Investments That Generate Alpha: Boneparth's Perspective
In a recent discussion, Douglas Boneparth, president and founder of Bona Fide Wealth, shed light on the emerging spot bitcoin exchange-traded funds (ETFs) and the categorization of bitcoin as an asset class. Engaging with Eric Balchunas, Bloomberg's senior ETF analyst, on the "Bloomberg ETF IQ" show, Boneparth compared bitcoin to what he terms digital gold.
"I view bitcoin in its most simplistic form as digital gold, as a digital store of value," Boneparth said. "While the price action of bitcoin may not always align with its store of value status, there is room for alternative investments in a portfolio. Clients are constantly seeking investments that are uncorrelated or have the potential to produce alpha. These are the types of investments that will always have some appeal."
When asked about the level of interest in the new spot bitcoin ETF, especially from the 'baby boomer' generation, Boneparth noted a lack of significant inbound calls. "I expected to receive inquiries from a few individuals, particularly baby boomers who were previously uninterested in purchasing cryptocurrency through an exchange. I primarily work with individuals in their mid to late 30s, and we have been discussing and educating them about cryptocurrency and bitcoin long before these products were available."
The Clash Between Crypto Natives and Traditional Finance
During the show, host Katie Greifeld asked Boneparth about his perspective on the differences between native crypto companies like Bitwise and established trade finance firms such as Blackrock and Fidelity. Boneparth referenced Bitwise's contributions to Bitcoin Core developers and suggested that individuals who believe in blockchain and crypto may find a crypto-native fund more appealing. Ultimately, Boneparth concluded that it remains to be seen which side will prevail as time goes on.
"The question is whether these native crypto companies have an edge over the massive shops like Blackrock or Fidelity, which also have robust crypto desks and talented individuals," Boneparth told Greifeld. "They are on equal footing, so we will find out if it makes sense to choose a native crypto company over one of the big players."
What are your thoughts on the statements made by the president of Bona Fide Wealth? Feel free to share your opinions in the comments section below.
Frequently Asked Questions
Is it a good idea to open a Precious Metal IRA
It is essential to be aware of the fact that precious metals do not have insurance coverage before opening an IRA. It is impossible to get back money if you lose your investment. This includes any loss of investments from theft, fire, flood or other circumstances.
Protect yourself against this type of loss by investing in physical gold or silver coins. These coins have been around for thousands and represent a real asset that can never be lost. If you were to offer them for sale today, they would likely fetch you more than you paid when you bought them.
Consider a reputable business that offers low rates and good products when opening an IRA. It is also a smart idea to use a third-party trustee who will help you have access to your assets at all times.
If you decide to open an account, remember that you won't see any returns until after you retire. So, don't forget about the future!
How much should precious metals make up your portfolio?
To answer this question, we must first understand what precious metals are. Precious Metals are elements that have a very high relative value to other commodities. They are therefore very attractive for investment and trading. Gold is today the most popular precious metal.
But, there are other types of precious metals available, including platinum and silver. While gold's price fluctuates during economic turmoil, it tends to remain relatively stable. It is not affected by inflation or deflation.
As a general rule, the prices for all precious metals tend to increase with the overall market. They do not always move in the same direction. If the economy is struggling, the gold price tends to rise, while the prices for other precious metals tends to fall. Investors expect lower interest rate, making bonds less appealing investments.
When the economy is healthy, however, the opposite effect occurs. Investors want safe assets such Treasury Bonds and are less inclined to demand precious metals. Because they are rare, they become more pricey and lose value.
Therefore, to maximize profits from investing in precious metals, you must diversify across multiple precious metals. Because precious metals prices are subject to fluctuations, it is best to invest across multiple precious metal types, rather than focusing on one.
What is the cost of gold IRA fees
A monthly fee of $6 for an Individual Retirement Account is charged. This includes account maintenance and any investment costs.
To diversify your portfolio you might need to pay additional charges. The fees you pay will vary depending on the type of IRA that you choose. Some companies offer free checking accounts, but charge monthly fees to open IRA accounts.
A majority of providers also charge annual administration fees. These fees can range from 0% up to 1%. The average rate is.25% per year. However, these rates are typically waived if you use a broker like TD Ameritrade.
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.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)
- The price of gold jumped 131 percent from late 2007 to September 2011, when it hit a high of $1,921 an ounce, according to the World Gold Council. (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)
- If you accidentally make an improper transaction, the IRS will disallow it and count it as a withdrawal, so 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)
- Saddam Hussein's Invasion Helped Uncage a Bear In 1990 – WSJ
- How do you keep your IRA Gold at Home? It's Not Exactly Lawful – WSJ
- 7 U.S. Code SS7 – Designation Boards of Trade as Contract Markets
- 26 U.S. Code SS 408 – Individual retirement accounts
The best way to buy gold (or silver) online
To buy gold, you must first understand how it works. The precious metal gold is similar to platinum. It's very rare and is used as money because of its durability and resistance to corrosion. It is hard to use, so most people prefer jewelry made of it to real bars of gold.
There are two types today of gold coins. One is legal tender while the other is bullion. Legal tender coins are minted for circulation in a country and usually include denominations like $1, $5, $10, etc.
Bullion coins should only be used for investment purposes. Inflation can cause their value to increase.
They aren’t exchangeable in any currency exchange. For example, if a person buys $100 worth of gold, he/she gets 100 grams of gold with a value of $100. Every dollar spent on gold purchases, the buyer receives one gram of gold.
When looking to buy precious metals, the next thing you should be aware of is where it can be purchased. There are several options available if your goal is to purchase gold from a dealer. First off, you can go through your local coin shop. Another option is to go through a reputable site like eBay. You can also look into buying gold online from private sellers.
Private sellers are individuals that offer gold at wholesale or retail prices. When selling gold through private sellers, you pay a commission fee of 10% to 15% per transaction. Private sellers will typically get you less than a coin shop, eBay or other online retailers. However, this option is often a great choice when investing in gold since it gives you more control over the item's price.
Another way to buy gold is by investing in physical gold. It is easier to store physical gold than paper certificates. But, you still have to take care of it. To ensure that your physical gold remains safe, you need to secure it in an impenetrable container such as a vault or safety deposit box.
A bank or pawnshop can help you buy gold. A bank will provide you with a loan that allows you to purchase the amount of gold you desire. Customers can borrow money from pawnshops to purchase items. Banks charge higher interest rates than those offered by pawn shops.
Another way to purchase gold is to ask another person to do it. Selling gold is simple too. Contact a company such as GoldMoney.com, and you can set up a simple account and start receiving payments immediately.
By: Jamie Redman
Title: Bona Fide Wealth President: Bitcoin as ‘Digital Gold' and the Battle Between Crypto Natives and Traditional Finance
Sourced From: news.bitcoin.com/bona-fide-wealth-president-defines-bitcoin-as-digital-gold-discusses-showdown-between-crypto-natives-and-traditional-finance/
Published Date: Tue, 30 Jan 2024 22:30:30 +0000