Ricardo Salinas, the billionaire owner of Mexican conglomerate Grupo Salinas, recently announced that he has allocated a significant 70% of his investment portfolio to bitcoin and bitcoin-related assets.
Shift in Investment Strategy
Salinas, a prominent bitcoin advocate, shared that the remaining 30% of his portfolio includes gold and shares in his own companies. He emphasized, "I don't have any bonds, and I only hold stocks in my own businesses."
Increasing Bitcoin Exposure
With an estimated net worth of $4.8 billion, Salinas has notably raised his bitcoin exposure from 10% in the previous year. He has been vocal about his support for bitcoin and aims to lead his bank, Banco Azteca, in becoming the first in Mexico to embrace the digital currency.
Business Strategy
Salinas is in the process of delisting his flagship company, Grupo Elektra, from public markets to gain more autonomy in managing the business. This decision is aimed at freeing him from shareholder influence and enabling him to operate according to his vision.
Challenges and Resilience
Despite facing challenges such as a 70% drop in Grupo Elektra's share price last year, resulting in a substantial loss of wealth, Salinas remains undeterred. He is currently entangled in legal disputes with the Mexican government over alleged tax arrears.
Salinas, however, maintains his optimism, asserting, "Despite the adversities in Mexico, our enterprises are thriving. I now have the freedom to pursue my objectives."
Commitment to Bitcoin
Despite the legal and financial hurdles, Salinas remains steadfast in his commitment to Bitcoin as a fundamental component of his financial strategy. He has emerged as a key advocate for Bitcoin in Latin America.
Bitcoin's Potential
Salinas' unwavering support for Bitcoin underscores the cryptocurrency's potential as a long-term store of value. If his investment proves successful, Salinas could establish himself as an early corporate pioneer in endorsing Bitcoin.
This article on Mexican Billionaire Ricardo Salinas and his substantial Bitcoin investment was originally published on Bitcoin Magazine.
Frequently Asked Questions
Can I have physical gold in my IRA
Not only is gold paper currency, but it's also money. Gold is an asset people have used for thousands years as a place to store value and protect their wealth from economic uncertainty and inflation. Today, investors invest in gold as part a diversified portfolio. This is because gold tends do better in financial turmoil.
Today, many Americans invest in precious metals such as gold and silver rather than stocks and bonds. It's not guaranteed that you'll make any money investing gold, but there are several reasons it might be worthwhile to add gold to retirement funds.
Another reason is the fact that gold historically has performed better than other assets in times of financial panic. The S&P 500 declined 21 percent during the same period. Gold prices increased nearly 100 per cent between August 2011 – early 2013. Gold was one of the few assets that performed better than stocks during turbulent market conditions.
Another benefit to investing in gold? It has virtually zero counterparty exposure. Your stock portfolio can fall, but you will still own your shares. But if you own gold, its value will increase even if the company you invested in defaults on its debt.
Finally, gold provides liquidity. This means that, unlike most other investments, you can sell your gold anytime without worrying about finding another buyer. The liquidity of gold makes it a good investment. This allows you to profit from short-term fluctuations on the gold market.
Is buying gold a good option for retirement planning?
Although gold investment may not seem appealing at first glance due to the high average global gold consumption, it's worth considering.
Physical bullion is the most popular method of investing in gold. You can also invest in gold in other ways. You should research all options thoroughly before making a decision on which option you prefer.
For example, purchasing shares of companies that extract gold or mining equipment might be a better option if you aren't looking for a safe place to store your wealth. Owning gold stocks should work well if you need cash flow from your investment.
You also can put your money into exchange-traded funds (ETFs), which essentially give you exposure to the price of gold by holding gold-related securities instead of actual gold. These ETFs usually include stocks of precious metals refiners or gold miners.
How much of your portfolio should you hold in precious metals
To answer this question, we must first understand what precious metals are. Precious metals have elements with an extremely high worth relative to other commodity. This makes them highly valuable for both investment and trading. Today, gold is the most commonly traded precious metal.
But, there are other types of precious metals available, including platinum and silver. The price of gold fluctuates, but it generally remains stable during times of economic turmoil. It also remains relatively unaffected by inflation and deflation.
As a general rule, the prices for all precious metals tend to increase with the overall market. However, they may not always move in synchrony with each other. For instance, gold's price will rise when the economy is weak, while precious metals prices will fall. This is because investors expect lower interest rates, making bonds less attractive investments.
However, when an economy is strong, the reverse effect occurs. Investors favor safe assets like Treasury Bonds, and less precious metals. They are more rare, so they become more expensive and less valuable.
Diversifying across precious metals is a great way to maximize your investment returns. It is also a good idea to diversify your investments in precious metals, as prices tend to fluctuate.
What is the tax on gold in Roth IRAs?
An investment account's tax rate is determined based upon its current value, rather than what you originally paid. If you invest $1,000 in mutual funds or stocks and then later sell them, all gains are subjected to taxes.
The money can be withdrawn tax-free if it's deposited in a traditional IRA (or 401(k)). Capital gains and dividends earn you no tax. This applies only to investments made for longer than one-year.
These accounts are subject to different rules depending on where you live. In Maryland, for example, withdrawals must be made within 60 days of reaching the age of 59 1/2 in order to qualify. Massachusetts allows you to delay withdrawals until April 1. And in New York, you have until age 70 1/2 . To avoid penalties, plan ahead so you can take distributions at the right time.
Can the government take your gold
You own your gold and therefore the government cannot seize it. You have earned it by working hard for it. It is yours. There may be exceptions to this rule. You can lose your gold if you have been convicted for fraud against the federal governments. You can also lose precious metals if you owe taxes. However, even if you don't pay your taxes, your gold can be kept as property of the United States Government.
Statistics
- Indeed, several financial advisers interviewed for this article suggest you invest 5 to 15 percent of your portfolio in gold, just in case. (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)
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (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)
External Links
law.cornell.edu
- 7 U.S. Code SS7 – Designation board of trade as contract marketplaces
- 26 U.S. Code SS 408 – Individual retirement account
irs.gov
investopedia.com
- Are You a Good Candidate for a Gold IRA
- What are the Options Types, Spreads. Example. And Risk Metrics
wsj.com
- Saddam Hussein’s InvasionHelped Uncage a Bear In 1989 – WSJ
- Want to Keep Gold in Your IRA at Home? It's not exactly legal – WSJ
How To
Tips for Investing in Gold
One of the most sought-after investment strategies is investing in gold. There are many benefits to investing in gold. There are many ways you can invest in gold. Some people prefer to buy gold coins in physical form, while others prefer to invest in gold ETFs.
Before you purchase any type or gold, here are some things to think about.
- First, check to see if your country permits you to possess gold. If the answer is yes, you can go ahead. Otherwise, you can look into buying gold from abroad.
- The second thing you need to do is decide what type of gold coins you want. You have options: you can choose from yellow gold, white or rose gold.
- Thirdly, you should take into consideration the price of gold. Start small and move up. It is important to diversify your portfolio whenever you purchase gold. You should invest in different assets such as stocks, bonds, real estate, mutual funds, and commodities.
- You should also remember that gold prices can change often. It is important to stay up-to-date with the latest trends.
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By: Vivek Sen Bitcoin
Title: Mexican Billionaire Ricardo Salinas Reveals 70% Bitcoin Investment
Sourced From: bitcoinmagazine.com/uncategorized/mexican-billionaire-salinas-says-he-has-70-bitcoin-related-exposure
Published Date: Tue, 04 Mar 2025 16:46:52 +0000
