ASIC Accused of Neglecting Investor Protection
An Australian government official has raised concerns about the Australian Securities and Investments Commission (ASIC) failing to issue a consumer warning against the Hyperverse crypto investment scheme. Stephen Jones, the assistant treasurer in the Australian government, plans to query ASIC's decision and question why it did not follow the lead of regulators in the UK, New Zealand, Canada, Germany, and Hungary.
Hyperverse CEO's Fictitious Identity Exposed
The assistant treasurer's remarks come in the wake of a media investigation that revealed the CEO of Hyperverse, Steven Reece Lewis, to be a fictional character. The University of Leeds and the University of Cambridge have both confirmed that they do not have any records of Lewis, as previously reported by Bitcoin.com News.
According to media reports, the collapsed Hyperverse crypto investment scheme falsely presented its CEO, Steven Reece Lewis, as a graduate of prestigious universities. The scheme also claimed endorsements from celebrities like Steve Wozniak and Chuck Norris, which helped attract and defraud thousands of investors.
Assistant Treasurer Questions Lack of Warning
The assistant treasurer characterized the operation of the Hyperverse scheme as a deceptive strategy aimed at convincing unsuspecting individuals to invest in a non-existent product, with the only source of income being money from new investors. He expressed confusion as to why ASIC did not issue a warning and suggested that the scheme displayed characteristics of a scam, indicating the need for investor protection.
Importance of Regulator Warnings
The question arises whether warnings from regulators can effectively protect investors from falling victim to crypto scams. Share your thoughts in the comments section below.
Frequently Asked Questions
What are the pros and cons of a gold IRA?
The gold IRA is a great way to diversify your portfolio, but you don't have access the traditional banking services. You can invest in precious metals like gold, silver, or platinum, without having to pay taxes until the gains are withdrawn.
The downside is that early withdrawals will result in ordinary income taxes on earnings. However, these funds are kept outside the country and cannot be seized by creditors if you default.
A gold IRA is a great option if you want to own gold but not worry about taxes.
How to open a Precious Metal IRA
The best way to open an IRA for precious metals is by opening a self-directed Roth Individual Retirement Account (IRA).
This type account is better than others because you don’t have any tax on the interest that you earn from investments until you remove them.
This makes it very attractive to people who want to save money but also need a tax break.
You don't have to invest in silver or gold. You can put your money in almost any item that meets the IRS guidelines.
While most people associate precious metals with silver and gold, there are many types of precious metals.
There are many examples: palladium; platinum; rhodium; osmium; iridium; ruthenium.
You have many options to invest in precious metals. These include purchasing bullion coins and bars, as well as shares in mining companies.
Bullion Coins, Bars
One of the best ways to invest in precious metals is by buying bullion bars and coins. Bullion is a general term that describes physical ounces, or physical gold and silver.
When you buy bullion coins and bars, you receive actual pieces of the metal itself.
While you might not see any change in your pocket after you purchase bullion coins and bars at a store, you will notice some benefits over time.
You will receive a tangible piece if history, for example. Every coin and every bar has a unique story.
When you look at face value of the coin, you'll often find that it's worth far less than its nominal value. For example, the American Eagle Silver Coin was only $1.00 per ounce when it was introduced in 1986. Today, however, the American eagle's price is closer to $40.00 per an ounce.
Since the value of bullion has increased dramatically since its introduction, many investors prefer buying bullion coins and bullion bars rather than futures contracts.
Mining Companies
A great way to get precious metals is by investing in shares in mining companies. When you invest in mining businesses, you are investing in their ability to produce silver and gold.
You will get dividends based off the company's profits in return. These dividends are then used to pay shareholders.
Additionally, you will be able to take advantage of the company's potential growth. The share prices of the company should rise as more people buy the product.
It is crucial to diversify your portfolio because these stocks are subject to price fluctuations. This means spreading your risk across multiple companies.
It is important to keep in mind that mining companies can lose their financial investments just as stock markets investors.
Your ownership stake could become worthless if the price of gold falls significantly.
The bottom line
Precious metals such as gold and silver provide a haven during economic uncertainty.
But, silver and gold can be subject to price swings. You might be interested in long-term investments in precious metals. Consider opening a precious metals IRA with a reputable company.
By doing this, you can reap the tax benefits and still have physical assets.
Are gold and silver IRAs a good idea?
This could be a good option for anyone looking to quickly invest in both silver or gold. But there are other options. If you have any questions regarding these types of investments, please feel free to contact us anytime. We are always here to help!
Statistics
- SEP-IRA”Simplified employee pension” For self-employed people like independent contractors, freelancers, and small-business ownersSame tax rules as traditional IRASEP IRA contributions in 2022 are limited to 25% of compensation or $66,000, whichever is less4. (sltrib.com)
- The IRS also allows American Eagle coins, even though they do not meet gold's 99.5% purity standard. (forbes.com)
- To qualify as IRA allowable precious metals and be accepted by STRATA, the following minimum fineness requirements must be met: Gold must be 99.5% pure, silver must be 99.9% pure, and platinum and palladium must both be 99.95% pure. (stratatrust.com)
- The maximum yearly contribution to an individual's IRAs is currently $6,000 ($7,000 for those 50 years or older), or 100% of earned income, whichever is less. (monex.com)
External Links
wsj.com
kitco.com
investopedia.com
forbes.com
How To
How to buy silver with your IRA
How to start buying Silver with Your IRA – The best method to invest directly in silver or gold is through the direct ownership of physical bullion. The most popular investment form is silver bars and coins. This is because it offers diversification and liquidity.
There are many options available if you wish to purchase precious metals such as gold and silver. You can purchase them directly through their producers, which include mining companies or refiners. You can also purchase them through a dealer, who buys and sellers bullion products, if you don’t want to deal directly with the producer.
This article will help you to start investing silver with your IRA.
- Investing In Gold & Silver Directly – This is the best option to buy precious metals. This means that you can get the bullion straight from the source, and it will be delivered directly to your front door. Some investors store their bullion in their home. Others choose to store their bullion in a safe storage location that is insured and protected. Make sure you properly store your precious metal when you keep it. Many storage facilities offer insurance against fire, theft and damage. But even with insurance, you risk losing your investments due to natural disasters or human error. The safe storage of precious metals at a bank or credit card union is always recommended.
- Online Precious Metals Shopping – Bullion online can be a great alternative to carrying around heavy boxes. Bullion dealers have a wide range of bullion options, including bars and coins. Coins are available in a variety of sizes, shapes, designs, and colors. Coins are usually easier to carry than bars, and they tend to be less expensive. Bars come in different weights and sizes. Bars can weigh hundreds of lbs, while others weigh only a few ounces. The best rule of thumb for choosing the right type of bar is to consider your intended use. A smaller size bar might work well if you are giving it away as a present. On the other hand, if you want to add it to your collection and display it proudly, you might want to spend a little extra money and get something larger.
- Dealers for Precious Metal – The third option is to buy bullion direct from dealers. Most dealers specialize in one area of the market, whether gold or silver. Some dealers specialize in certain types of bullion, such as rounds or minted coins. Others are more skilled in certain regions. And yet others specialize in bulk purchases. You will be able to find competitive prices and simple payment options no matter who dealer you choose.
- Buy Precious Metallics from Retirement Accounts. While technically not an “investment”, it's possible to invest in retirement accounts to gain exposure. Investments in precious metals must be made through a qualified retirement plan to receive tax benefits as per Section 219 of IRS Code. These include IRAs as well 403(b), 401(k), and 403 (b) plans. These accounts are often set up to help you save more for retirement. They offer higher returns than most other investment vehicles. You can also diversify your holdings by opening these accounts. The problem? Investments in retirement accounts aren't available to everyone. These accounts can only, however, be accessed by those who work for an employer that sponsors them.
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