Bitcoin and Gold Price Appreciation Drive Tether's Record Profit
In the last quarter of 2023, Tether Holdings Limited achieved a remarkable milestone with a net profit of $2.85 billion. This record-breaking performance contributed to Tether's overall net profit of $6.2 billion for the year. The stablecoin issuer's success can be attributed to various factors, including the appreciation of Bitcoin and gold reserves.
Net Profit Composition
Tether Holdings Limited's latest consolidated reserves report reveals that the net profit of $2.85 billion in Q4 2023 was primarily generated from interest on U.S. treasuries holdings, amounting to $1 billion. The remaining portion came from the appreciation of gold and bitcoin reserves.
For the entire year of 2023, Tether's net profit reached $6.2 billion. Approximately $4 billion of this amount was derived from net operating profits generated by U.S. Treasuries, Reverse Repo, and Money market funds. The remaining $2.2 billion was generated from other asset classes.
Excess Reserves and Secured Loans
Tether Holdings Limited also experienced a significant increase in excess reserves, reaching a record high of $5.4 billion, a $2.2 billion increase from the previous quarter. As a result, Tether's secured loans, totaling $4.8 billion, are fully backed by the undistributed accumulated profits from excess reserves.
Tether's CEO, Paolo Ardoino, commented on the company's financial performance and the latest BDO attestation. He emphasized Tether's commitment to transparency, stability, and responsible financial management. Ardoino highlighted the achievement of the highest percentage of reserves in Cash and Cash Equivalents, showcasing the company's dedication to liquidity and stability. He also mentioned Tether's investments in sustainable energy, Bitcoin mining, artificial intelligence, and peer-to-peer technology as evidence of their commitment to an inclusive financial future.
Share Your Thoughts
What are your thoughts on Tether Holdings' latest financial performance? We would love to hear your insights in the comments section below.
Frequently Asked Questions
Is gold buying a good retirement option?
While buying gold as an investment may seem unattractive at first glance it becomes worth the effort when you consider how much gold is consumed worldwide each year.
The most popular form of investing in gold is through physical bullion bars. There are many ways to invest your gold. You should research all options thoroughly before making a decision on which option you prefer.
If you don’t need a safe place for your wealth, then buying shares of mining companies or companies that extract it might be a better alternative. If you need cash flow to finance your investment, then gold stocks could be a good option.
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 can include stocks of precious metals refiners and gold miners.
Can I keep physical gold in an IRA?
Gold is money and not just paper currency. People have used gold as a currency for thousands of centuries to preserve their wealth and keep it safe from inflation. Gold is a part of a diversified portfolio that investors can use to protect their wealth from financial uncertainty.
Many Americans are now more inclined to invest in precious metals like gold and silver than stocks or bonds. It is possible to make money by investing in gold. However, it doesn't guarantee that you'll make a lot of money.
Another reason is the fact that gold historically has performed better than other assets in times of financial panic. The S&P 500 dropped 21 percent in the same time period, while gold prices rose by nearly 100 percent between August 2011-early 2013. Gold was one asset that outperformed stocks in turbulent market conditions.
Another advantage of investing in gold is that it's one of the few assets with virtually zero counterparty risk. Your stock portfolio can fall, but you will still own your shares. Gold can be worth more than its investment in a company that defaults on its obligations.
Finally, gold is liquid. This means you can easily sell your gold any time, unlike other investments. Because gold is so liquid compared to other investments, buying it in small amounts makes sense. This allows you to profit from short-term fluctuations on the gold market.
How is gold taxed within an IRA?
The fair market price of gold when it is sold determines the tax due on its sale. You don't have tax to pay when you buy or sell gold. It isn't considered income. If you sell it later, you'll have a taxable gain if the price goes up.
For loans, gold can be used to collateral. Lenders seek to get the best return when you borrow against your assets. This usually involves selling your gold. This is not always possible. They may hold on to it. They may decide to resell it. You lose potential profits in either case.
To avoid losing money, only lend against gold if you intend to use it for collateral. If you don't plan to use it as collateral, it is better to let it be.
How much do gold IRA fees cost?
Six dollars per month is the fee for an Individual Retirement Account (IRA). This fee includes account maintenance fees as well as any investment costs related to your selected investments.
If you want to diversify, you may be required to pay extra fees. The fees you pay will vary depending on the type of IRA that you choose. Some companies offer checking accounts for free, while others charge monthly fees for IRA account.
Most providers also charge an annual management fee. These fees range from 0% to 1%. The average rate is.25% per year. These rates are often waived if a broker like TD Ameritrade is used.
How can I withdraw from a Precious metal IRA?
You first need to decide if you want to withdraw money from an IRA account. After that, you need to decide if you want to withdraw funds from an IRA account. Next, make sure you have enough money in order for you pay any fees or penalties.
Consider opening a taxable brokerage instead of an IRA if it is possible to pay a penalty if your withdrawal is made before the deadline. If you decide to go with this option, you will need to take into account the taxes due on the amount you withdraw.
Next, figure out how much money will be taken out of your IRA. This calculation is affected by many factors, such as the age at which you withdraw the money, the amount of time the account has been owned, and whether your plans to continue contributing to your retirement fund.
Once you know what percentage of your total savings you'd like to convert into cash, you'll need to determine which type of IRA you want to use. Traditional IRAs permit you to withdraw your funds tax-free once you turn 59 1/2. Roth IRAs have income taxes upfront, but you can access the earnings later on without paying additional taxes.
After these calculations have been completed, you will need to open a brokerage bank account. Most brokers offer free signup bonuses and other promotions to entice people to open accounts. However, a debit card is better than a card. This will save you unnecessary fees.
When it's time to make withdrawals from your precious-metal IRA, you'll need a place to keep your coins safe. Some storage areas will accept bullion, while others require you to purchase individual coins. Before you choose one, weigh the pros and cons.
For example, storing bullion bars requires less space because you aren't dealing with individual coins. However, you'll need to count every coin individually. You can track their value by keeping individual coins.
Some people prefer to keep coins safe in a vault. Others prefer to store their coins in a vault. Whichever method you choose, make sure you store your bullion safely so you can enjoy its benefits for years to come.
Should You Get Gold?
Gold was considered a safety net for investors during times of economic turmoil in the past. 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.
Experts believe this could change soon. Experts believe that gold prices could skyrocket in the face of another global financial crisis.
They also note that gold is increasingly popular because of its perceived intrinsic value and potential return.
Here are some things to consider if you're considering investing in gold.
- The first thing to do is assess whether you actually need the money you're putting aside for retirement. It is possible to save for retirement while still investing your gold savings. However, when you retire at age 65, gold can provide additional protection.
- You should also be aware of what you are getting into before you buy gold. There are many types of gold IRA accounts. Each account offers different levels of security and flexibility.
- Last but not least, gold doesn't provide the same level security as a savings account. Your gold coins may be lost and you might never get them back.
Do your research before you buy gold. You should also ensure that you do everything you can to protect your gold.
What is the tax on gold in Roth IRAs?
Investment accounts are subject to tax based only on their current value and not the amount you originally paid. All gains, even if you have invested $1,000 in a mutual funds stock, are subject to tax.
If you place the money in a traditional IRA, 401(k), or other retirement plan, there is no tax when you take it out. Taxes are only charged on capital gains or dividends earned, which only apply to investments longer than one calendar year.
The rules governing these accounts vary by state. Maryland's rules require that withdrawals be taken within 60 days after you turn 59 1/2. Massachusetts allows you to delay withdrawals until April 1. And in New York, you have until age 70 1/2 . To avoid penalty fees, it is important to plan and take distributions in time to pay all your retirement savings.
- 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)
- You can only purchase gold bars at least 99.5% purity. (forbes.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)
- 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)
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
- Saddam Hussein's InvasionHelped Uncage a Bear In 90 – WSJ
- You want to keep gold in your IRA at home? It's not legal – WSJ
3 Ways To Invest in Gold For Retirement
It's important to understand how gold fits in with your retirement plan. There are several options to invest in precious metals if your employer has a 401k. You might also consider investing in gold outside your workplace. If you have an IRA (Individual Retirement Account), a custodial account could be opened at Fidelity Investments. If you don't have any precious metals yet, you might want to buy them from a reputable dealer.
These are the rules for gold investing:
- You can buy gold with your cash – No need to use credit cards or borrow money for investment financing. Instead, put cash into your accounts. This will help to keep your purchasing power high and protect you against inflation.
- Physical Gold Coins: You should own physical gold coins, not just a certificate. The reason for this is that physical gold coins are much more easily sold than certificates. You don't have to store physical gold coins.
- Diversify Your Portfolio. Never place all your eggs in the same basket. By investing in multiple assets, you can spread your wealth. This can reduce market volatility and help you be more flexible.
By: Terence Zimwara
Title: Tether Holdings Reports Record-Breaking Net Profit in Q4 2023
Sourced From: news.bitcoin.com/tethers-record-breaking-q4-profit-partly-attributed-to-gold-and-btc-price-appreciation/
Published Date: Thu, 01 Feb 2024 14:30:31 +0000