US-Saudi Tensions Escalate as Report Says Crown Prince Is No Longer Interested in Pleasing the United States
In 2023, Saudi Arabia and the Organization of the Petroleum Exporting Countries' (OPEC) unexpected oil production cuts marked a significant shift away from U.S. policy preferences. Saudi Crown Prince Mohammed bin Salman openly expressed disinterest in appeasing the U.S. This move coincided with broader global realignments, including BRICS nations reassessing economic ties and Saudi Arabia considering trade in currencies other than the U.S. dollar.
Former Treasury Official Warns of Complete Economic Implosion if US Dollar Loses Global Reserve Currency Status
Monica Crowley, a former official at the U.S. Treasury, starkly warned of the grave repercussions if the U.S. dollar ceases to be the world's reserve currency, including a potential economic implosion and the loss of American superpower status. She emphasized the dollar's pivotal role since World War II and its critical linkage to oil trade. Recent geopolitical tensions and policy missteps have significantly risked this position.
Economist Peter Schiff Advises 'Get Rid of Your US Dollars Now' — Warns USD's Reserve Currency Status in Jeopardy
Economist Peter Schiff has advised against holding U.S. dollars, citing the escalating global shift away from USD reliance, especially by nations in the Middle East and Southeast Asia. He asserts that the U.S. dollar's reserve status and American living standards are at risk. Schiff recommends divesting from the dollar and related financial assets. His warnings point to an imminent economic disaster and devaluation, suggesting an urgent move away from the dollar to mitigate personal financial loss.
Economist Warns of 'Catastrophic' Fall in American Living Standard — Elon Musk Weighs in on De-Dollarization, US Dollar Weaponization
Economist Peter St Onge issued a stark warning about rapid de-dollarization and the consequences of the U.S. leveraging the dollar as a political tool. He predicts severe inflation, a plummet in American living standards, and a diminished global role for the U.S. Recent sanctions and the dramatic decline in the dollar's reserve currency status have accelerated the shift away from the dollar in global markets. Tesla and Twitter CEO Elon Musk echoed these sentiments, suggesting that continued currency weaponization will lead nations to abandon the dollar.
Elon Musk Shares 'Massive Incentive to Move Money out of Bank Accounts'
Elon Musk highlighted a significant incentive for individuals and companies to shift funds from banks to Treasury Bills, citing the large interest rate disparity created by the U.S. Treasury and the Federal Reserve. He warns that this realization could lead to a rapid withdrawal of deposits, even from large banks traditionally considered fail-safe. The issue underscores broader concerns about the U.S. banking system's stability amid recent crises, with several banks failing and others potentially at risk in a continuing cycle of instability.
Notable 2023 Stories
Blackrock Files for Bitcoin Trust — Analyst Calls It a 'Real Deal' Spot Bitcoin ETF Filing
Blackrock, the world's leading asset manager, has initiated a move to launch a spot bitcoin exchange-traded fund (ETF) amidst the U.S. Securities and Exchange Commission's (SEC) crackdown on unregistered crypto platforms. Despite the SEC's stringent stance and recent charges against Coinbase for securities law violations, Blackrock has appointed the Nasdaq-listed company as the custodian for its trust. The move has sparked a mix of optimism and skepticism within the crypto community, with some viewing it as a bullish signal for cryptocurrencies.
DC Circuit Court of Appeals Chastises SEC for Grayscale Denial
On August 29, 2023, the U.S. Court of Appeals for the District of Columbia Circuit unanimously overturned the SEC's rejection of Grayscale's Bitcoin Exchange Traded Product, criticizing the SEC for arbitrary and inconsistent decisions compared to similar cases. The court's decision emphasized Grayscale's ETP's substantial similarity to previously approved bitcoin futures ETPs, highlighting the need for consistent and predictable regulatory actions. Now, Grayscale awaits the SEC's next move, which could include an appeal or a reassessment of the application, marking a significant moment in the ongoing dialogue between cryptocurrency ventures and regulatory bodies.
US Judge Rules XRP 'Not Necessarily a Security on Its Face,' Sending XRP Supporters Into Celebration
U.S. Judge Analisa Torres recently ruled that the cryptocurrency XRP cannot definitively be classified as a security, specifically in relation to its "programmatic sales," though institutional sales may differ. This nuanced decision partially granted and denied motions from both the SEC and Ripple Labs, reflecting the ongoing debate and complexity in determining the legal status of cryptocurrencies. The ruling recognized the distinct nature of XRP's institutional and programmatic sales. However, the case remains open, with further proceedings expected to address unresolved issues around XRP's classification as a security.
Robert Kiyosaki Expects Bitcoin to 'Become Priceless' When the Fed Launches Central Bank Digital Currency
"Rich Dad Poor Dad" author Robert Kiyosaki has expressed concerns over the potential launch of a central bank digital currency (CBDC) by the Federal Reserve, warning that it could lead to the end of privacy and an era of increased surveillance. He predicts that in such a scenario, assets like bitcoin will become invaluable. Urging investors to accumulate bitcoin, gold, silver, and cash now, Kiyosaki's cautionary stance is echoed by various U.S. lawmakers who are actively opposing the development of a CBDC, citing it as a threat to the American way of life. Despite these concerns, Federal Reserve Chairman Jerome Powell has indicated that the decision to issue a CBDC is still far off, with extensive research and consideration required.
Ethereum Co-Founder Vitalik Buterin's Address Sells Trillions of Airdropped Tokens, Causes Illiquid Coin Prices to Plummet
On March 7, Vitalik Buterin, co-founder of Ethereum, reportedly sold a substantial amount of various airdropped ERC20 tokens from his address, leading to a significant market reaction. The sell-off included billions and trillions of relatively obscure tokens, causing their values to plummet due to the shallow market liquidity. The move sparked debates within the crypto community regarding the motives behind such large-scale disposals, with some speculating tax compliance as a reason and others criticizing the impact on token prices.
2024 and the Path Forward
Overall, 2023 proved to be a transformative year for the cryptocurrency landscape and global economy. From shifting alliances among nations to warnings of economic upheaval, the year's headlines reflected the dynamic nature of these markets. As we bid farewell to this eventful year, the lessons learned and challenges faced will undoubtedly shape the path forward for bitcoin and the broader crypto economy in the years to come.
In 2024, many crypto enthusiasts predict a bullish trend, fueled by widespread acceptance via spot bitcoin ETFs and the tokenization of tangible assets. Optimistic shifts in the broader economic landscape, particularly anticipated cuts in interest rates, are likely to enhance market morale, benefiting BTC and the broader crypto economy. A blend of blockchain innovations and promising liquidity scenarios primes the coming year to be a potentially rewarding trip around the sun for crypto proponents.
What are your thoughts on the hottest Bitcoin.com News stories in 2023? Share your opinions in the comments section below.
Frequently Asked Questions
Who is the owner of the gold in a gold IRA
The IRS considers anyone who owns gold to be “a form money” and therefore subject to taxation.
To be eligible for the tax-free status, you must possess at least $10,000 gold and have had it stored for at least five consecutive years.
Although gold can help to prevent inflation and price volatility, it's not sensible to have it if it's not going to be used.
If you plan to eventually sell the gold, you'll need a report on its value. This could impact the amount of capital gains taxes your owe if you cash in your investments.
To find out what options you have, consult an accountant or financial planner.
How Much of Your IRA Should Include Precious Metals?
When investing in precious metals, the most important thing to know is that they aren't just for wealthy people. They don't require you to be wealthy to invest in them. 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. Shares in precious metals-producing companies could be an option. Your retirement plan provider may offer an IRA rollingover program.
You'll still get the benefit of precious metals no matter which country you live in. Even though they aren't stocks, they still offer the possibility of long-term growth.
They also tend to appreciate over time, unlike traditional investments. If you decide to sell your investment, you will likely make more than with traditional investments.
How much do gold IRA fees cost?
Six dollars per month is the fee for an Individual Retirement Account (IRA). This includes account maintenance fees and investment costs for your chosen investments.
You may have to pay additional fees if you want to diversify your portfolio. These fees can vary depending on which type of IRA account you choose. Some companies offer free checking, but charge monthly fees for IRAs.
Most providers also charge an annual management fee. These fees range between 0% and 1 percent. The average rate is.25% each year. These rates are usually waived if you use a broker such as TD Ameritrade.
What are the pros & cons of a Gold IRA?
An Individual Retirement account (IRA) is a better option than regular savings accounts in that interest earned is exempted from tax. An IRA is a great option for those who want to save money, but don't want tax on any interest earned. However, there are also disadvantages to this type of investment.
You may lose all your accumulated savings if you take too much out of your IRA. The IRS may prevent you from taking out your IRA funds until you reach 59 1/2. You will likely have to pay a penalty fee if you withdraw funds from an IRA.
The downside is that managing your IRA requires fees. Most banks charge 0.5% to 2.0% per annum. Other providers charge monthly management charges ranging anywhere from $10 to $50.
You can purchase insurance if you want to keep your money out of a bank. Insurance companies will usually require that you have at least $500,000. Some insurers may require you to have insurance that covers losses up $500,000.
If you choose to have a gold IRA you will need to establish how much gold to use. Some providers restrict the amount you can own in gold. Some providers allow you to choose your weight.
You will also have to decide whether to purchase futures or physical gold. Gold futures contracts are more expensive than physical gold. However, futures contracts give you flexibility when buying gold. They allow you to set up a contract with a specific expiration date.
It is also important to choose the type of insurance coverage that you need. The standard policy does NOT include theft protection and loss due to fire or flood. However, it does cover damage caused by natural disasters. You may consider adding additional coverage if you live in an area at high risk.
Insurance is not enough. You also need to think about the cost of gold storage. Storage costs are not covered by insurance. Additionally, safekeeping is usually charged by banks at around $25-$40 per monthly.
If you decide to open a gold IRA, you must first contact a qualified custodian. A custodian is responsible for keeping track of your investments. They also ensure that you adhere to federal regulations. Custodians are not allowed to sell your assets. Instead, they must maintain them for as long a time as you request.
Once you have chosen the right type of IRA to suit your needs, it is time to fill out paperwork defining your goals. You should also include information about your desired investments, such as stocks or bonds, mutual funds, real estate, and mutual funds. Your monthly investment goal should be stated.
You will need to fill out the forms and send them to your chosen provider together with a check for small deposits. The company will review your application and send you a confirmation letter.
When opening a gold IRA, you should consider using a financial planner. A financial planner is an expert in investing and can help you choose the right type of IRA for you. You can also reduce your insurance costs by working with them to find lower-cost alternatives.
How do I open a Precious Metal IRA
It is important to decide if you would like an Individual Retirement Account (IRA). If you do, you must open the account by completing Form 8606. You will then need to complete Form 5204 in order to determine which type IRA you are eligible. This form must be submitted within 60 days of the account opening. Once this has been completed, you can begin investing. You can also contribute directly to your paycheck via payroll deduction.
Complete Form 8903 if your Roth IRA option is chosen. Otherwise, the process will look identical to an existing IRA.
To be eligible to have a precious metals IRA you must meet certain criteria. The IRS states that you must be at least 18 and have earned income. Your earnings cannot exceed $110,000 per year ($220,000 if married and filing jointly) for any single tax year. Additionally, you must make regular contributions. These rules will apply regardless of whether your contributions are made through an employer or directly out of your paychecks.
An IRA for precious metals allows you to invest in gold and silver as well as platinum, rhodium, and even platinum. However, physical bullion will not be available for purchase. This means that you will not be allowed to trade shares or bonds.
You can also use your precious metals IRA to invest directly in companies that deal in precious metals. This option can be provided by some IRA companies.
There are two main drawbacks to investing through an IRA in precious metallics. First, they aren't as liquid than stocks and bonds. This makes them harder to sell when needed. Second, they don't generate dividends like stocks and bonds. So, you'll lose money over time rather than gain it.
What is the value of a gold IRA
There are many advantages to a gold IRA. It can be used to diversify portfolios and is an investment vehicle. You control how much money goes into each account and when it's withdrawn.
Another option is to rollover funds from another retirement account into a IRA with gold. This will allow you to transition easily if it is your decision to retire early.
The best thing about investing in gold IRAs is that you don’t need any special skills. They're available at most banks and brokerage firms. You don't have to worry about penalties or fees when withdrawing money.
However, there are still some drawbacks. Gold has always been volatile. It's important to understand the reasons you're considering investing in gold. Is it for growth or safety? Is it for insurance purposes or a long-term strategy? Only by knowing the answer, you will be able to make an informed choice.
If you want to keep your gold IRA open for life, you might consider purchasing more than one ounce. A single ounce isn't enough to cover all of your needs. Depending on the purpose of your gold, you might need more than one ounce.
You don't have to buy a lot of gold if your goal is to sell it. You can even live with just one ounce. But, those funds will not allow you to buy anything.
What is a Precious Metal IRA, and how can you get one?
You can diversify your retirement savings by investing in precious metal IRAs. This allows you to invest in gold, silver and platinum as well as iridium, osmium and other rare metals. These are “precious metals” because they are hard to find, and therefore very valuable. They are great investments for your money, and they can protect you from inflation or economic instability.
Precious metals are sometimes called “bullion.” Bullion refers to the actual physical metal itself.
You can buy bullion through various channels, including online retailers, large coin dealers, and some grocery stores.
With a precious metal IRA, you invest in bullion directly rather than purchasing shares of stock. This allows you to receive dividends every year.
Precious metal IRAs are not like regular IRAs. They don't need paperwork and don't have to be renewed annually. You pay only a small percentage of your gains tax. You also have unlimited access to your funds whenever and wherever you wish.
Statistics
- You can only purchase gold bars at least 99.5% purity. (forbes.com)
- 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)
- Contribution limits$6,000 (49 and under) $7,000 (50 and up)$6,000 (49 and under) $7,000 (50 and up)$58,000 or 25% of your annual compensation (whichever is smaller) (lendedu.com)
- (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)
