The Changing Landscape of Real Estate Investments
A Swiss Bitcoin exchange, Relai, recently revealed that an astonishing 75% of its Over-The-Counter (OTC) revenue in the final quarter of 2023 came from private clients who redirected their proceeds from real estate sales into Bitcoin. This significant shift in investment strategies among investors highlights the growing appeal of Bitcoin as an alternative asset class.
The surge in real estate investors flocking to Bitcoin can be attributed to the current upheaval in the real estate market. With the demand for real estate decreasing and the market in crisis, investors are now seeking better opportunities presented by Bitcoin. Leon Wankum, a Bitcoin expert specializing in real estate, explains, "Bitcoin, as an emerging asset class, potentially offers much higher growth potential for many investors, while the real estate market is in crisis and demand has died down."
Diversification of Investment Portfolios
The trend of diverting capital from traditional assets into Bitcoin is not limited to real estate alone. Relai reports that Bitcoin is rapidly attracting capital from traditional assets such as securities and bonds. Experts predict a similar migration once Bitcoin spot Exchange-Traded Funds (ETFs) receive regulatory approval from the Securities and Exchange Commission in the United States.
This transition is evident in Relai's year-over-year OTC volume spike of over 100%. High-net-worth individuals and companies are the driving force behind this surge, with monthly volumes through Relai Private and Relai Business increasing by 30% during Q3 2023.
"If this trend continues, we can expect to see a substantial increase in Bitcoin's market capitalization and price in the coming months and years," said Julian Liniger, CEO and co-founder of Relai. "Relai is committed to providing investors with the necessary tools and resources to navigate this evolving market. We are witnessing a growing demand for our services and are investing in our platform to meet this demand."
The Swiss Perspective
The shift from real estate to Bitcoin is particularly prominent in Switzerland, where awareness of Bitcoin's unique properties is steadily rising. Leon A. Wankum, Head of Bitcoin Strategies at oneVest Developments, explains how investors can easily convert their real estate capital into Bitcoin. He states, "The process is a lot easier and faster than most people realize. With a service like Relai, such a transaction can take as little as one day."
The migration of investment capital from real estate to Bitcoin marks a potentially monumental shift in financial paradigms. As this trend gains momentum, the Bitcoin industry is preparing itself for an influx of wealth from traditional asset classes into Bitcoin.
Frequently Asked Questions
Can the government seize your gold?
Your gold is yours, so the government cannot confiscate it. You have earned it by working hard for it. It belongs to your. This rule could be broken by exceptions. Your gold could be taken away if your crime was fraud against federal government. Also, if you owe taxes to the IRS, you can lose your precious metals. However, even though your taxes have not been paid, you can still keep your precious metals, even though they are considered the property of United States Government.
What is a Precious Metal IRA, and how can you get one?
A precious metal IRA allows you to diversify your retirement savings into gold, silver, platinum, palladium, rhodium, iridium, osmium, and other rare metals. These are “precious metals” because they are hard to find, and therefore very valuable. They are great investments for your money, and they can protect you from inflation or economic instability.
Bullion is often used to refer to precious metals. Bullion refers actually to the metal.
Bullion can be bought through many channels, including online retailers, large coins dealers, and some grocery shops.
You can invest directly in bullion with a precious metal IRA instead of buying shares of stock. This allows you to receive dividends every year.
Precious metal IRAs have no paperwork or annual fees. Instead, you pay a small percentage tax on the gains. You can also access your funds whenever it suits you.
What precious metals do you have that you can invest in for your retirement?
Gold and silver are the best precious metal investments. Both can be easily bought and sold, and have been around since forever. You should add them to your portfolio if you are looking to diversify.
Gold: Gold is one of man's oldest forms of currency. It is very stable and secure. Because of this, it's considered a good way to preserve wealth during times of uncertainty.
Silver: Investors have always loved silver. It is an excellent choice for investors who wish to avoid volatility. Silver tends instead to go up than down, which is unlike gold.
Platinum: A new form of precious metal, platinum is growing in popularity. Like gold and silver, it's very durable and resistant to corrosion. It is, however, more expensive than its competitors.
Rhodium: The catalytic converters use Rhodium. It is also used to make jewelry. It is relatively affordable when compared to other types.
Palladium: Palladium, which is a form of platinum, is less common than platinum. It is also cheaper. For these reasons, it's become a favorite among investors looking to add precious metals to their portfolios.
What is the tax on gold in an IRA
The fair market value of gold sold is the basis for tax. You don't have tax to pay when you buy or sell gold. It is not considered income. If you sell it after the purchase, you will get a tax-deductible gain if you increase the price.
For loans, gold can be used to collateral. Lenders look for the highest return when you borrow against assets. For gold, this means selling it. There's no guarantee that the lender will do this. They might just hold onto it. They might decide that they want to resell it. Either way you will lose potential profit.
To avoid losing money, only lend against gold if you intend to use it for collateral. If you don't plan to use it as collateral, it is better to let it be.
Should You Buy or Sell Gold?
Gold was considered a safety net for investors during times of economic turmoil in the past. Many people are shifting away from traditional investments like bonds or stocks to instead look toward precious metals such gold.
Gold prices have been on an upward trend over recent years, but they remain relatively low compared to other commodities such as oil and silver.
Some experts think that this could change in the near future. According to them, gold prices could soar if there is another financial crisis.
They also noted that gold is growing in popularity because of its perceived value as well as potential return.
Consider these things if you are thinking of investing in gold.
- Before you start saving money for retirement, think about whether you really need it. It's possible to save for retirement without putting your savings into gold. The added protection that gold provides when you retire is a good option.
- You should also be aware of what you are getting into before you buy gold. There are many types of gold IRA accounts. Each one offers different levels security and flexibility.
- Keep in mind that gold may not be as secure as a bank deposit. Your gold coins may be lost and you might never get them back.
So, if you're thinking about buying gold, make sure you do your research first. Make sure to protect any gold you already own.
What is the Performance of Gold as an Investment?
The supply and demand for gold affect the price of gold. Interest rates can also affect the gold price.
Due to the limited supply of gold, prices for gold are highly volatile. There is also a risk in owning gold, as you must store it somewhere.
Statistics
- If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.com)
- 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)
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.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)
- You can only purchase gold bars at least 99.5% purity. (forbes.com)
External Links
irs.gov
wsj.com
- Saddam Hussein's InvasionHelped Uncage a Bear In 90 – WSJ
- How do you keep your IRA Gold at Home? It's Not Exactly Lawful – WSJ
forbes.com
- Gold IRA: Add Some Sparkle To Your Retirement Nest Egg
- Understanding China's Evergrande Crisis – Forbes Advisor
bbb.org
How To
The best place online to buy silver and gold
Before you can buy gold, it is important to understand its workings. Precious metals like gold are similar to platinum. It's very rare and is used as money because of its durability and resistance to corrosion. It is very difficult to use and most people prefer to purchase jewelry made of it over actual bars of Gold.
There are two types today of gold coins. One is legal tender while the other is bullion. Legal tender coins are minted for circulation in a country and usually include denominations like $1, $5, $10, etc.
Bullion coins can only be used as investment currency. They increase in value due to inflation.
They aren’t exchangeable in any currency exchange. If a person purchases $100 worth of gold, 100 grams of the gold will be given to him/her. The $100 value is $100. For every dollar spent, the buyer gets 1 gram of Gold.
When looking to buy precious metals, the next thing you should be aware of is where it can be purchased. There are a few options if you wish to buy gold directly from a dealer. First, you can visit your local coin store. You could also look into eBay or other reputable websites. You may also be interested in buying gold through private sellers online.
Private sellers are individuals who offer gold for sale, either at wholesale prices or retail prices. Private sellers will charge you a 10% to 15% commission for every transaction. You would receive less money from a private buyer than you would from a coin store or eBay. However, this option is often a great choice when investing in gold since it gives you more control over the item's price.
The other option is to purchase physical gold. It is easier to store physical gold than paper certificates. But, you still have to take care of it. You need to make sure that your physical gold is safe by storing it in an impenetrable container like a vault or safety depositbox.
A bank or pawnshop can help you buy gold. A bank can provide you with a loan to cover the amount you wish to invest in gold. These are small businesses that let customers borrow money against the items they bring to them. Banks usually charge higher interest rates that pawn shops.
Finally, another way to buy gold is to simply ask someone else to do it! Selling gold can also be done easily. You can contact a company like GoldMoney.com to set up an account and receive payments right away.
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By: Nik Hoffman
Title: Real Estate Investors Are Embracing Bitcoin as a Lucrative Investment Option, Reports Swiss Exchange
Sourced From: bitcoinmagazine.com/markets/real-estate-investors-are-flocking-to-bitcoin-in-record-numbers-says-swiss-exchange
Published Date: Mon, 18 Dec 2023 14:00:00 GMT
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