Peter Brandt's Perspective on Bitcoin ETFs
According to veteran trader Peter Brandt, the current hype around bitcoin exchange-traded funds (ETFs) may serve as a signal for experienced traders to sell their holdings. Brandt also believes that the anticipated approval of spot bitcoin ETFs can be seen as a classic "buy the rumor, sell the news event."
Brandt's view is based on two observations. Firstly, he finds it ironic that bitcoin maximalists, who value BTC for its independence from government control, are eagerly awaiting the approval of ETFs by the U.S. Securities and Exchange Commission (SEC). Secondly, he draws a parallel between the current ETF hype and a strategy used by seasoned traders. When the average person is rushing to invest, it often indicates that it is time for experienced traders to exit the market.
However, Brandt acknowledges that his observations may be incorrect and invites those who are more knowledgeable to share their thoughts on the matter.
Reactions to Brandt's Views
Not everyone agrees with Brandt's perspective. Social media user Abel Chris argues that if the SEC approves multiple spot Bitcoin ETFs, it will likely drive the price of the cryptocurrency up. Chris believes that the adoption of bitcoin by countries to support their currencies could also contribute to an upward trend in its price.
Another user, Cristian Palusci, suggests that Brandt's assertions about ETFs only apply to the "average European or American kid." He argues that bitcoiners from other parts of the world are more interested in the accessibility of a parallel financial system that protects their savings from the devaluation of local fiat currencies.
Conclusion
The expected approval of spot Bitcoin ETFs has generated significant hype in the trading community. While Peter Brandt sees this as a potential signal to sell, others believe it could drive the price of bitcoin higher. As the debate continues, it is essential for traders to consider multiple perspectives and make informed decisions based on their own analysis.
What are your thoughts on Peter Brandt's views? Let us know in the comments section below.
Frequently Asked Questions
What Should Your IRA Include in Precious Metals?
The most important thing you should know when investing in precious metals is that they are not just for wealthy people. You don’t need to have a lot of money to invest. You can actually make money without spending a lot on gold or silver investments.
You could also consider buying physical coins like bullion bars, rounds or bullion bars. It is possible to also purchase shares in companies that make precious metals. You may also be interested in an IRA transfer program offered by your retirement provider.
You will still reap the benefits of owning precious metals, regardless of which option you choose. These metals are not stocks, but they can still provide long-term growth.
And unlike traditional investments, they tend to increase in value over time. You'll probably make more money if your investment is sold down the line than traditional investments.
Is gold buying a good retirement option?
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. There are other ways to invest gold. It is best to research all options and make informed decisions based on your goals.
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 need cash flow to finance your investment, then gold stocks could be a good option.
You also can put your money into exchange-traded funds (ETFs), which essentially give you exposure to the price of gold by holding gold-related securities instead of actual gold. These ETFs can include stocks of precious metals refiners and gold miners.
Can I buy gold with my self-directed IRA?
While you can purchase gold from your self-directed IRA (or any other brokerage firm), you must first open a brokerage account such as TD Ameritrade. Transfer funds from an existing retirement account are also possible.
The IRS allows individuals to contribute up to $5,500 annually ($6,500 if married and filing jointly) to a traditional IRA. Individuals can contribute as much as $1,000 per year ($2,000 if married filing jointly) to a Roth IRA.
If you do decide to invest in gold, you'll want to consider purchasing physical bullion rather than investing in futures contracts. Futures contracts are financial instruments that are based on gold's price. You can speculate on future prices, but not own the metal. But physical bullion refers to real gold and silver bars you can carry in your hand.
How much should precious metals make up your portfolio?
This question can only be answered if we first know what precious metals are. Precious metals refer to elements with a very high value relative other commodities. This makes them highly valuable for both investment and trading. Gold is currently the most widely traded precious metal.
But, there are other types of precious metals available, including platinum and silver. The price of gold fluctuates, but it generally remains stable during times of economic turmoil. It is also unaffected significantly by inflation and Deflation.
All precious metals prices tend to rise with the overall market. However, they may not always move in synchrony with each other. When the economy is in trouble, for example, gold prices tend to rise while other precious metals fall. Investors expect lower interest rates which makes bonds less appealing investments.
When the economy is healthy, however, the opposite effect occurs. Investors want safe assets such Treasury Bonds and are less inclined to demand precious metals. These precious metals are rare and become more costly.
Diversifying across precious metals is a great way to maximize your investment returns. Furthermore, because the price of precious Metals fluctuates, it is best not to focus on just one type of precious Metals.
What does gold do as an investment?
Gold's price fluctuates depending on the supply and demand. Interest rates also have an impact on the price of gold.
Due to the limited supply of gold, prices for gold are highly volatile. You must also store physical gold somewhere to avoid the risk of it becoming stale.
What is the best precious-metal to invest?
This question depends on how risky you are willing to take, and what return you want. Gold is a traditional haven investment. However, it is not always the most profitable. Gold may not be right for you if you want quick profits. Silver is a better investment if you have patience and the time to do it.
If you don’t desire to become rich quickly, gold may be your best option. If you want to invest in long-term, steady returns, silver is a better choice.
What is the tax on gold in Roth IRAs?
An investment account's tax is calculated based on the current value of the account, and not on what you paid originally. If you invest $1,000 into a mutual fund, stock, or other investment account, then any gains are subjected tax.
If you place the money in a traditional IRA, 401(k), or other retirement plan, there is no tax when you take it out. Dividends and capital gains are exempt from tax. Capital gains only apply to investments more than one years old.
The rules governing these accounts vary by state. For example, in Maryland, you must take withdrawals within 60 days after reaching age 59 1/2 . In Massachusetts, you can wait until April 1st. New York is open until 70 1/2. To avoid penalties, plan ahead so you can take distributions at the right time.
Statistics
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
- (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)
- 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)
- 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)
External Links
forbes.com
- Gold IRA: Add some sparkle to your retirement nest egg
- Understanding China's Evergrande Crisis – Forbes Advisor
bbb.org
investopedia.com
law.cornell.edu
- 7 U.S. Code SS7 – Designation board of trade as contract marketplaces
- 26 U.S. Code SS 408 – Individual retirement accounts
How To
Tips for Investing in Gold
Investing in Gold remains one of the most preferred investment strategies. There are many benefits to investing in gold. There are many options for investing in gold. Some people prefer to buy gold coins in physical form, while others prefer to invest in gold ETFs.
Before you purchase any type or gold, here are some things to think about.
- First, find out if your country allows gold ownership. If so, then you can proceed. You can also look at buying gold abroad.
- You should also know the type of gold coin that you desire. You can choose between yellow gold and white gold as well as rose gold.
- The third factor to consider is the price for gold. It is best to start small and work your way up. You should diversify your portfolio when buying gold. You should invest in different assets such as stocks, bonds, real estate, mutual funds, and commodities.
- Last but not least, remember that gold prices fluctuate frequently. Be aware of the current trends.
—————————————————————————————————————————————————————————————-
Based on [POSTTITLE]
by [POSTAUTHOR]
