Radiant Capital Confirms Flash Loan Attack
Radiant Capital, a decentralized finance (defi) platform, has confirmed that it fell victim to a flash loan attack on January 2, 2023. The attack resulted in the protocol accruing bad debt in the WETH market, totaling about 1.3% of the total protocol TVL. According to blockchain analytics firm Peckshield, the digital assets lost during the attack amount to $4.5 million.
Exploitation of a Time Window
Peckshield's assessment of the hack reveals that the attackers took advantage of a time window when a new market was activated in a lending market. The firm stated that the attack could have been prevented if the new market had been activated with CF 0%. This vulnerability allowed the hackers to execute their attack successfully.
Precautionary Measures Taken
In response to the attack, the Radiant Decentralized Autonomous Organization (DAO) Council has taken the precautionary step of pausing all markets on Arbitrum. An investigation into the incident is currently underway to identify the extent of the damage and gather more information about the attack.
Protocol Solvency and Remediation Plan
Despite the attack, Radiant Capital assures users that the protocol remains solvent. The platform is actively working on implementing a remediation plan to re-capitalize the protocol entirely and give affected users full access to their deposits. Additionally, a proposed plan will be put in place for users at risk of liquidation during the pause period to ensure fair treatment.
Call for Contact and User Assistance
Radiant Capital urges the hackers responsible for the attack to establish contact with the defi platform before involving law enforcement. The platform hopes to resolve the situation and lift the pause within the next 24 hours to allow affected users to regain access to their funds.
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Frequently Asked Questions
Can I take physical possession of gold in my IRA?
Many people are curious if they can possess physical gold in an IRA. This is a fair question because there isn’t any legal way to do it.
If you take a closer look at the law, there is nothing that can stop you from having gold in your IRA.
Most people don’t realize the cost savings they could make by putting their gold into an IRA rather than keeping it in their homes.
It’s very easy to dispose of gold coins, but much harder to make an IRA. If you decide to keep your precious metal in your own home you will have to pay two taxes. Two taxes will be charged: one to the IRS, one to the state you live in.
It is possible to lose your gold and pay twice as much tax. So why would anyone want to keep their gold in their home?
It might seem that you want the security of knowing your gold is safe inside your home. You can protect your gold from theft by storing it somewhere more secure.
If you are planning to visit frequently, your gold should not be left at home. If you leave your precious gold unattended thieves will easily steal it.
It is better to keep your gold in an insured vault. Then, your gold will be protected from fire, flood, earthquake, and robbery.
Another advantage to storing your gold in a vault is that you won’t have to worry about paying property tax. You will have to pay income taxes on any gains from the sale of your gold.
If you prefer not to pay tax on your precious metals, an IRA may be a good option. An IRA will allow you to avoid income tax while earning interest on your gold.
You don’t have to pay capital gains taxes on gold. This means that you can cash out the entire value of your investment at any time you like.
You won’t have to move your gold because IRAs are federally regulated.
The bottom line is: You can own gold in an IRA. Your fear of it being stolen is what holds you back.
Are gold and Silver IRAs a good idea or a bad idea?
This could be a great opportunity for those who want to easily invest in both gold or silver simultaneously. There are other options as well. We are happy to answer any questions you may have about these types of investments. We are always here to help!
Which type of IRA works best?
It is crucial to find the right IRA for your needs. You should consider whether you wish to maximize tax deferred growth, minimize taxes now, pay penalties later or avoid taxes altogether.
The Roth option may make sense if you are saving for retirement but don’t have much other money invested. If you plan to continue working beyond age 59 1/2, and pay income taxes on any account withdrawals, the Roth option may be a good choice.
If you plan on retiring early, the traditional IRA may be better because you’ll likely owe any taxes on the earnings. If you are going to be working beyond 65 years old, the traditional IRA may make more sense because you can withdraw all or part of your earnings without having to pay taxes.
How to Open a Precious Metal IRA
You can open an IRA in precious metals by opening a Roth Individual Retirement Account (IRA), which you can self-direct.
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.
People who are looking to save money and still need a tax break will find it attractive.
You do not have to only invest in gold and silver. You can invest anywhere you wish, as long as it is within the IRS guidelines.
While most people associate precious metals with silver and gold, there are many types of precious metals.
These include palladium, platinum, rhodium,osmium,iridium, andruthenium.
There are several ways you can invest in precious metals. The two most popular options include buying bullion coins and bars and purchasing shares of mining companies.
Bullion Coins and Bars
One of the most straightforward ways to invest is to buy bullion coin and bars. Bullion can be used to refer to the physical ounces or gold or silver.
You get actual bullion bars and coins when you purchase bullion coins.
You might not notice any changes in your pocket when you buy bullion coins or bars from a store but you will see some benefits over the long-term.
You will receive a tangible piece if history, for example. Each coin and bar has its own unique story behind it.
You’ll often find that the face value of a coin is far lower than its nominal value. When it was first introduced in 1986, the American Eagle Silver Coin cost only $1.00 per troy ounce. Today, however, the American eagle’s price is closer to $40.00 per an ounce.
Bullion has had a tremendous increase in its value since its introduction. This is why many investors choose bullion bars and bullion coin over futures.
Mining Companies
If you are looking to invest in precious metals, there is another option: investing in mining shares. You’re investing in the company’s ability to produce precious metals.
You will be paid dividends that are based on the company’s profits. These dividends can then be used to pay out shareholders.
In addition, you will benefit from the growth potential of the company. As the demand for the product grows, the company’s share price should increase.
Because these stocks fluctuate in price, it’s important to diversify your portfolio. This is how you spread your risk across different companies.
It’s important to remember, however, that mining companies can still be subject to financial losses, just as any other stock market investment.
If gold prices drop significantly, your share of ownership could be worthless.
The Bottom Line
Precious metals such as gold and silver provide a haven during economic uncertainty.
Both silver and gold are subject to extreme price swings. You might be interested in long-term investments in precious metals. Consider opening a precious metals IRA with a reputable company.
You can enjoy tax benefits while still owning tangible assets.
Should you open a Precious Metal IRA
It all depends on your investment goals and risk tolerance.
An account should be opened if you are planning to use the money in retirement.
It is likely that precious metals will appreciate over the long-term. They also offer diversification benefits.
Additionally, silver and gold prices tend to move in tandem. They are therefore a better option for investing in both assets.
Precious metal IRAs are not recommended for anyone who isn’t planning to use their money for retirement and doesn’t want any risk.
Which is stronger? 14k Gold or Sterling Silver?
Although gold and silver can be strong metals, sterling silver is far less expensive as it contains 92% silver instead of 24%.
Sterling silver is also known as fine silver because it is made from a mixture of silver and other metals such as copper and zinc.
The strength of gold is generally very high. It takes tremendous pressure to split it apart. If you dropped an object onto a piece or gold, it would break into thousands instead of two halves.
But silver isn’t nearly as sturdy as gold. If you dropped an item onto silver sheets, it would likely fold and bend without cracking.
It is commonly used in coins and jewelry. Therefore, its value tends to fluctuate based on supply and demand.
What are the pros & con’s of a golden IRA?
A gold IRA is an excellent investment vehicle for those who want to diversify their holdings but don’t have access to traditional banking services. It allows you to invest in precious metals such as gold, silver, and platinum without paying taxes on any gains until they’re withdrawn from the account.
There is a downside to this: if you withdraw your earnings early, you’ll be subject to normal income tax. But because these funds are held outside of the country, there is little chance of them being seized by creditors when you default on your loan.
A gold IRA might be the right choice for you if you enjoy owning gold and don’t worry about taxes.
Statistics
- Silver must be 99.9% pure • (forbes.com)
- 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)
- Same tax rules as traditional IRA SEP IRA contributions in 2022 are limited to 25% of compensation or $66,000, whichever is less Before setting up a Silver IRA, understand the fees and IRS restrictions. (sltrib.com)
- Depending on your financial situation, most experts recommend you invest no more than 5% to 10% of your retirement funds in precious metals. (forbes.com)
External Links
wsj.com
kitco.com
en.wikipedia.org
regalassets.com
How To
The Best Precious Metals Ira 2022: Things to Remember
Precious Metals Ira remains one of the most sought-after investment options. This article will help you understand what makes this asset class so attractive and how to make wise decisions when investing in precious metals.
The main attraction of these assets is their long-term growth potential. Looking back at historical data, we see that gold prices have shown incredible returns. Over the past 200-years, gold prices have gone from $20 per ounce up to $1900 per ounce. The S&P 500 Index, however, grew by only around half of that amount.
During times of economic uncertainty, people consider gold a safety net. When the stock market suffers bad days, people tend to sell stocks and move into the safety of gold. The safety of gold is also considered an insurance against inflation. Many economists believe there will always be inflation. Therefore, they see owning physical gold as a way to protect your savings from future price increases.
There are a few things you need to remember before purchasing precious metals like silver, gold or platinum. First, decide whether bullion bars are better than coins. Bullion bars are often purchased in large quantities (like 100 grams) and stored until needed. Coins are smaller versions of bullion bars, which can then be used to buy small amounts of bullion.
The second thing you need to consider is where you will store your precious metals. Certain countries are more secure than others. If you are in the US, it might be a good idea to store your precious metals abroad. But if you’re planning on storing them in Switzerland, you might want to ask yourself why.
You should also decide whether to invest in precious metals directly or via “precious-metals exchange-traded funds (ETFs). ETFs track the performance of various commodities such as gold and are financial instruments. You can use these to get exposure to precious metals without having to own them.
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