In a recent exclusive interview with Bitcoin Magazine reporter Isabella Santos, Ricardo Salinas, a prominent billionaire and the honorary chairman of TV Azteca, emphasized the importance of storing wealth in Bitcoin. This marked Salinas' first Spanish-language interview on the topic, shedding light on his views regarding the cryptocurrency's potential as a safeguard against inflation and traditional financial systems.
Bitcoin as Protection Against Inflation
Salinas started the interview by addressing the pervasive issue of inflation, which he believes erodes people's savings without their consent. This concern extends beyond Mexico and Latin America, affecting economies globally. To counteract this, Salinas emphasized the value of Bitcoin as a means of protecting wealth. He highlighted its resistance to inflation and its appeal in hyperinflationary economies, which are prevalent in Latin America.
Educating People about Government Monetary Policies
Salinas stressed the importance of educating individuals about the impact of government monetary policies, which he referred to as fraudulent. Promoting Bitcoin as a tool for financial freedom, Salinas emphasized the need for people to recognize the manipulative nature of the financial system. By understanding these dynamics, individuals can make informed decisions to safeguard their wealth.
Transitioning to Bitcoin as a Store of Value
Salinas acknowledged the challenge of transitioning to Bitcoin as a store of value. He recognized the necessity for a robust custodial system in Mexico, as the country is still in the early stages of developing such infrastructure. Despite this, Salinas views Bitcoin as an important asset class, especially for long-term savings and inheritances.
Bitcoin's Role in Third-World Countries
Salinas highlighted the potential benefits of Bitcoin in third-world countries, particularly in regions experiencing hyperinflation. He emphasized the importance of individuals understanding the significance of protecting their wealth from currency debasement. By embracing Bitcoin, individuals in these nations can potentially mitigate the adverse effects of inflation and preserve their financial well-being.
Generational Differences in Perception
Salinas discussed the generational differences in perception regarding Bitcoin, particularly within his own family. He acknowledged the challenge of explaining the value of digital assets to older generations who may not grasp the concept of cryptocurrency. However, as awareness and understanding of Bitcoin continue to grow, Salinas remains optimistic about its potential for widespread adoption.
Ricardo Salinas' interview shed light on his fervent support for Bitcoin and his belief in its role as a hedge against inflation and a protector of individual wealth. As a prominent figure in the business and media world, Salinas' advocacy for Bitcoin is likely to have a significant impact on its adoption in Mexico and beyond.
Frequently Asked Questions
Is gold a good choice for an investment IRA?
For anyone who wants to save some money, gold can be a good investment. It's also a great way to diversify your portfolio. But gold has more to it than meets the eyes.
It's been used throughout history as a currency, and even today, it remains a popular form of payment. It is often called “the most ancient currency in the universe.”
But unlike paper currencies, which governments create, gold is mined out of the earth. Because it is rare and difficult to make, it is extremely valuable.
The supply and demand factors determine how much gold is worth. People tend to spend more when the economy is healthy, which means that fewer people are able to mine gold. The value of gold rises as a consequence.
On the other hand, people will save cash when the economy slows and not spend it. This causes more gold to be produced, which lowers its value.
This is why investing in gold makes sense for individuals and businesses. If you have gold to invest, you will reap the rewards when the economy expands.
Also, your investments will earn you interest which can help increase your wealth. Additionally, you won't lose cash if the gold price falls.
Is buying gold a good way to save money for retirement?
Although gold investment may not seem appealing at first glance due to the high average global gold consumption, it's worth considering.
Physical bullion is the most popular method of investing in gold. However, there are many other ways to invest in gold. You should research all options thoroughly before making a decision on which option you prefer.
For example, purchasing shares of companies that extract gold or mining equipment might be a better option if you aren't looking for a safe place to store your wealth. If you need cash flow from an investment, purchasing gold stocks is a good choice.
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 usually include stocks of precious metals refiners or gold miners.
How to Open a Precious Metal IRA
First, decide if an Individual Retirement Account is right for you. Open the account by filling out Form 8606. To determine which type of IRA you qualify for, you will need to fill out Form 5204. This form should not be completed more than 60 days after the account is opened. Once this has been completed, you can begin investing. You may also choose to contribute directly from your paycheck using payroll deduction.
To get a Roth IRA, complete Form 8903. The process for an ordinary IRA will not be affected.
To be eligible for a precious metals IRA, you will need to meet certain requirements. You must be at least 18 years of age and have earned income to qualify for a precious metals IRA. Your annual earnings cannot exceed $110,000 ($220,000 if you are married and file jointly) for any tax year. Contributions must be made regularly. These rules are applicable whether you contribute through your employer or directly from the paychecks.
An IRA for precious metals allows you to invest in gold and silver as well as platinum, rhodium, and even platinum. You can only purchase bullion in physical form. This means that you will not be allowed to trade shares or bonds.
Your precious metals IRA may also be used to invest in precious-metal companies. This option can be provided by some IRA companies.
However, investing in precious metals via an IRA has two serious drawbacks. First, they don't have the same liquidity as stocks or bonds. It is therefore harder to sell them when required. They also don't pay dividends, like stocks and bonds. Therefore, you will lose money over time and not gain it.
Can I have physical gold in my IRA
Gold is money, not just paper currency or coinage. It is an asset that people have used over thousands of years as money, and a way to protect wealth from inflation and economic uncertainties. Investors use gold today as part of their diversified portfolio, because it tends to perform better in times of financial turmoil.
Today, Americans prefer precious metals like silver and gold to stocks and bonds. It's not guaranteed that you'll make any money investing gold, but there are several reasons it might be worthwhile to add gold to retirement funds.
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 asset that outperformed stocks in turbulent market conditions.
One of the best things about investing in gold is its virtually zero counterparty risk. Your stock portfolio can fall, but you will still own your shares. Gold can be worth more than its investment in a company that defaults on its obligations.
Finally, gold offers liquidity. This means you can easily sell your gold any time, unlike other investments. It makes sense to buy small quantities of gold, as it is more liquid than other investments. This allows you to take advantage of short-term fluctuations in the gold market.
What is a Precious Metal IRA?
A precious metal IRA allows for you to diversify your retirement savings in gold, silver, palladium and iridium. These precious metals are extremely rare and valuable. These are excellent investments that will protect your wealth from inflation and economic instability.
Precious metals often refer to themselves as “bullion.” Bullion refers to the actual physical metal itself.
Bullion can be purchased through many channels including online retailers and large coin dealers as well as some grocery stores.
You can invest directly in bullion with a precious metal IRA instead of buying shares of stock. You'll get dividends each year.
Precious metal IRAs do not require paperwork nor annual fees, unlike regular IRAs. You pay only a small percentage of your gains tax. Additionally, you have access to your funds at no cost whenever you need them.
- 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)
- 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)
- Indeed, several financial advisers interviewed for this article suggest you invest 5 to 15 percent of your portfolio in gold, just in case. (aarp.org)
- Saddam Hussein’s InvasionHelped Uncage a Bear In 1989 – WSJ
- Do you want to keep your IRA gold at home? It's Not Exactly Lawful – WSJ
- 7 U.S. Code SS7 – Designation Boards of Trade as Contract Markets
- 26 U.S. Code SS 408 – Individual retirement account
- Gold IRA, Add Sparkle to Your Retirement Nest egg
- Understanding China's Evergrande Crisis – Forbes Advisor
How to Buy Physical Gold in An IRA
The most obvious way to invest in gold is by buying shares from companies producing gold. However, there are risks associated with this strategy. It isn't always possible for these companies to survive. Even if they survive, there's always the risk that they will lose money due fluctuations in gold prices.
You can also buy gold directly. You will need to either open an online or bank account or simply buy gold from a reliable seller. The advantages of this option include the ease of access (you don't need to deal with stock exchanges) and the ability to make purchases when prices are low. It is easier to view how much gold has been stored. You'll get a receipt showing exactly what you paid, so you'll know if any taxes were missed. You also have a lower chance of theft than stocks.
However, there can be some downsides. You won't get the bank's interest rates or investment money. It won't allow you to diversify any of your holdings. Instead, you'll be stuck with what's been bought. Finally, the tax man might ask questions about where you've put your gold!
BullionVault.com is the best website to learn about gold purchases in an IRA.
By: Reed Macdonald
Title: Mexican Billionaire Advocates for Bitcoin as Protection Against Inflation
Sourced From: bitcoinmagazine.com/markets/ricardo-salinas-mexican-billionaire-buy-bitcoin-sell-bonds-reject-inflation
Published Date: Tue, 24 Oct 2023 15:11:14 GMT
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