Bitcoin (BTC) concluded its five-day losing spree on Friday, indicating that the cryptocurrency might have discovered a temporary price base. This development coincided with the traders' ongoing response to the recent U.S. inflation report, which remained at a steady 3.7%. Simultaneously, Ethereum (ETH) experienced a slight upward shift, signaling a potential end to its recent bearish phase.
Bitcoin's Market Performance
Bitcoin broke its five-day trend of losses on Friday, a reaction seemingly triggered by the recent inflation report in the United States. After hitting a low of $26,558.32 during Thursday's trading session, BTC/USD climbed to an intraday high of $26,919.04.
The price recovery observed today occurred after BTC met resistance at the $26,560 mark, which bulls are currently using as a support level. While the more prolonged support point seems to be at $26,000, the relative strength index (RSI) has yet to drop below the 45.00 level, thereby preventing the price from reaching this point.
The index currently stands at 46.41, having previously failed to break through its floor at 45.00. However, it is plausible that bears may push this downwards over the next few days. If this level remains steady, there's a chance that Bitcoin might re-enter the $27,000 bracket over the weekend.
Ethereum's Market Performance
Similar to Bitcoin, Ethereum also experienced a slight upward trend after recovering from its own support level on Friday. ETH/USD rose to a peak of $1,553.51 during today's session, following a low at $1,523.24 the previous day.
Yesterday's low marked Ethereum's weakest point since March 12, when the price hit rock bottom at $1,612. The 10-day (red) moving average continues to showcase its downward crossover with its 25-day (blue) counterpart, indicating potential bearish sentiment in the near future.
Although the price currently sits above the floor at $1,535, there is a likelihood that this could shift in the coming days, reflecting the volatile nature of the cryptocurrency market.
Frequently Asked Questions
What is the value of a gold IRA
There are many benefits to a gold IRA. It's an investment vehicle that allows you to diversify your portfolio. You control how much money goes into each account and when it's withdrawn.
You also have the option to transfer funds from other retirement plans into a IRA. If you are planning to retire early, this makes it easy to transition.
The best part about gold IRAs? You don't have to be an expert. They're readily available at almost all banks and brokerage firms. Withdrawals can be made instantly without the need to pay fees or penalties.
There are, however, some drawbacks. Gold has always been volatile. Understanding why you want to invest in gold is essential. Is it for growth or safety? Is it for security or long-term planning? Only once you know, that will you be able to make an informed decision.
If you plan to keep your gold IRA indefinitely, you'll probably want to consider buying more than one ounce of gold. One ounce won't be enough to meet all your needs. Depending on the purpose of your gold, you might need more than one ounce.
You don't need to have a lot of gold if you are selling it. You can even get by with less than one ounce. However, you will not be able buy any other items with those funds.
Can the government take your gold?
The government cannot take your gold because you own it. You worked hard to earn it. It belongs exclusively to you. This rule may not apply to all cases. For example, if you were convicted of a crime involving fraud against the federal government, you can lose your gold. Your precious metals can also be lost if you owe tax to the IRS. However, even if you don't pay your taxes, your gold can be kept as property of the United States Government.
How much should you have of gold in your portfolio
The amount you make will depend on the amount of capital you have. You can start small by investing $5k-10k. Then as you grow, you could move into an office space and rent out desks, etc. So you don't have all the hassle of paying rent. You only pay one month.
It's also important to determine what type business you'll run. My website design company charges clients $1000-2000 per month depending on the order. So if you do this kind of thing, you need to consider how much income you expect from each client.
You won't get a monthly paycheck if you work freelance. This is because freelancers are paid. You might get paid only once every six months.
Decide what kind of income do you want before you calculate how much gold is needed.
I suggest starting with $1k-2k gold and building from there.
Are gold investments a good idea for an IRA?
Gold is an excellent investment for any person who wants to save money. You can also diversify your portfolio by investing in gold. There's more to gold that meets the eye.
It has been used throughout the history of currency and remains a popular payment method. It's sometimes called “the world's oldest money”.
But gold, unlike paper currency, which is created by governments, is mined out from the ground. It is very valuable, as it is rare and hard to create.
The supply and demand factors determine how much gold is worth. The strength of the economy means people spend more, and so, there is less demand for 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 results in more gold being produced, which drives down its value.
This is why both individuals as well as businesses can benefit from investing in gold. You'll reap the benefits of investing in gold when the economy grows.
Additionally, you'll earn interest on your investments which will help you grow your wealth. Plus, you won't lose money if the value of gold drops.
How does a gold IRA work?
You can purchase physical gold bullion coins anytime. To invest in gold, you don't need to wait for retirement.
Owning gold as an IRA has the advantage of allowing you to keep it forever. You won't have to pay taxes on your gold investments when you die.
Your gold is passed to your heirs without capital gains tax. Because your gold doesn't belong to the estate, it's not necessary to include it on your final estate plan.
To open a gold IRA, you will first need to create an individual retirement account (IRA). Once you've done that, you'll receive an IRA custody. This company acts as an intermediary between you and IRS.
Your gold IRA custody will take care of the paperwork and send the forms to IRS. This includes filing annual reports.
Once you've established your gold IRA, you'll be able to purchase gold bullion coins. The minimum deposit is $1,000. If you make more, however, you will get a higher interest rate.
When you withdraw your gold from your IRA, you'll pay taxes on it. If you take out the whole amount, you'll be subject to income taxes as well as a 10 percent penalty.
A small percentage may mean that you don't have to pay taxes. However, there are exceptions. You'll owe federal income tax and a 20% penalty if you take out more than 30% of your total IRA assets.
You shouldn't take out more then 50% of your total IRA assets annually. If you do, you could face severe financial consequences.
What precious metals could you invest in to retire?
Silver and gold are two of the most valuable precious metals. They're both easy to buy and sell and have been around forever. You should add them to your portfolio if you are looking to diversify.
Gold: Gold is one the oldest forms currency known to man. It's stable and safe. It is a good way for wealth preservation during uncertain times.
Silver: Silver has always been popular among investors. It is an excellent choice for investors who wish to avoid volatility. Silver is more volatile than gold. It tends to rise rather than fall.
Platinum: A new form of precious metal, platinum is growing in popularity. Like gold and silver, it's very durable and resistant to corrosion. However, it's much more expensive than either of its counterparts.
Rhodium: Rhodium can be used in catalytic convertors. It's also used in jewelry making. It is relatively affordable when compared to other types.
Palladium: Palladium has a similarity to platinum but is more rare. It's also more affordable. It is a preferred choice among investors who are looking to add precious materials to their portfolios.
Can I buy Gold with my Self-Directed IRA?
However, gold can only be purchased with your self-directed IRA. To do so, you must first open a brokerage account at 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 may contribute up to $1,000 ($2,000 if married, filing jointly) directly into a Roth IRA.
If you do decide you want to invest your money in gold, you should look into purchasing physical bullion instead of futures contracts. Futures contracts, which are financial instruments based upon the price of gold, are financial instruments. They allow you to speculate on future prices without owning the metal itself. Physical bullion, however, is real gold and silver bars that you can hold in your hand.
- If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (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)
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (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)
- 7 U.S. Code SS7 – Designation Boards of Trade as Contract Markets
- 26 U.S. Code SS 408 – Individual retirement accounts
- Saddam Hussein's Invasion Helped Uncage a Bear In 1990 – WSJ
- How do you keep your IRA Gold at Home? It's Not Exactly Legal – WSJ
- Yahoo Finance provides information about Barrick Gold Corporation's (GOLD) stock price, news, quote, and history.
3 Ways To Invest in Gold For Retirement
It's important to understand how gold fits in with your retirement plan. There are many ways to invest in gold if you have a 401k account at work. You might also be interested to invest in gold outside the workplace. You could, for example, open a custodial bank account at Fidelity Investments if your IRA (Individual Retirement Account) is open. If you don't have any precious metals yet, you might want to buy them from a reputable dealer.
These are the rules for gold investing:
- Buy Gold With Your Cash – Do not use credit cards to purchase gold. Instead, put cash into your accounts. This will protect you from inflation and help keep your purchasing power high.
- Own Physical Gold Coins – You should buy physical gold coins rather than just owning a paper certificate. Physical gold coins can be sold much faster than paper certificates. Also, there are no storage fees associated with physical gold coins.
- Diversify Your Portfolio – Never put all of your eggs in one basket. In other words, spread your wealth around by investing in different assets. This reduces risk and allows you to be more flexible during market volatility.
By: Eliman Dambell
Title: Bitcoin and Ethereum Technical Analysis: A Shift in Market Trends for BTC and ETH
Sourced From: news.bitcoin.com/bitcoin-ethereum-technical-analysis-btc-bulls-end-a-5-day-losing-streak/
Published Date: Fri, 13 Oct 2023 12:49:29 +0000