The Son's Disregard for Lagarde's Advice
During a town hall session with students in Frankfurt, European Central Bank (ECB) President Christine Lagarde revealed that her son went against her advice and invested in cryptocurrency. Despite her repeated warnings, he ultimately lost approximately 60% of his investment. Lagarde expressed her disappointment, stating, "He ignored me royally, which is his privilege … And he lost almost all the money that he had invested." This prompted her to have another conversation with him about the risks of crypto investing.
Lagarde's Skepticism Towards Cryptocurrencies
Lagarde, known for her skepticism towards cryptocurrencies, has consistently expressed concerns about their potential risks. Last year, she warned that crypto assets and decentralized finance (defi) could pose significant threats to financial stability. In addition, she has criticized cryptocurrencies, stating that they are "based on nothing" and are often used to evade sanctions.
The Importance of Regulation
The ECB has been advocating for global regulation of crypto assets to protect uninformed investors and prevent illicit activities such as money laundering and funding for terrorists. Lagarde emphasized that while individuals have the freedom to invest and speculate, they should not be allowed to engage in criminal activities.
The ECB's Central Bank Digital Currency (CBDC) Project
In a recent development, the ECB announced that it would be advancing its central bank digital currency (CBDC) project to the next phase. After two years of investigation, the ECB will enter the "preparation phase," which involves finalizing the digital euro rulebook and selecting providers for the development of a digital euro platform and infrastructure.
Opinions on Lagarde's Son Ignoring Her Advice
What are your thoughts on ECB President Christine Lagarde's son disregarding her warnings and investing in cryptocurrency? Share your opinions in the comments section below.
Frequently Asked Questions
Can I keep physical gold in an IRA?
Not just paper money or coins, gold is money. People have used gold as a currency for thousands of centuries to preserve their wealth and keep it safe from inflation. Gold is a part of a diversified portfolio that investors can use to protect their wealth from financial uncertainty.
Today, many Americans invest in precious metals such as gold and silver rather than stocks and bonds. Although owning gold does not guarantee that you will make money investing in it, there are many reasons to consider adding gold into your retirement portfolio.
Gold has historically performed better during financial panics than other assets. Gold prices rose nearly 100 percent between August 2011 and early 2013, while the S&P 500 fell 21 percent over the same period. Gold was one of the few assets that performed better than stocks during turbulent market conditions.
The best thing about gold investing is the fact that there's virtually no counterparty risk. Your shares will still be yours even if your stock portfolio drops. However, if you have gold, your value will rise even if the company that you invested in defaults on its loans.
Finally, gold provides liquidity. This means that you can sell gold anytime, regardless of whether or not another buyer is available. Gold is liquid and therefore it makes sense to purchase small amounts. This allows you to profit from short-term fluctuations on the gold market.
What is the value of a gold IRA
The benefits of a gold IRA are many. It's an investment vehicle that lets you diversify your portfolio. You can control how much money is deposited into each account as well as when it's withdrawn.
You also have the option to transfer funds from other retirement plans into a IRA. This allows you to easily transition if your retirement is early.
The best part? You don’t need to have any special skills to invest into gold IRAs. They are readily available at most banks and brokerages. Withdrawals can be made instantly without the need to pay fees or penalties.
That said, there are drawbacks too. Gold has always been volatile. It's important to understand the reasons you're considering investing in gold. Are you looking for growth or safety? Is it for insurance purposes or a long-term strategy? 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. You may need several ounces, depending on what you intend to do with your precious gold.
If you're planning to sell off your gold, you don't necessarily need a large amount. You can even get by with less than one ounce. However, you will not be able buy any other items with those funds.
Can I have a gold ETF in a Roth IRA
While a 401k may not offer this option for you, it is worth considering other options, such an Individual Retirement Plan (IRA).
Traditional IRAs allow contributions from both the employer and employee. You can also invest in publicly traded businesses by creating an Employee Stock Ownership Plan (ESOP).
An ESOP offers tax benefits because employees can share in the company stock and any profits that it generates. The tax rate on money that is invested in an ESOP is lower than if it was held in the employees' hands.
An Individual Retirement Annuity (IRA) is also available. An IRA lets you make regular, income-generating payments to yourself over your life. Contributions made to IRAs are not taxable.
Is gold a good choice for an investment IRA?
Any person looking to save money is well-served by gold. It is also an excellent way to diversify you portfolio. There is much more to gold than meets your eye.
It has been used throughout history as currency and it is still a very popular method of payment. It is often called “the most ancient currency in the universe.”
But gold is mined from the earth, unlike paper currencies that governments create. It's hard to find and very rare, making it extremely valuable.
The supply-demand relationship determines the gold price. When the economy is strong, people tend to spend more money, which means fewer people mine gold. The result is that gold's value increases.
On the other hand, people will save cash when the economy slows and not spend it. This results in more gold being produced, which drives down its value.
It is this reason that gold investing makes sense for businesses and individuals. You will benefit from economic growth if you invest in gold.
Also, your investments will earn you interest which can help increase your wealth. You won't lose your money if gold prices drop.
Is buying gold a good retirement plan?
Buying gold as an investment may not seem very appealing at first glance, but when you consider how much people spend on average on gold per year worldwide, it becomes worth considering.
Physical bullion bar is the best way to invest in precious metals. There are other ways to invest gold. Research all options carefully and make an informed decision about what you desire from your investments.
If you're not looking to secure your wealth, it may be worth considering purchasing shares in mining equipment or companies that extract gold. If you are looking for cash flow from your investment, buying gold stocks will work well.
ETFs are an exchange-traded investment that allows you to gain exposure to the market for gold. You hold gold-related securities and not actual gold. These ETFs can include stocks of precious metals refiners and gold miners.
Are You Ready to Invest in Gold?
How much money you have saved, and whether or not gold was an option when you first started saving will determine the answer. Consider investing in both.
You can earn potential returns on your investment of gold. This makes it a worthwhile choice for retirees.
While many investments promise fixed returns, gold is subject to fluctuations. Therefore, its value is subject to change over time.
However, this does not mean that gold should be avoided. You should just factor the fluctuations into any overall portfolio.
Another benefit to gold? It's a tangible asset. Unlike stocks and bonds, gold is easier to store. It is also easily portable.
You can always access your gold if it is stored in a secure place. You don't have to pay storage fees for physical gold.
Investing in gold can help protect against inflation. Gold prices are likely to rise with other commodities so it is a good way of protecting against rising costs.
Also, you'll reap the benefits of having some savings invested in something with a stable value. Gold rises in the face of a falling stock market.
Another benefit to investing in gold? You can always sell it. As with stocks, your position can be liquidated whenever you require cash. You don't even need to wait for your retirement.
If you do decide to invest in gold, make sure to diversify your holdings. Do not put all your eggs in one basket.
Don't purchase too much at once. Begin by buying a few grams. Add more as you're able.
Don't expect to be rich overnight. It's not to get rich quickly, but to accumulate enough wealth to no longer need Social Security benefits.
Gold may not be the most attractive investment, but it could be a great complement to any retirement strategy.
What are the advantages of a gold IRA
The best way to save money for retirement is to place it in an Individual Retirement Account. It's tax-deferred until you withdraw it. You can decide how much money you withdraw each year. There are many types of IRAs. Some are better suited to college savings. Some are for investors who seek higher returns. Roth IRAs permit individuals to contribute after the age 59 1/2. Any earnings earned at retirement are subject to tax. The earnings earned after they withdraw the funds aren't subject to any tax. This type of account might be a good choice if your goal is to retire early.
The gold IRA allows you to invest in different asset classes, which is similar to other IRAs. Unlike a regular IRA which requires taxes to be paid on gains as you wait to withdraw them, a IRA with gold allows you to invest in multiple asset classes. People who want to invest their money rather than spend it make gold IRA accounts a great option.
Another advantage to owning gold via an IRA is the ease of automatic withdraws. It means that you don’t have to remember to make deposits every month. To ensure that you never miss a payment, you could set up direct debits.
Finally, the gold investment is among the most reliable. Because it isn't tied to any particular country its value tends be steady. Even during economic turmoil the gold price tends to remain fairly stable. This makes it a great investment option to protect your savings from inflation.
Statistics
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
- You can only purchase gold bars at least 99.5% purity. (forbes.com)
- 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)
- (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)
External Links
wsj.com
- Saddam Hussein's InvasionHelped Uncage a Bear In 90 – WSJ
- How do you keep your IRA Gold at Home? It's not legal – WSJ
irs.gov
finance.yahoo.com
forbes.com
- Gold IRA – Add Sparkle to Your Retirement Nest Egg
- Understanding China's Evergrande Crisis – Forbes Advisor
How To
The History of Gold as an Asset
From the beginning of history, gold was a popular currency. It was universally accepted and loved for its beauty, durability, purity and divisibility. Aside from its inherent value, it could be traded internationally. Because there were no internationally recognized standards for measuring and weighing gold, the different weights of this metal could be used worldwide. For example, one pound sterling in England equals 24 carats; one livre tournois equals 25 carats; one mark equals 28 carats; and so on.
In the 1860s the United States began issuing American currency made up 90% copper (10% zinc) and 0.942 gold (0.942 pure). This led to a decrease of demand for foreign currencies which in turn caused their prices to rise. In this period, large amounts of gold coin were minted by the United States, which caused the gold price to drop. They needed to pay off debt because they had too much money coming into circulation. They sold some of their excess gold to Europe to pay off the debt.
Most European countries distrusted the U.S. Dollar and began to accept gold as payment. However, many European nations stopped using gold to pay after World War I and started using paper currency instead. The price of gold rose significantly over the years. Even though the price of gold fluctuates, it remains one the best investments you can make.
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By: Kevin Helms
Title: ECB President Christine Lagarde's Son Ignored Her Warnings and Lost 60% in Crypto Investment
Sourced From: news.bitcoin.com/ecb-chief-christine-lagarde-reveals-her-son-invests-in-crypto-despite-her-warnings-he-ignored-me-royally/
Published Date: Fri, 24 Nov 2023 21:30:00 +0000
