Economist and gold bug Peter Schiff believes that the approval of spot bitcoin exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission (SEC) will have little impact. Schiff argues that there is no real need for a bitcoin ETF since individuals can easily buy and store bitcoin themselves. He predicts that there will be minimal investor demand and speculators who bought in anticipation of the news will likely sell once the ETFs are launched.
Bitcoin ETF Approval: A Nonevent, According to Peter Schiff
Peter Schiff, chief economist at Euro Pacific Asset Management and founder of Schiff Gold, expressed his views on the expected approval of spot bitcoin ETFs by the SEC through a series of posts on social media platform X. The first deadline for the SEC to approve a spot bitcoin ETF is January 10th for a joint proposal from Ark Invest and 21shares.
In a post on X, Schiff warned that the promise of a U.S.-listed spot bitcoin ETF has been driving up the price of bitcoin and speculative demand for years. However, he cautions that once the ETFs are launched and the anticipated institutional and new investor demand fails to materialize, the price of bitcoin may plummet. He questions the need for a bitcoin ETF when individuals can easily purchase and store bitcoin themselves without any additional fees or complexities.
Schiff Doubles Down on Bitcoin ETF Predictions
Following a 7% drop in bitcoin's price due to rumors of the SEC rejecting spot bitcoin ETF applications, Schiff reiterated his predictions in another post on X. He suggests that the bitcoin ETF will not be a "buy the rumor, sell the news" event, but rather a "buy the rumor, sell the rumor of the news" event. He believes that those who wait for the actual news to sell their bitcoin may find that there are very few speculators left to buy.
Schiff also does not expect institutional investors to rush into spot bitcoin ETFs. He believes that the introduction of a bitcoin ETF will have minimal investor demand and that speculators who bought in anticipation of the news will likely sell once the ETFs are launched.
Contrasting Views on Bitcoin ETFs
While Schiff remains skeptical, many others believe that the approval of spot bitcoin ETFs by the SEC will have a positive impact on the price of bitcoin. Some experts argue that people underestimate the long-term effects of bitcoin ETFs. Ark Invest CEO Cathie Wood and Galaxy Digital CEO Mike Novogratz expect a significant boost in the price of bitcoin. Venture capitalist Tim Draper has even doubled down on his prediction that bitcoin will reach $250,000 this year.
What are your thoughts on Peter Schiff's predictions regarding spot bitcoin ETFs? Share your opinions in the comments below.
Frequently Asked Questions
What precious metals can you invest in for retirement?
Silver and gold are two of the most valuable precious metals. Both are easy to sell and can be bought easily. If you want to diversify your portfolio, you should consider adding them to your list.
Gold: One of the oldest forms of currency, gold, is one of mankind's most valuable. It's also very safe and stable. It is a good way for wealth preservation during uncertain times.
Silver: Investors have always loved silver. It's a good choice for those who want to avoid volatility. Silver tends to move up, not down, unlike gold.
Platinium: Another form of precious metal is platinum, which is becoming more popular. It's resistant to corrosion and durable, similar to gold and silver. It's however much more costly than any of its counterparts.
Rhodium: Rhodium is used in catalytic converters. 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's also less expensive. It is a preferred choice among investors who are looking to add precious materials to their portfolios.
What precious metal should I invest in?
This depends on what risk you are willing take and what kind of return you desire. While gold is considered a safe investment option, it can also be a risky choice. For example, if your goal is to make quick money, gold may not suit you. If you have the patience to wait, then you might consider investing in silver.
If you don’t desire to become rich quickly, gold may be your best option. However, silver might be a better option if you're looking for an investment that provides steady returns over long periods.
Are You Ready to Invest in Gold?
The answer will depend on how many dollars you have saved so far and whether you had gold as an investment option at the time. If you're unsure about which option to choose then consider investing in both.
Gold is a safe investment and can also offer potential returns. Retirement investors will find gold a worthy investment.
Gold is more volatile than most other investments. As a result, its value changes over time.
This doesn't mean that you should not invest in gold. Instead, it just means you should factor the fluctuations into your overall portfolio.
Another benefit to gold is its tangible value. Gold can be stored more easily than stocks and bonds. It can also be carried.
Your gold will always be accessible as long you keep it in a safe place. You don't have to pay storage fees for physical gold.
Investing in gold can help protect against inflation. Because gold prices tend to rise along with other commodities, it's a good way to hedge against rising costs.
It's also a good idea to have a portion your savings invested in something which isn't losing 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. You shouldn't try to put all of your eggs into one basket.
You shouldn't buy too little at once. Begin by buying a few grams. Then add more as needed.
The goal is not to become rich quick. Rather, it's to build up enough wealth so you won't need to rely on Social Security benefits.
Although gold might not be the right investment for everyone it could make a great addition in any retirement plan.
What is the Performance of Gold as an Investment?
Gold's price fluctuates depending on the supply and demand. It is also affected negatively by interest rates.
Due to limited supplies, gold prices are subject to volatility. Additionally, physical gold can be volatile because it must be stored somewhere.
What are the fees for an IRA that holds gold?
The Individual Retirement Account (IRA), fee is $6 per monthly. This includes account maintenance and any investment costs.
If you want to diversify, you may be required to pay extra fees. These fees can vary depending on which type of IRA account you choose. Some companies offer free check accounts, but charge monthly fee for IRA accounts.
A majority of providers also charge annual administration fees. These fees are usually between 0% and 1%. The average rate for a year is.25%. These rates can be waived if the broker is TD Ameritrade.
Statistics
- 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 take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.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)
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
External Links
irs.gov
investopedia.com
wsj.com
- Saddam Hussein’s InvasionHelped Uncage a Bear In 1989 – WSJ
- Do you want to keep your IRA gold at home? It's not exactly legal – WSJ
finance.yahoo.com
How To
Gold IRAs are a growing trend
Investors seek diversification and protection against inflation by using gold IRAs.
Owners can invest in gold bars and bullion with the gold IRA. It is tax-free and can be used by investors who aren't concerned about stocks and bond.
An investor can use a gold IRA to manage their assets and not worry about market volatility. Investors can use the gold IRA for protection against inflation and potential problems.
Physical gold is also a great investment option, as it has unique properties like durability, portability, divisibility, and portability.
Additionally, the gold IRA has many benefits. It allows you to quickly transfer your gold ownership to your heirs. The IRS doesn't consider gold a commodity or currency.
All this means that the gold IRA is becoming increasingly popular among investors seeking a haven during financial uncertainty.
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By: Kevin Helms
Title: Peter Schiff Expects Bitcoin ETF Approval to be a Nonevent, Predicts Minimal Investor Demand
Sourced From: news.bitcoin.com/peter-schiff-expects-spot-bitcoin-etfs-to-bring-speculator-sell-off-minimal-institutional-demand/
Published Date: Thu, 04 Jan 2024 01:30:39 +0000
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