In a recent turn of events, Bitcoin experienced a significant surge, reaching a three-month peak. Market positivity regarding the potential approval of several Bitcoin ETFs by the Securities and Exchange Commission (SEC) fueled this rise. As SEC Chair Gary Gensler announced, the regulator is currently scrutinizing up to ten proposals for the product. Concurrently, the commission decided to abandon its lawsuit against Ripple's (XRP) top brass.
Bitcoin's value rocketed to a multi-month zenith during the recent trading session. Market optimism revolving around the potential SEC approval of several Bitcoin ETFs spurred this surge. BTC/USD managed to surpass the $30,000 mark, reaching a high of $30,104.09 during the session. This occurred after a low of $28,449.96 on the preceding day, making today's apex the most substantial Bitcoin has reached since July 23.
Technical indicators also played their part in these gains. The relative strength index (RSI) breaking through a 69.00 ceiling was a significant contributor. At this point, the price strength is at a reading of 71.14, indicating overbought conditions. Concurrently, some minor profit-taking in the market led to Bitcoin's current trading value of $29,475.77.
Likewise, Ethereum (ETH) exhibited a positive trend, once more surpassing the $1,600 mark. Following a low of $1,553.03, ETH/USD soared to a peak of $1,628.61 during the course of the session. This surge elevated Ethereum to its highest point since the week began, when the price exceeded $1,640.
Today's surge followed the bulls' rejection of a breakout below a $1,540 support point several days ago. Now, they seem to be aiming for a resistance of $1,650. To reach this point, the RSI, currently at 51.81, needs to breach its own 55.00 ceiling.
Do you believe this positive momentum will carry on into the weekend? Share your thoughts below.
Frequently Asked Questions
How Much of Your IRA Should Include Precious Metals?
When investing in precious metals, the most important thing to know is that they aren't just for wealthy people. You don't have to be rich to invest in them. There are many methods to make money off of silver and gold investments.
You might also be interested in buying physical coins, such bullion rounds or bars. Also, you could buy shares in companies producing precious metals. Or, you might want to take advantage of an IRA rollover program offered by your retirement plan provider.
No matter what your preference, precious metals will still be of benefit to you. Even though they aren't stocks, they still offer the possibility of long-term growth.
And, unlike traditional investments, their prices tend to rise over time. So, if you decide to sell your investment down the road, you'll likely see more profit than you would with traditional investments.
What Precious Metals Can You Invest in for Retirement?
The best precious metal investments are gold and silver. They're both easy to buy and sell and have been around forever. If you want to diversify your portfolio, you should consider adding them to your list.
Gold: The oldest form of currency known to man is gold. It is very stable and secure. It's a great way to protect wealth in times of uncertainty.
Silver: Silver has been a favorite among investors for years. This is a great choice for people who want to avoid volatility. Unlike gold, silver tends to go up instead of down.
Platinum: This precious metal is also becoming more popular. It is very durable and resistant against corrosion, much like silver and gold. However, it's much more expensive than either of its counterparts.
Rhodium. Rhodium is used as a catalyst. It is also used to make jewelry. It is relatively affordable when compared to other types.
Palladium (or Palladium): Palladium can be compared to platinum, but is much more common. It's also less expensive. Investors looking to add precious and rare metals to their portfolios love it for these reasons.
What are the benefits of a Gold IRA?
It is best to put your retirement money in an Individual Retirement Account (IRA). It will be tax-deferred up until the time you withdraw it. You are in complete control of how much you take out each fiscal year. There are many types available. Some are better suited to college savings. Others are made for investors seeking higher returns. Roth IRAs let individuals contribute after age 591/2 and pay tax on any earnings at retirement. These earnings don't get taxed if they withdraw funds. This type account may make sense if it is your intention to retire early.
The gold IRA allows you to invest in different asset classes, which is similar to other IRAs. Unlike a regular IRA where you pay taxes on gains, a gold IRA doesn't require you to worry about taxation while you wait to get them. This makes gold IRA accounts excellent options for people who prefer to keep their money invested instead of spending it.
Another advantage to owning gold via an IRA is the ease of automatic withdraws. This means that you don't need to worry about making monthly deposits. To avoid missing a payment, direct debits can be set up.
Finally, the gold investment is among the most reliable. Because it isn’t tied to any specific country, gold’s value tends to stay stable. Even during economic turmoil, gold prices tend to stay relatively stable. This makes it a great investment option to protect your savings from inflation.
What are the pros & con's of a golden IRA?
An Individual Retirement Plan (IRA) has a major advantage over regular savings accounts. It doesn't tax any interest earned. An IRA is a good choice for those who want a way to save some money but don’t want the tax. However, there are also disadvantages to this type of investment.
For example, if you withdraw too much from your IRA once, you could lose all your accumulated funds. The IRS may prohibit you from withdrawing funds from your IRA before you are 59 1/2 years of age. You will likely have to pay a penalty fee if you withdraw funds from an IRA.
Another disadvantage is that you must pay fees to manage your IRA. Many banks charge between 0.5% and 2.0% per year. Other providers charge monthly management fees ranging from $10 to $50.
If you prefer your money to be kept out of a bank, then you will need insurance. Most insurers require you to own a minimum amount of gold before making a claim. Some insurers may require you to have insurance that covers losses up $500,000.
If you decide to open a gold IRA, it is important to know how much you can use. Some providers restrict the amount you can own in gold. Others allow you to pick your weight.
It is also up to you to decide whether you want to purchase physical gold or futures. The price of physical gold is higher than that of gold futures. Futures contracts offer flexibility for buying gold. They let you set up a contract that has a specific expiration.
You also need to decide the type and level of insurance coverage you want. The standard policy doesn't include theft protection or loss due to fire, flood, or earthquake. It does include coverage for damage due to natural disasters. You might consider purchasing additional coverage if your area is at high risk.
In addition to insurance, you'll need to consider the cost of storing your gold. Storage costs are not covered by insurance. Banks charge between $25 and $40 per month for safekeeping.
Before you can open a gold IRA you need to contact a qualified Custodian. A custodian is responsible for keeping track of your investments. They also ensure that you adhere to federal regulations. Custodians aren't allowed to sell your assets. Instead, they must retain them for as long and as you require.
After you've determined which type of IRA is best for you, fill out the paperwork indicating your goals. You must include information about what investments you would like to make (e.g. stocks, bonds and mutual funds). Your monthly investment goal should be stated.
After filling in the forms, please send them to the provider. The company will then review your application and mail you a letter of confirmation.
You should consult a financial planner before opening a Gold IRA. Financial planners have extensive knowledge in investing and can help determine the best type of IRA to suit your needs. They can help you find cheaper insurance options to lower your costs.
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 bars are the most popular way to invest in gold. There are many ways to invest your gold. It is best to research all options and make informed decisions based on your goals.
If you don’t have the funds to invest in safe places, such as a safe deposit box or mining equipment companies, buying shares of these companies might be a better investment. Owning gold stocks should work well if you need cash flow from your investment.
You can also put your money in exchange traded funds (ETFs). These funds allow you to be exposed to the price and value of gold by holding gold related securities. These ETFs usually include stocks of precious metals refiners or gold miners.
- 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)
- 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)
- 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)
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
- Saddam Hussein's InvasionHelped Uncage a Bear in 1990 – WSJ
- How do you keep your IRA Gold at Home? It's not legal – WSJ
- Do You Need a Gold IRA to Get Retirement?
- What are the Options? Types, Spreads. Example. And Risk Metrics
- 7 U.S. Code SS7 – Designation board of trade as contract marketplaces
- 26 U.S. Code SS 408 – Individual retirement funds
3 Ways to Invest in Gold for Retirement
It's crucial to understand where gold fits in your retirement strategy. You can invest in gold through your 401(k), if you have one at work. You may also want to consider investing in gold outside of your workplace. A custodial account can be opened by a brokerage firm like Fidelity Investments if you already have an IRA. You might also consider purchasing precious metals directly from a trusted dealer if they are not already yours.
If you do invest in gold, follow these three simple rules:
- Buy Gold with Your Money – You don't need credit cards, or to borrow money to finance your investments. Instead, put cash into your accounts. This will protect you from inflation and help keep your purchasing power high.
- Physical Gold Coins to Own – Physical gold coin ownership is better than having a paper certificate. The reason for this is that physical gold coins are much more easily sold than certificates. You don't have to store physical gold coins.
- Diversify your Portfolio. Also, diversify your wealth and invest in different assets. This will reduce your risk and give you more flexibility in times of market volatility.
By: Eliman Dambell
Title: Bitcoin and Ethereum Analysis: BTC Exceeds $30,000 Amid Anticipations of ETF Approval
Sourced From: news.bitcoin.com/bitcoin-ethereum-technical-analysis-btc-above-30000-as-etf-hopes-intensify/
Published Date: Fri, 20 Oct 2023 13:30:37 +0000