Israel recently made headlines with a bold initiative promoted by Prime Minister Netanyahu to remove 200 shekel bills from circulation, signaling a shift towards a cashless economy in the coming years. The primary motivation behind this move is the crackdown on financial crimes and black money within Arab society.
The Implications of Abolishing 200 Shekel Notes
The Israeli 200 shekel bills hold significant value, accounting for over 100 billion shekels and comprising nearly 80% of public bank notes. Advocates of this initiative claim that most of these bills are hoarded for illicit purposes rather than legitimate transactions. By eliminating these bills, the government aims to recover billions of shekels over the next few years and expose tax evaders.
Proposed Policy Measures to Combat Black Capital
The policy document outlines a phased approach to eradicate cash transactions entirely. This includes limiting cash transactions, leveraging AI tools for monitoring tax evasion, launching collaborative enforcement efforts, banning cash substitutes, and seizing digital currencies linked to illicit activities.
Israel's Cash Restrictions and Recent Reforms
Israel has been progressively tightening regulations on cash usage, with restrictions on cash holdings and large transactions. The government aims to curtail criminal activities associated with cash transactions and promote non-cash payment methods.
Gaza's State of Cash and Economic Challenges
The cash shortage in Gaza has exacerbated the already dire living conditions, hindering access to essential goods and services. The region's reliance on cash has been further strained due to banking disruptions and power outages.
The Path to a Cashless Future
Israel's transition towards a cashless society signifies a broader trend of increasing control and surveillance. As governments worldwide embrace digital currencies and restrict cash usage, individuals are encouraged to explore alternatives like Bitcoin to safeguard their financial independence.
In conclusion, the shift towards a cashless economy poses challenges and opportunities for individuals and nations alike. Understanding the implications and exploring decentralized alternatives like Bitcoin can empower individuals to navigate this evolving financial landscape.
Frequently Asked Questions
What Should Your IRA Include in Precious Metals?
When investing in precious metals, the most important thing to know is that they aren't just for wealthy people. You don't need to be rich to make an investment in precious metals. There are many methods to make money off of silver and gold investments.
You might also be interested in buying physical coins, such bullion rounds or bars. It is possible to also purchase shares in companies that make precious metals. You may also be interested in an IRA transfer program offered by your retirement provider.
You can still get benefits from precious metals regardless of what choice you make. These metals are not stocks, but they can still provide long-term growth.
And unlike traditional investments, they tend to increase in value over time. This means that if you decide on selling your investment later, you'll likely get more profit than you would with traditional investing.
How much gold can you keep in your portfolio
The amount that you want to invest will dictate how much money it takes. For a small start, $5k to $10k is a good range. As your business grows, you might consider renting out office space or desks. Renting out desks and other equipment is a great way to save money on rent. It's only one monthly payment.
It's also important to determine what type business you'll run. In my case, we charge clients between $1000-2000/month, depending on what they order. If you are doing this type of thing, it is important to think about how much you can expect from each client.
As freelance work requires you to be paid freelancers, your monthly salary won't be as high as mine. So you might only get paid once every 6 months or so.
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.
What are the fees for an IRA that holds gold?
The Individual Retirement Account (IRA), fee is $6 per monthly. This includes account maintenance fees and investment costs for your chosen investments.
Diversifying your portfolio may require you to pay additional fees. These fees can vary depending on which type of IRA account you choose. Some companies offer free checking accounts, but charge monthly fees to open IRA accounts.
Most providers also charge annual management costs. These fees can range from 0% up to 1%. The average rate is.25% annually. These rates can be waived if the broker is TD Ameritrade.
What precious metals could you invest in to retire?
Gold and silver are the best precious metal investments. Both can be easily bought and sold, and have been around since forever. These are great options to diversify your portfolio.
Gold: This is the oldest form of currency that man has ever known. It is very stable and secure. Because of this, it is considered a great way of preserving wealth during times when there are uncertainties.
Silver: Silver has always been popular among investors. It's a great option for those who want stability. 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. It's durable and resists corrosion, just like gold and silver. However, it's much more expensive than either of its counterparts.
Rhodium: Rhodium is used in catalytic converters. It's also used in jewelry making. And, it's relatively cheap compared to other types of precious metals.
Palladium: Palladium has a similarity to platinum but is more rare. It's also more affordable. For these reasons, it's become a favorite among investors looking to add precious metals to their portfolios.
Statistics
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
- (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)
- 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)
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
- 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)
External Links
finance.yahoo.com
cftc.gov
investopedia.com
law.cornell.edu
- 7 U.S. Code SS7 – Designation boards of trade as contract market authorities
- 26 U.S. Code SS 408 – Individual retirement funds
How To
Three Ways to Invest In Gold For Retirement
It is important to understand the role of gold in your retirement plan. You can invest in gold through your 401(k), if you have one at work. You may also want to consider investing in gold outside of your workplace. You could, for example, open a custodial bank account at Fidelity Investments if your IRA (Individual Retirement Account) is open. Or, if you don't already own any precious metals, you may want to consider buying them directly from a reputable dealer.
These are three easy rules to remember if you invest in gold.
- Buy Gold With Your Cash – Do not use credit cards to purchase gold. Instead, invest in cash. This will help protect you against inflation and keep your purchasing power high.
- Physical Gold Coins – Physical gold coins are better than a paper certificate. The reason for this is that physical gold coins are much more easily sold than certificates. Physical gold coins don't require storage fees.
- Diversify Your Portfolio – Never put all of your eggs in one basket. Also, diversify your wealth and invest in different assets. This reduces risk and allows you to be more flexible during market volatility.
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By: Efrat Fenigson
Title: Israel's Move Towards a Cashless Society: What It Means for Citizens and Neighbors
Sourced From: bitcoinmagazine.com/markets/israel-goes-cashless
Published Date: Wed, 25 Sep 2024 15:34:43 GMT
