do it. They might keep it. They might decide that they want to resell it. Either way, you lose potential profit.
To avoid losing money, only lend against gold if you intend to use it for collateral. You should leave it alone if you don't intend to lend against it.
Can the government take your gold
You own your gold and therefore the government cannot seize it. You worked hard to earn it. It belongs exclusively to you. There may be exceptions to this rule. You could lose your gold if convicted of fraud against a federal government agency. If you owe taxes, your precious metals could be taken away. You can keep your gold even if your taxes are not paid.
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
- 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)
- 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)
- Do You Need a Gold IRA to Get Retirement?
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- 7 U.S. Code SS 7 – Designation of boards of trade as contract markets
- 26 U.S. Code SS 408 – Individual retirement plans
The best place to buy silver or gold online
You must first understand the workings of gold before you can purchase it. Gold is a precious metal similar to platinum. It is rare and used as money due to its durability and resistance against corrosion. It's hard to use, so most people prefer buying jewelry made out of it to actual bars of gold.
There are two types currently available: legal tender and bullion. Legal tender coins are minted for circulation in a country and usually include denominations like $1, $5, $10, etc.
Bullion coin are not intended for investment. However, their value will increase with inflation.
They are not exchangeable in any currency exchange system. If a person purchases $100 worth of gold, 100 grams of the gold will be given to him/her. The $100 value is $100. The buyer receives 1 gram of gold for every dollar spent.
The next thing you should know when looking to buy gold is where to do it from. There are a few options if you wish to buy gold directly from a dealer. First, go to your local coin shop. Another option is to go through a reputable site like eBay. You may also be interested in buying gold through private sellers online.
Individuals selling gold at wholesale prices and retail prices are known as private sellers. You pay a commission fee between 10% and 15% for each transaction when you sell gold through private sellers. Private sellers will typically get you less than a coin shop, eBay or other online retailers. However, this option is often a great choice when investing in gold since it gives you more control over the item's price.
An alternative option to buying gold is to buy physical gold. You can store physical gold much more easily than you can with paper certificates. However, it still needs to be safe. It is important to keep your physical gold safe in an impenetrable box such as a vault, safety deposit box or other secure container.
You can either visit a bank, pawnshop or bank to buy gold. A bank can give you a loan up to the amount you intend to invest in Gold. Pawnshops are small establishments allowing customers to borrow money against items they bring. Banks tend to charge higher interest rates, while pawnshops are typically lower.
You can also ask for help to purchase gold. Selling gold can be as easy as selling. Contact a company such as GoldMoney.com, and you can set up a simple account and start receiving payments immediately.
By: Sergio Goschenko
Title: OFAC Revokes License of Venezuela-Owned Gold Company Minerven for International Transactions
Sourced From: news.bitcoin.com/ofac-blocks-venezuelan-gold-business-warns-about-upcoming-oil-sanctions/
Published Date: Fri, 02 Feb 2024 17:30:10 +0000