Concerns Raised by Gary Gensler
The chairman of the U.S. Securities and Exchange Commission (SEC), Gary Gensler, recently expressed concerns regarding investing in crypto assets. In a series of posts on the social media platform X, Gensler highlighted the potential risks and lack of regulatory compliance in the crypto industry. These warnings come at a time when there is growing anticipation for the approval of spot bitcoin exchange-traded funds (ETFs).
Lack of Compliance with Applicable Laws
Gensler emphasized that individuals and entities offering crypto asset investments or services may not be adhering to relevant laws, including federal securities laws. This raises concerns over the lack of transparency and investor protection in the crypto market. Investors should be aware that they may not have access to crucial information and necessary safeguards when investing in crypto asset securities.
Exceptional Risk and Volatility
The SEC chairman also highlighted the exceptionally risky and volatile nature of investments in crypto assets. He pointed out that numerous major platforms and crypto assets have experienced insolvency or significant value loss. This underscores the importance of understanding and acknowledging the substantial risks associated with investing in cryptocurrencies.
Exploitation and Fraud
Gensler cautioned investors about the prevalence of fraud and scams in the crypto market. Fraudsters take advantage of the growing popularity of crypto assets to deceive retail investors. These scams can include bogus coin offerings, Ponzi and pyramid schemes, and outright theft where project promoters abscond with investors' funds. Investors need to exercise caution and be vigilant to avoid falling victim to such fraudulent activities.
Spot Bitcoin ETF Decision Deadline
The SEC is expected to make a decision on spot bitcoin ETFs by Wednesday, which coincides with the deadline for a proposal by Cathie Wood's Ark Invest and 21shares. Some individuals speculate that Gensler's warnings on Monday indicate an imminent approval of spot bitcoin ETFs. The timing of his statements has sparked discussions and anticipation among social media users.
Controversy Surrounding Gensler
Gary Gensler has faced criticism for his strict enforcement-oriented approach to regulating the crypto industry. Certain U.S. lawmakers are seeking to remove him from his position as chairman of the SEC. This controversy adds another layer of complexity to the ongoing discussions and decisions regarding cryptocurrency regulation.
In conclusion, SEC Chairman Gary Gensler's warnings about crypto investing highlight the potential risks, lack of regulatory compliance, and prevalence of fraud in the crypto industry. Investors should exercise caution and conduct thorough research before engaging in crypto asset investments. The upcoming decision on spot bitcoin ETFs will undoubtedly have a significant impact on the future of cryptocurrency investment opportunities.
Frequently Asked Questions
Should You Invest in gold for Retirement?
The answer will depend on how many dollars you have saved so far and whether you had gold as an investment option at the time. If you're unsure about which option to choose then consider investing in both.
Gold offers potential returns and is therefore a safe investment. It is a good choice for retirees.
While most investments offer fixed rates of return, gold tends to fluctuate. Its value fluctuates over time.
However, it doesn't necessarily mean that you shouldn't invest your money in gold. It just means that you need to factor in fluctuations to your overall portfolio.
Another advantage of gold is its tangible nature. Unlike stocks and bonds, gold is easier to store. It's also portable.
You can always access gold as long your place it safe. Physical gold is not subject to storage fees.
Investing in gold can help protect against inflation. It's a great way to hedge against rising prices, as gold prices tend to increase along with other commodities.
A portion of your savings can be invested in something that doesn't go down in value. Gold tends to rise when the stock markets fall.
Gold investment has another advantage: You can sell it anytime. As with stocks, your position can be liquidated whenever you require cash. You don’t even need to wait until retirement to liquidate your position.
If you do decide to invest in gold, make sure to diversify your holdings. Don't put all your eggs on one basket.
Also, don't buy too much at once. Start by purchasing a few ounces. Then add more as needed.
The goal is not to become rich quick. Rather, it's to build up enough wealth so you won't need to rely on Social Security benefits.
Gold may not be the most attractive investment, but it could be a great complement to any retirement strategy.
Should You Buy or Sell Gold?
Gold was a safe investment option for those who were in financial turmoil. Today, many people are looking to precious metals like gold and avoiding traditional investments like bonds and stocks.
While gold prices have been rising in recent years they are still low relative to other commodities, such as silver and oil.
Some experts believe that this could change very soon. Experts predict that gold prices will rise sharply in the wake of another global financial collapse.
They also pointed out that gold is gaining popularity due to its perceived value, and potential return.
Consider these things if you are thinking of investing in gold.
- First, consider whether or not you need the money you're saving for retirement. It's possible to save for retirement without putting your savings into gold. Gold does offer an extra layer of protection for those who reach retirement age.
- Second, be sure to understand your obligations before you purchase gold. Each offer varying degrees of security and flexibility.
- Last but not least, gold doesn't provide the same level security as a savings account. If you lose your gold coins, you may never recover them.
If you are thinking of buying gold, do your research. If you already have gold, make sure you protect it.
What is the tax on gold in Roth IRAs?
A tax assessment for an investment account will be based on the current market value, and not what you paid initially. All gains, even if you have invested $1,000 in a mutual funds stock, are subject to tax.
But if you put the money into a traditional IRA or 401(k), there's no tax when you withdraw the money. Only earnings from capital gains and dividends are subject to tax. These taxes do not apply to investments that have been held for more than one year.
The rules that govern these accounts differ from one state to the next. 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 up to April 1st. New York allows you to wait until age 70 1/2. To avoid penalties, plan ahead so you can take distributions at the right time.
How is gold taxed within an IRA?
The fair market value at the time of sale is what determines how much tax you pay on gold sales. If you buy gold, there are no taxes. It's not considered income. If you decide to make a sale of it, you'll be entitled to a taxable loss if the value goes up.
You can use gold as collateral to secure loans. When you borrow against your assets, lenders try to find the highest return possible. For gold, this means selling it. It's not guaranteed that the lender will do it. They might just hold onto it. They may decide to resell it. Either way you will lose potential profit.
To avoid losing money, only lend against gold if you intend to use it for collateral. You should leave it alone if you don't intend to lend against it.
What precious metals could you invest in to retire?
The best precious metal investments are gold and silver. Both are easy to sell and can be bought easily. They are a great way to diversify your portfolio.
Gold: This is the oldest form of currency that man has ever known. It's also very safe and stable. Because of this, it is considered a great way of preserving wealth during times when there are uncertainties.
Silver: Silver has been a favorite among investors for years. 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 like silver or gold in that it is durable and resistant to corrosion. However, it's much more expensive than either of its counterparts.
Rhodium. Rhodium is used as a catalyst. It is also used for jewelry making. It is relatively affordable when compared to other types.
Palladium (or Palladium): Palladium can be compared to platinum, but is much more common. It's also less expensive. Investors looking to add precious and rare metals to their portfolios love it for these reasons.
Is buying gold a good option for retirement planning?
Although it may not look appealing at first, buying gold for investment is worth considering when you consider the global average gold consumption per year.
Physical bullion is the most popular method of investing in gold. There are other ways to invest gold. Research all options carefully and make an informed decision about what you desire from your investments.
If you don't want to keep your wealth safe, buying shares in companies that extract gold and mining equipment could be a better choice. If you require cash flow, gold stocks can work well.
ETFs allow you to invest in exchange-traded funds. These funds give you exposure, but not actual gold, by investing in gold-related securities. These ETFs typically include stocks from gold miners, precious metallics refiners, commodity trading companies, and other commodities.
- 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)
- 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)
- (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)
- You can only purchase gold bars at least 99.5% purity. (forbes.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)
- 7 U.S. Code SS7 – Designation boards of trade as contract market authorities
- 26 U.S. Code SS 408 – Individual retirement funds
- Saddam Hussein's Invasion Helped Uncage a Bear In 1990 – WSJ
- You want to keep gold in your IRA at home? It's not exactly legal – WSJ
The best place to buy silver or gold online
To buy gold, you must first understand how it works. It is a precious metal that is very similar to platinum. It's rare and often used to make money due its resistance and durability to corrosion. It's difficult to use, so most people prefer purchasing jewelry made from it rather than actual bars.
Today, there are two types available in gold coins: one is legal tender and 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.
The next thing you should know when looking to buy gold is where to do it from. If you want to purchase gold directly from a dealer, then a few options are available. You can start by visiting your local coin shop. You can also go to a reputable website such as eBay. You may also be interested in buying gold through private sellers online.
Private sellers are individuals who offer gold for sale, either at wholesale prices or retail prices. When selling gold through private sellers, you pay a commission fee of 10% to 15% per transaction. This means that you will get less back from a private seller than if you sell it through a coin shop or on eBay. This option can be a good choice for investing in gold because it allows you to control the 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. Physical gold should be stored in an impenetrable container, such a vault and safety deposit box to ensure its safety.
If you are looking to purchase gold on your own, you have two options: a bank or an pawnshop. A bank can provide you with a loan to cover the amount you wish to invest in gold. The pawnshop is a small business that allows customers to borrow money to buy items. Banks tend to charge higher interest rates, while pawnshops are typically lower.
A third way to buy gold? Simply ask someone else! Selling gold is easy too. Set up a simple account with GoldMoney.com and you will start receiving payments instantly.
By: Kevin Helms
Title: SEC Chairman Gary Gensler Issues Warnings About Crypto Investing
Sourced From: news.bitcoin.com/sec-chair-gary-gensler-issues-crypto-warnings-as-spot-bitcoin-etf-decision-looms/
Published Date: Tue, 09 Jan 2024 00:30:05 +0000