As we delve into the financial realm, the spotlight is now on gold, shining brighter than ever in 2025. Seasoned market researcher Ed Yardeni boldly dubs it as the "new bitcoin."
The Rise of Gold: A Safe Haven Magnet
Picture this: gold, standing tall as the fortress of safety amidst the stormy seas of geopolitical uncertainty. Ed Yardeni asserts that gold has triumphed over bitcoin in this realm, positioning itself as the ultimate safe-haven asset.
Historical Reliability: Gold vs. Bitcoin
Think of gold as the seasoned marathon runner with a track record dating back centuries, while bitcoin is the energetic sprinter just starting its race. Yardeni's insights shed light on gold's resilience over time compared to bitcoin's more volatile nature.
The Numbers Game: Gold's Victory March
Let's talk numbers. Gold has surged a whopping 60% year-to-date, leaving bitcoin's 20% gains in the dust. Recent trends show gold climbing by nearly 4% while bitcoin takes a 9% dip and Nasdaq wobbles at almost 1%.
Gold's Price Surge: A Closer Look
At over $4,200 an ounce today, gold's price tag has significantly soared from roughly $2,600 just a year ago. What's driving this surge, you may wonder?
Economic Uncertainty Boosts Gold's Shine
Enter the stage: President Trump's trade tensions with China. The looming threats and economic unpredictability have nudged investors towards the comforting embrace of gold, seeking refuge from the storm.
The Liquidity Struggle: Bitcoin's Tale
Bitcoin's recent stumble is linked to liquidity strains, with substantial liquidations triggering a chain reaction. In comparison, gold's ascent post Trump's tariff hints reflects its geopolitical hedge status.
Future Projections: Yardeni's Crystal Ball
Yardeni foresees gold surpassing $5,000 in 2026 and potentially hitting $10,000 by the decade's close. Investors flocking to gold and silver as geopolitical shields further bolster this prophecy.
The Bitcoin Rollercoaster: A Bumpy Ride
While bitcoin rollercoasters near $111,000 post a record high, its journey is marked by institutional interest, yield fluctuations, and the allure of safeguarding against monetary risks.
Amidst the chaos, steadfast long-term holders weather the storm, hinting at a resilient foundation. Metrics like hash rate and active addresses paint a promising picture, despite the recent market turmoil.
As the financial landscape evolves, the gold versus bitcoin saga continues. Which safe haven will emerge as the ultimate sanctuary? The answer lies in the winds of change and the choices of investors navigating the turbulent seas of finance.
Frequently Asked Questions
What is the best precious-metal to invest?
Gold is an investment that offers high returns on its capital. It can also protect against inflation and other risks. As people worry about inflation, the price of gold tends increase.
It's a good idea to purchase gold futures. These contracts assure you that you will receive a specified amount of precious metal at a fixed price.
But, not everyone is able to afford gold futures. Some prefer physical gold.
They can easily exchange their gold with other people. They can also sell their gold whenever they wish.
Some people would rather not pay tax on their gold. People buy gold directly from the government in order to avoid paying taxes.
This process requires you to make several trips to your local post office. First convert any gold that is already in circulation into coins or bars.
Finally, you'll need to get a stamp to put on the bars or coins. Then, send them to the US Mint. The US Mint will melt the coins and bars to make new ones.
These new coins and bars are stamped with the original stamps. That means that they're legal tender.
But if you buy gold directly from the US Mint, you won't have to pay taxes.
Decide which precious metal you would like to invest.
Are gold- and silver-IRAs a good idea.
If you are looking for an easy way to invest in both gold and silver at once, then this could be an excellent option for you. There are other options as well. We are happy to answer any questions you may have about these types of investments. We're always glad to help!
Is it possible to hold precious metals in an IRA
This depends on the IRA's owner's desire to diversify or keep his holdings in silver and gold.
Two options are available for him if diversification is something he desires. He could buy physical bars of gold and/or silver from a dealer or sell these items back to the dealer at the end of the year. He doesn't wish to sell any of his precious metal investments. In that case, he should continue holding onto them as they would be perfectly suitable for storing within an IRA account.
Statistics
- If you accidentally make an improper transaction, the IRS will disallow it and count it as a withdrawal so that 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)
- Silver must be 99.9% pure • (forbes.com)
- The IRS also allows American Eagle coins, even though they do not meet gold's 99.5% purity standard. (forbes.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
en.wikipedia.org
wsj.com
investopedia.com
regalassets.com
How To
How to change your IRA to a gold IRA
Do you want to change your retirement savings away from a traditional IRA and into a golden IRA? Well, this article will help you do just that. Here's how you can do it.
“Rolling over” refers to the act of transferring money into an alternative type of IRA (traditional), or vice versa (gold). Rolling an account over offers tax advantages. Others prefer to invest in tangible assets, such as precious metals.
There are two types IRAs – Traditional IRAs and Roth IRAs. The difference between the two accounts is simple. Roth IRAs have no tax deductions, but Traditional IRAs can deduct taxes. If you invest $5,000 in a Traditional IRA now, then you'll be able only to withdraw $4,000. The Roth IRA would allow you to keep every cent if you invested the same amount.
This is what you need to know if you want to convert an IRA from a conventional to a IRA to a IRA with gold.
First, you will need to decide whether your current balance should be transferred to a new account. If you transfer money, income tax will apply to any earnings exceeding $10,000. If you decide to roll over your IRA you will not be subject to income tax on these earnings until you turn 59 1/2.
Once you've made up your mind, you'll need to open up a new account. It is likely that you will be asked to prove your identity by providing proof such as a Social Security card or passport. Then, you'll fill out paperwork showing that you own the IRA. Once you have completed all the forms, you will submit them to bank. They'll verify your identity and give instructions on where to send the checks and wire transfers.
This is the fun part. You'll deposit cash into your new account and wait for the IRS to approve your requests. You will be notified by mail that your request has been approved.
That's it! Now all you have to do is sit back and watch the money grow. If you decide to convert your IRA you can close it and transfer the remaining balance into a different IRA.
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