Gold has fascinated human beings since the dawn of time. Precious metal par excellence, embodies solidity, permanence, and commitment. The most incorruptible of noble metals because insensitive to oxidation, it symbolizes luxury, wealth, and eternity. It is used in arts and crafts as well as in industry and medicine, but above all, it is a great investment.
My favorite investments are real estate, life insurance, and the retirement savings plan. Today we present to you the ultimate, purest, most beautiful long-lasting investment: investment gold.
A Mystical Nature
According to the economist Jacques ATTALI, in an interview published in Le Monde Diplomatique in August 2015: “the 21st century only really began on September 11, 2001, it is about entering an unstable and multipolar world”. It is therefore not surprising to note the exponential increase in the price of investment gold since the beginning of the 2000s, with peaks in 2011 and 2020 because it is to it that we turn in times of crisis.
The price of the yellow metal should therefore not fall in the future due to the scarcity of this product. According to estimates, 145 kilotons of gold have already been extracted since the origins, of which 120 kilotons exist in the form of ingots and jewelry.
If the nature of gold remains partly mysterious, gold has an extra-terrestrial origin which reinforces its myth a little more: it would be the product of the explosion of stars having struck the Earth. Exploitable reserves are therefore not renewable. The main producing countries are South Africa, the United States, Australia, Russia, Canada, Peru, Ghana, and China.
Investing In Gold: An Investment Must-Have
Investment gold is presented, rightly, as intended to protect part of the value of one’s heritage. It is particularly useful when preparing for retirement. Many economists and wealth management specialists recommend having 10-20% gold in your investment portfolio.
Gold is also correlated with inflation: when inflation rises, gold rises mechanically. Traditional assets (stocks, real estate, etc.) carry a significant amount of risk, rapid loss of value, inflation, speculative bubble, etc. A true safe haven, gold is therefore a safe complement to stocks and bonds, whose prices can very strongly vary within a few minutes.
The purchase of gold, physical or paper, is not taxed (not even VAT). On sale, physical gold is taxed, depending on the amount of the transaction, by a fixed tax on precious metals or capital gains. A reduction is applied according to the duration of detention. About paper gold, its taxation under capital gain follows the same principles as the sale of shares.
How To Buy Gold?
Gold can be obtained in two ways. The first is the purchase of physical gold (bars, ingots, wafers, coins, etc.) To be considered investments, these elements must have a purity of at least 995 thousandths and a weight greater than one gram. The investor thus has the gold in a tangible, palpable way and he can dispose of it as soon as he needs it.
Gold is relatively easy to resell. As we have seen, it protects against inflation thanks to its countercyclical movement. This investment is considered and used as a form of insurance: in the event of a need for cash, the release of funds will be rapid.
The second option is the purchase of paper gold which can take the form of exchange-traded funds (ETFs), such as the iShares Gold Bullion ETF from American BlackRock (one of the largest asset managers in the world). , or the actions of gold mines or SICAVs specialized in gold. Note: in the case of paper gold, the investor does not physically hold the gold. These products reflect the evolution of the price of gold, so there is no capital guarantee. These products not always be correlated with a stock of physical gold, it, therefore, turns out that the investment here loses its character as a safe haven.
Investment in paper gold should not be taken lightly, because, unlike physical gold which remains a real long-term savings product, paper gold is a listed product reserved for the public. experimented.
…
The post What Is Investment Gold IRA? appeared first on Best Gold IRA Companies.
[content] => Array ( [encoded] =>Gold has fascinated human beings since the dawn of time. Precious metal par excellence, embodies solidity, permanence, and commitment. The most incorruptible of noble metals because insensitive to oxidation, it symbolizes luxury, wealth, and eternity. It is used in arts and crafts as well as in industry and medicine, but above all, it is a great investment.
My favorite investments are real estate, life insurance, and the retirement savings plan. Today we present to you the ultimate, purest, most beautiful long-lasting investment: investment gold.
A Mystical Nature
According to the economist Jacques ATTALI, in an interview published in Le Monde Diplomatique in August 2015: “the 21st century only really began on September 11, 2001, it is about entering an unstable and multipolar world”. It is therefore not surprising to note the exponential increase in the price of investment gold since the beginning of the 2000s, with peaks in 2011 and 2020 because it is to it that we turn in times of crisis.
The price of the yellow metal should therefore not fall in the future due to the scarcity of this product. According to estimates, 145 kilotons of gold have already been extracted since the origins, of which 120 kilotons exist in the form of ingots and jewelry.
If the nature of gold remains partly mysterious, gold has an extra-terrestrial origin which reinforces its myth a little more: it would be the product of the explosion of stars having struck the Earth. Exploitable reserves are therefore not renewable. The main producing countries are South Africa, the United States, Australia, Russia, Canada, Peru, Ghana, and China.
Investing In Gold: An Investment Must-Have
Investment gold is presented, rightly, as intended to protect part of the value of one’s heritage. It is particularly useful when preparing for retirement. Many economists and wealth management specialists recommend having 10-20% gold in your investment portfolio.
Gold is also correlated with inflation: when inflation rises, gold rises mechanically. Traditional assets (stocks, real estate, etc.) carry a significant amount of risk, rapid loss of value, inflation, speculative bubble, etc. A true safe haven, gold is therefore a safe complement to stocks and bonds, whose prices can very strongly vary within a few minutes.
The purchase of gold, physical or paper, is not taxed (not even VAT). On sale, physical gold is taxed, depending on the amount of the transaction, by a fixed tax on precious metals or capital gains. A reduction is applied according to the duration of detention. About paper gold, its taxation under capital gain follows the same principles as the sale of shares.
How To Buy Gold?
Gold can be obtained in two ways. The first is the purchase of physical gold (bars, ingots, wafers, coins, etc.) To be considered investments, these elements must have a purity of at least 995 thousandths and a weight greater than one gram. The investor thus has the gold in a tangible, palpable way and he can dispose of it as soon as he needs it.
Gold is relatively easy to resell. As we have seen, it protects against inflation thanks to its countercyclical movement. This investment is considered and used as a form of insurance: in the event of a need for cash, the release of funds will be rapid.
The second option is the purchase of paper gold which can take the form of exchange-traded funds (ETFs), such as the iShares Gold Bullion ETF from American BlackRock (one of the largest asset managers in the world). , or the actions of gold mines or SICAVs specialized in gold. Note: in the case of paper gold, the investor does not physically hold the gold. These products reflect the evolution of the price of gold, so there is no capital guarantee. These products not always be correlated with a stock of physical gold, it, therefore, turns out that the investment here loses its character as a safe haven.
Investment in paper gold should not be taken lightly, because, unlike physical gold which remains a real long-term savings product, paper gold is a listed product reserved for the public. experimented.
The post What Is Investment Gold IRA? appeared first on Best Gold IRA Companies.
) [summary] =>Gold has fascinated human beings since the dawn of time. Precious metal par excellence, embodies solidity, permanence, and commitment. The most incorruptible of noble metals because insensitive to oxidation, it symbolizes luxury, wealth, and eternity. It is used in arts and crafts as well as in industry and medicine, but above all, it is a great investment.
My favorite investments are real estate, life insurance, and the retirement savings plan. Today we present to you the ultimate, purest, most beautiful long-lasting investment: investment gold.
A Mystical Nature
According to the economist Jacques ATTALI, in an interview published in Le Monde Diplomatique in August 2015: “the 21st century only really began on September 11, 2001, it is about entering an unstable and multipolar world”. It is therefore not surprising to note the exponential increase in the price of investment gold since the beginning of the 2000s, with peaks in 2011 and 2020 because it is to it that we turn in times of crisis.
The price of the yellow metal should therefore not fall in the future due to the scarcity of this product. According to estimates, 145 kilotons of gold have already been extracted since the origins, of which 120 kilotons exist in the form of ingots and jewelry.
If the nature of gold remains partly mysterious, gold has an extra-terrestrial origin which reinforces its myth a little more: it would be the product of the explosion of stars having struck the Earth. Exploitable reserves are therefore not renewable. The main producing countries are South Africa, the United States, Australia, Russia, Canada, Peru, Ghana, and China.
Investing In Gold: An Investment Must-Have
Investment gold is presented, rightly, as intended to protect part of the value of one’s heritage. It is particularly useful when preparing for retirement. Many economists and wealth management specialists recommend having 10-20% gold in your investment portfolio.
Gold is also correlated with inflation: when inflation rises, gold rises mechanically. Traditional assets (stocks, real estate, etc.) carry a significant amount of risk, rapid loss of value, inflation, speculative bubble, etc. A true safe haven, gold is therefore a safe complement to stocks and bonds, whose prices can very strongly vary within a few minutes.
The purchase of gold, physical or paper, is not taxed (not even VAT). On sale, physical gold is taxed, depending on the amount of the transaction, by a fixed tax on precious metals or capital gains. A reduction is applied according to the duration of detention. About paper gold, its taxation under capital gain follows the same principles as the sale of shares.
How To Buy Gold?
Gold can be obtained in two ways. The first is the purchase of physical gold (bars, ingots, wafers, coins, etc.) To be considered investments, these elements must have a purity of at least 995 thousandths and a weight greater than one gram. The investor thus has the gold in a tangible, palpable way and he can dispose of it as soon as he needs it.
Gold is relatively easy to resell. As we have seen, it protects against inflation thanks to its countercyclical movement. This investment is considered and used as a form of insurance: in the event of a need for cash, the release of funds will be rapid.
The second option is the purchase of paper gold which can take the form of exchange-traded funds (ETFs), such as the iShares Gold Bullion ETF from American BlackRock (one of the largest asset managers in the world). , or the actions of gold mines or SICAVs specialized in gold. Note: in the case of paper gold, the investor does not physically hold the gold. These products reflect the evolution of the price of gold, so there is no capital guarantee. These products not always be correlated with a stock of physical gold, it, therefore, turns out that the investment here loses its character as a safe haven.
Investment in paper gold should not be taken lightly, because, unlike physical gold which remains a real long-term savings product, paper gold is a listed product reserved for the public. experimented.
…
The post What Is Investment Gold IRA? appeared first on Best Gold IRA Companies.
[atom_content] =>Gold has fascinated human beings since the dawn of time. Precious metal par excellence, embodies solidity, permanence, and commitment. The most incorruptible of noble metals because insensitive to oxidation, it symbolizes luxury, wealth, and eternity. It is used in arts and crafts as well as in industry and medicine, but above all, it is a great investment.
My favorite investments are real estate, life insurance, and the retirement savings plan. Today we present to you the ultimate, purest, most beautiful long-lasting investment: investment gold.
A Mystical Nature
According to the economist Jacques ATTALI, in an interview published in Le Monde Diplomatique in August 2015: “the 21st century only really began on September 11, 2001, it is about entering an unstable and multipolar world”. It is therefore not surprising to note the exponential increase in the price of investment gold since the beginning of the 2000s, with peaks in 2011 and 2020 because it is to it that we turn in times of crisis.
The price of the yellow metal should therefore not fall in the future due to the scarcity of this product. According to estimates, 145 kilotons of gold have already been extracted since the origins, of which 120 kilotons exist in the form of ingots and jewelry.
If the nature of gold remains partly mysterious, gold has an extra-terrestrial origin which reinforces its myth a little more: it would be the product of the explosion of stars having struck the Earth. Exploitable reserves are therefore not renewable. The main producing countries are South Africa, the United States, Australia, Russia, Canada, Peru, Ghana, and China.
Investing In Gold: An Investment Must-Have
Investment gold is presented, rightly, as intended to protect part of the value of one’s heritage. It is particularly useful when preparing for retirement. Many economists and wealth management specialists recommend having 10-20% gold in your investment portfolio.
Gold is also correlated with inflation: when inflation rises, gold rises mechanically. Traditional assets (stocks, real estate, etc.) carry a significant amount of risk, rapid loss of value, inflation, speculative bubble, etc. A true safe haven, gold is therefore a safe complement to stocks and bonds, whose prices can very strongly vary within a few minutes.
The purchase of gold, physical or paper, is not taxed (not even VAT). On sale, physical gold is taxed, depending on the amount of the transaction, by a fixed tax on precious metals or capital gains. A reduction is applied according to the duration of detention. About paper gold, its taxation under capital gain follows the same principles as the sale of shares.
How To Buy Gold?
Gold can be obtained in two ways. The first is the purchase of physical gold (bars, ingots, wafers, coins, etc.) To be considered investments, these elements must have a purity of at least 995 thousandths and a weight greater than one gram. The investor thus has the gold in a tangible, palpable way and he can dispose of it as soon as he needs it.
Gold is relatively easy to resell. As we have seen, it protects against inflation thanks to its countercyclical movement. This investment is considered and used as a form of insurance: in the event of a need for cash, the release of funds will be rapid.
The second option is the purchase of paper gold which can take the form of exchange-traded funds (ETFs), such as the iShares Gold Bullion ETF from American BlackRock (one of the largest asset managers in the world). , or the actions of gold mines or SICAVs specialized in gold. Note: in the case of paper gold, the investor does not physically hold the gold. These products reflect the evolution of the price of gold, so there is no capital guarantee. These products not always be correlated with a stock of physical gold, it, therefore, turns out that the investment here loses its character as a safe haven.
Investment in paper gold should not be taken lightly, because, unlike physical gold which remains a real long-term savings product, paper gold is a listed product reserved for the public. experimented.
The post What Is Investment Gold IRA? appeared first on Best Gold IRA Companies.
) [1] => Array ( [title] => Gold Price: Has The Rebound Taken Place? [link] => https://companiesgoldira.best/gold-price-has-the-rebound-taken-place/ [dc] => Array ( [creator] => Armando Lewis ) [pubdate] => Wed, 16 Nov 2022 12:12:23 +0000 [category] => Gold Price [guid] => https://companiesgoldira.best/?p=57 [description] =>In 2020, the price of gold had broken records: the health crisis linked to COVID-19 paralyzed international trade, causing stock prices to collapse and raising gold as a safe haven. At the height of the pandemic, gold reached an all-time high at €1,743 per ounce (August 2020). However, the current situation is more bitter: in a context of economic recovery inflated by massive support from central banks, gold is tarnishing under the pressure of the dollar.
After the summit, the fall
At the end of November 2020, the price of the precious metal had collapsed, impacted by the announcement of the discovery of a vaccine and the gradual recovery of the major world economies, again offering investors a taste for risk. Because gold is above all a safe haven: its operation in opposition to the stock markets allows it to flourish in times of financial crisis, when stock returns are at their lowest.
However, gold’s fall at the end of 2020 was punctuated by a few rebounds, especially in mid-January. However, each upward trend was followed by a new downward correction, particularly in March 2021 when the price fell due to the rise in interest rates in the United States. Investors, therefore, turned away from gold, despite the inflationary suspicions generated by the massive injections of liquidity into the American economy. The devaluation of the dollar is generally profitable for the price of gold, but the scenario of hyperinflation in the USA, envisaged by analysts at the start of the year, seems to be better controlled than expected.
Gold in Crisis?
Currently, gold prices are still trading lower, this time due to the US jobs report released last week, indicating a better-than-expected economic recovery. Despite rapid price increases at the end of July, due to a temporary depreciation of the greenback, gold held up without performing. The doubts of certain specialists as to the monetary policy of the USA were not enough to revive the price of the precious metal: gold is paying the price for a potential rise in interest rates, anticipated by investors. The strength of the dollar generates a weakness of the yellow metal, which is closely linked to the fluctuations of the American currency on the international market.
A long-Term Investment
While the pandemic has had a heavy impact on trade in 2020, the global economy seems on track to recover to its pre-covid cruising speed. In Asia, the world’s second-largest gold trading hub, experts report ” very quiet trading across the entire precious complex .” In this context of recovery, critics of gold prefer risky investments that are more profitable in the short term.
The fact remains that since August 2001, gold has gone from $265 an ounce to more than $1,735 in August 2021… That is a 550% increase in the space of 20 years! Gold should therefore not be seen as an investment similar to stocks and bonds, but as a long-term investment, capable of withstanding large-scale economic crises such as the one we experienced in 2020. Because for an investment carried out in 2001, we will ultimately retain only the capital gain realized 20 years later, omitting the shifts and dizziness of the gold curves.…
The post Gold Price: Has The Rebound Taken Place? appeared first on Best Gold IRA Companies.
[content] => Array ( [encoded] =>In 2020, the price of gold had broken records: the health crisis linked to COVID-19 paralyzed international trade, causing stock prices to collapse and raising gold as a safe haven. At the height of the pandemic, gold reached an all-time high at €1,743 per ounce (August 2020). However, the current situation is more bitter: in a context of economic recovery inflated by massive support from central banks, gold is tarnishing under the pressure of the dollar.
After the summit, the fall
At the end of November 2020, the price of the precious metal had collapsed, impacted by the announcement of the discovery of a vaccine and the gradual recovery of the major world economies, again offering investors a taste for risk. Because gold is above all a safe haven: its operation in opposition to the stock markets allows it to flourish in times of financial crisis, when stock returns are at their lowest.
However, gold’s fall at the end of 2020 was punctuated by a few rebounds, especially in mid-January. However, each upward trend was followed by a new downward correction, particularly in March 2021 when the price fell due to the rise in interest rates in the United States. Investors, therefore, turned away from gold, despite the inflationary suspicions generated by the massive injections of liquidity into the American economy. The devaluation of the dollar is generally profitable for the price of gold, but the scenario of hyperinflation in the USA, envisaged by analysts at the start of the year, seems to be better controlled than expected.
Gold in Crisis?
Currently, gold prices are still trading lower, this time due to the US jobs report released last week, indicating a better-than-expected economic recovery. Despite rapid price increases at the end of July, due to a temporary depreciation of the greenback, gold held up without performing. The doubts of certain specialists as to the monetary policy of the USA were not enough to revive the price of the precious metal: gold is paying the price for a potential rise in interest rates, anticipated by investors. The strength of the dollar generates a weakness of the yellow metal, which is closely linked to the fluctuations of the American currency on the international market.
A long-Term Investment
While the pandemic has had a heavy impact on trade in 2020, the global economy seems on track to recover to its pre-covid cruising speed. In Asia, the world’s second-largest gold trading hub, experts report ” very quiet trading across the entire precious complex .” In this context of recovery, critics of gold prefer risky investments that are more profitable in the short term.
The fact remains that since August 2001, gold has gone from $265 an ounce to more than $1,735 in August 2021… That is a 550% increase in the space of 20 years! Gold should therefore not be seen as an investment similar to stocks and bonds, but as a long-term investment, capable of withstanding large-scale economic crises such as the one we experienced in 2020. Because for an investment carried out in 2001, we will ultimately retain only the capital gain realized 20 years later, omitting the shifts and dizziness of the gold curves.…
The post Gold Price: Has The Rebound Taken Place? appeared first on Best Gold IRA Companies.
) [summary] =>In 2020, the price of gold had broken records: the health crisis linked to COVID-19 paralyzed international trade, causing stock prices to collapse and raising gold as a safe haven. At the height of the pandemic, gold reached an all-time high at €1,743 per ounce (August 2020). However, the current situation is more bitter: in a context of economic recovery inflated by massive support from central banks, gold is tarnishing under the pressure of the dollar.
After the summit, the fall
At the end of November 2020, the price of the precious metal had collapsed, impacted by the announcement of the discovery of a vaccine and the gradual recovery of the major world economies, again offering investors a taste for risk. Because gold is above all a safe haven: its operation in opposition to the stock markets allows it to flourish in times of financial crisis, when stock returns are at their lowest.
However, gold’s fall at the end of 2020 was punctuated by a few rebounds, especially in mid-January. However, each upward trend was followed by a new downward correction, particularly in March 2021 when the price fell due to the rise in interest rates in the United States. Investors, therefore, turned away from gold, despite the inflationary suspicions generated by the massive injections of liquidity into the American economy. The devaluation of the dollar is generally profitable for the price of gold, but the scenario of hyperinflation in the USA, envisaged by analysts at the start of the year, seems to be better controlled than expected.
Gold in Crisis?
Currently, gold prices are still trading lower, this time due to the US jobs report released last week, indicating a better-than-expected economic recovery. Despite rapid price increases at the end of July, due to a temporary depreciation of the greenback, gold held up without performing. The doubts of certain specialists as to the monetary policy of the USA were not enough to revive the price of the precious metal: gold is paying the price for a potential rise in interest rates, anticipated by investors. The strength of the dollar generates a weakness of the yellow metal, which is closely linked to the fluctuations of the American currency on the international market.
A long-Term Investment
While the pandemic has had a heavy impact on trade in 2020, the global economy seems on track to recover to its pre-covid cruising speed. In Asia, the world’s second-largest gold trading hub, experts report ” very quiet trading across the entire precious complex .” In this context of recovery, critics of gold prefer risky investments that are more profitable in the short term.
The fact remains that since August 2001, gold has gone from $265 an ounce to more than $1,735 in August 2021… That is a 550% increase in the space of 20 years! Gold should therefore not be seen as an investment similar to stocks and bonds, but as a long-term investment, capable of withstanding large-scale economic crises such as the one we experienced in 2020. Because for an investment carried out in 2001, we will ultimately retain only the capital gain realized 20 years later, omitting the shifts and dizziness of the gold curves.…
The post Gold Price: Has The Rebound Taken Place? appeared first on Best Gold IRA Companies.
[atom_content] =>In 2020, the price of gold had broken records: the health crisis linked to COVID-19 paralyzed international trade, causing stock prices to collapse and raising gold as a safe haven. At the height of the pandemic, gold reached an all-time high at €1,743 per ounce (August 2020). However, the current situation is more bitter: in a context of economic recovery inflated by massive support from central banks, gold is tarnishing under the pressure of the dollar.
After the summit, the fall
At the end of November 2020, the price of the precious metal had collapsed, impacted by the announcement of the discovery of a vaccine and the gradual recovery of the major world economies, again offering investors a taste for risk. Because gold is above all a safe haven: its operation in opposition to the stock markets allows it to flourish in times of financial crisis, when stock returns are at their lowest.
However, gold’s fall at the end of 2020 was punctuated by a few rebounds, especially in mid-January. However, each upward trend was followed by a new downward correction, particularly in March 2021 when the price fell due to the rise in interest rates in the United States. Investors, therefore, turned away from gold, despite the inflationary suspicions generated by the massive injections of liquidity into the American economy. The devaluation of the dollar is generally profitable for the price of gold, but the scenario of hyperinflation in the USA, envisaged by analysts at the start of the year, seems to be better controlled than expected.
Gold in Crisis?
Currently, gold prices are still trading lower, this time due to the US jobs report released last week, indicating a better-than-expected economic recovery. Despite rapid price increases at the end of July, due to a temporary depreciation of the greenback, gold held up without performing. The doubts of certain specialists as to the monetary policy of the USA were not enough to revive the price of the precious metal: gold is paying the price for a potential rise in interest rates, anticipated by investors. The strength of the dollar generates a weakness of the yellow metal, which is closely linked to the fluctuations of the American currency on the international market.
A long-Term Investment
While the pandemic has had a heavy impact on trade in 2020, the global economy seems on track to recover to its pre-covid cruising speed. In Asia, the world’s second-largest gold trading hub, experts report ” very quiet trading across the entire precious complex .” In this context of recovery, critics of gold prefer risky investments that are more profitable in the short term.
The fact remains that since August 2001, gold has gone from $265 an ounce to more than $1,735 in August 2021… That is a 550% increase in the space of 20 years! Gold should therefore not be seen as an investment similar to stocks and bonds, but as a long-term investment, capable of withstanding large-scale economic crises such as the one we experienced in 2020. Because for an investment carried out in 2001, we will ultimately retain only the capital gain realized 20 years later, omitting the shifts and dizziness of the gold curves.…
The post Gold Price: Has The Rebound Taken Place? appeared first on Best Gold IRA Companies.
) [2] => Array ( [title] => Think You Know What The Risks Of Investing In Gold Are? Test Your Knowledge With Our Quiz. [link] => https://companiesgoldira.best/think-you-know-what-the-risks-of-investing-in-gold-are-test-your-knowledge-with-our-quiz/ [dc] => Array ( [creator] => Armando Lewis ) [pubdate] => Wed, 16 Nov 2022 12:10:08 +0000 [category] => Investing In Gold [guid] => https://companiesgoldira.best/?p=53 [description] =>Gold is a precious metal that, as a savings solution, enjoys impressive popularity. Indeed, according to a recent survey, nearly three-quarters of people consider this resource as a real safe haven investment. Despite everything, many remain wary of gold and consider investing in the yellow metal to be risky.
The purchase of gold is reserved for the richest. It’s wrong! Contrary to popular belief, gold is accessible to (almost) all stock exchanges.
Gold is hard to store
It’s wrong. Here is a recurring cliché: gold would be difficult to store due to its rarity, which would make it a popular resource for burglars. The reality is much more nuanced.
Gold is likely to be stolen, of course, but no more so than a car, a watch, a musical instrument, or a luxury item of clothing. As with all those objects that you already keep in your home (and which are more visible than a few grams of gold), there are devices to protect your belongings and prevent burglaries. In addition, there are now efficient and secure private storage solutions.
Gold holders are subject to heavy taxation
True, but only partially.
It is an undeniable fact: capital gains on the resale of gold are taxable.
However, the taxation of gold can be interesting if one is interested in its acquisition as well as its possession. When you buy gold, this operation is exempt from VAT and tax-exempt. In addition, its possession is not subject to the Real Estate Wealth Tax.
The resale of gold is heavily taxed
This received idea is not always true!
Investing in gold can be profitable when the time comes for resale. With this operation being taxed, one can wonder about the relevance of such an investment.
There is indeed a tax on the appreciation of precious metals. But owners are completely exempt if their gold was acquired 22 years ago or more, and they have kept proof of the date of purchase. Without official proof of the date of acquisition of the gold, the fixed tax on precious metals applies.
In addition, tax rates (and the amount of any tax relief) vary, depending on whether the gold is in the form of legal tender gold coins (such as the US Eagle) or demonetized bullion and coins ( of the Napoleon coin type ).
Gold pays nothing
This is false. Certainly, the possession of a reserve of gold does not allow anyone to obtain a regular income supplement. In this, investing in this metal differs from certain attractive stock market operations, as they are more profitable in the short term. His interest is elsewhere.
However, its status as a safe haven makes it a very relevant element of savings according to experts: the price of gold evolves in a counter-cyclical manner, and investing in the gold metal makes it possible to protect against inflation as a part of its financial capital.
With this, reselling gold can be extremely profitable: depending on the price of gold and the economic context, you can make a significant capital gain.…
The post Think You Know What The Risks Of Investing In Gold Are? Test Your Knowledge With Our Quiz. appeared first on Best Gold IRA Companies.
[content] => Array ( [encoded] =>Gold is a precious metal that, as a savings solution, enjoys impressive popularity. Indeed, according to a recent survey, nearly three-quarters of people consider this resource as a real safe haven investment. Despite everything, many remain wary of gold and consider investing in the yellow metal to be risky.
The purchase of gold is reserved for the richest. It’s wrong! Contrary to popular belief, gold is accessible to (almost) all stock exchanges.
Gold is hard to store
It’s wrong. Here is a recurring cliché: gold would be difficult to store due to its rarity, which would make it a popular resource for burglars. The reality is much more nuanced.
Gold is likely to be stolen, of course, but no more so than a car, a watch, a musical instrument, or a luxury item of clothing. As with all those objects that you already keep in your home (and which are more visible than a few grams of gold), there are devices to protect your belongings and prevent burglaries. In addition, there are now efficient and secure private storage solutions.
Gold holders are subject to heavy taxation
True, but only partially.
It is an undeniable fact: capital gains on the resale of gold are taxable.
However, the taxation of gold can be interesting if one is interested in its acquisition as well as its possession. When you buy gold, this operation is exempt from VAT and tax-exempt. In addition, its possession is not subject to the Real Estate Wealth Tax.
The resale of gold is heavily taxed
This received idea is not always true!
Investing in gold can be profitable when the time comes for resale. With this operation being taxed, one can wonder about the relevance of such an investment.
There is indeed a tax on the appreciation of precious metals. But owners are completely exempt if their gold was acquired 22 years ago or more, and they have kept proof of the date of purchase. Without official proof of the date of acquisition of the gold, the fixed tax on precious metals applies.
In addition, tax rates (and the amount of any tax relief) vary, depending on whether the gold is in the form of legal tender gold coins (such as the US Eagle) or demonetized bullion and coins ( of the Napoleon coin type ).
Gold pays nothing
This is false. Certainly, the possession of a reserve of gold does not allow anyone to obtain a regular income supplement. In this, investing in this metal differs from certain attractive stock market operations, as they are more profitable in the short term. His interest is elsewhere.
However, its status as a safe haven makes it a very relevant element of savings according to experts: the price of gold evolves in a counter-cyclical manner, and investing in the gold metal makes it possible to protect against inflation as a part of its financial capital.
With this, reselling gold can be extremely profitable: depending on the price of gold and the economic context, you can make a significant capital gain.…
The post Think You Know What The Risks Of Investing In Gold Are? Test Your Knowledge With Our Quiz. appeared first on Best Gold IRA Companies.
) [summary] =>Gold is a precious metal that, as a savings solution, enjoys impressive popularity. Indeed, according to a recent survey, nearly three-quarters of people consider this resource as a real safe haven investment. Despite everything, many remain wary of gold and consider investing in the yellow metal to be risky.
The purchase of gold is reserved for the richest. It’s wrong! Contrary to popular belief, gold is accessible to (almost) all stock exchanges.
Gold is hard to store
It’s wrong. Here is a recurring cliché: gold would be difficult to store due to its rarity, which would make it a popular resource for burglars. The reality is much more nuanced.
Gold is likely to be stolen, of course, but no more so than a car, a watch, a musical instrument, or a luxury item of clothing. As with all those objects that you already keep in your home (and which are more visible than a few grams of gold), there are devices to protect your belongings and prevent burglaries. In addition, there are now efficient and secure private storage solutions.
Gold holders are subject to heavy taxation
True, but only partially.
It is an undeniable fact: capital gains on the resale of gold are taxable.
However, the taxation of gold can be interesting if one is interested in its acquisition as well as its possession. When you buy gold, this operation is exempt from VAT and tax-exempt. In addition, its possession is not subject to the Real Estate Wealth Tax.
The resale of gold is heavily taxed
This received idea is not always true!
Investing in gold can be profitable when the time comes for resale. With this operation being taxed, one can wonder about the relevance of such an investment.
There is indeed a tax on the appreciation of precious metals. But owners are completely exempt if their gold was acquired 22 years ago or more, and they have kept proof of the date of purchase. Without official proof of the date of acquisition of the gold, the fixed tax on precious metals applies.
In addition, tax rates (and the amount of any tax relief) vary, depending on whether the gold is in the form of legal tender gold coins (such as the US Eagle) or demonetized bullion and coins ( of the Napoleon coin type ).
Gold pays nothing
This is false. Certainly, the possession of a reserve of gold does not allow anyone to obtain a regular income supplement. In this, investing in this metal differs from certain attractive stock market operations, as they are more profitable in the short term. His interest is elsewhere.
However, its status as a safe haven makes it a very relevant element of savings according to experts: the price of gold evolves in a counter-cyclical manner, and investing in the gold metal makes it possible to protect against inflation as a part of its financial capital.
With this, reselling gold can be extremely profitable: depending on the price of gold and the economic context, you can make a significant capital gain.…
The post Think You Know What The Risks Of Investing In Gold Are? Test Your Knowledge With Our Quiz. appeared first on Best Gold IRA Companies.
[atom_content] =>Gold is a precious metal that, as a savings solution, enjoys impressive popularity. Indeed, according to a recent survey, nearly three-quarters of people consider this resource as a real safe haven investment. Despite everything, many remain wary of gold and consider investing in the yellow metal to be risky.
The purchase of gold is reserved for the richest. It’s wrong! Contrary to popular belief, gold is accessible to (almost) all stock exchanges.
Gold is hard to store
It’s wrong. Here is a recurring cliché: gold would be difficult to store due to its rarity, which would make it a popular resource for burglars. The reality is much more nuanced.
Gold is likely to be stolen, of course, but no more so than a car, a watch, a musical instrument, or a luxury item of clothing. As with all those objects that you already keep in your home (and which are more visible than a few grams of gold), there are devices to protect your belongings and prevent burglaries. In addition, there are now efficient and secure private storage solutions.
Gold holders are subject to heavy taxation
True, but only partially.
It is an undeniable fact: capital gains on the resale of gold are taxable.
However, the taxation of gold can be interesting if one is interested in its acquisition as well as its possession. When you buy gold, this operation is exempt from VAT and tax-exempt. In addition, its possession is not subject to the Real Estate Wealth Tax.
The resale of gold is heavily taxed
This received idea is not always true!
Investing in gold can be profitable when the time comes for resale. With this operation being taxed, one can wonder about the relevance of such an investment.
There is indeed a tax on the appreciation of precious metals. But owners are completely exempt if their gold was acquired 22 years ago or more, and they have kept proof of the date of purchase. Without official proof of the date of acquisition of the gold, the fixed tax on precious metals applies.
In addition, tax rates (and the amount of any tax relief) vary, depending on whether the gold is in the form of legal tender gold coins (such as the US Eagle) or demonetized bullion and coins ( of the Napoleon coin type ).
Gold pays nothing
This is false. Certainly, the possession of a reserve of gold does not allow anyone to obtain a regular income supplement. In this, investing in this metal differs from certain attractive stock market operations, as they are more profitable in the short term. His interest is elsewhere.
However, its status as a safe haven makes it a very relevant element of savings according to experts: the price of gold evolves in a counter-cyclical manner, and investing in the gold metal makes it possible to protect against inflation as a part of its financial capital.
With this, reselling gold can be extremely profitable: depending on the price of gold and the economic context, you can make a significant capital gain.…
The post Think You Know What The Risks Of Investing In Gold Are? Test Your Knowledge With Our Quiz. appeared first on Best Gold IRA Companies.
) [3] => Array ( [title] => When To Buy Gold IRA? [link] => https://companiesgoldira.best/when-to-buy-gold-ira/ [dc] => Array ( [creator] => Armando Lewis ) [pubdate] => Wed, 16 Nov 2022 12:07:27 +0000 [category] => Gold IRA [guid] => https://companiesgoldira.best/?p=49 [description] =>Many people want to buy gold, but many also wait for the right moment to take the plunge. Is there a really good time to buy gold? Why does the price of gold fluctuate so much?
Why does the price of gold fluctuate?
You are aware that the price of gold depends on the price of gold set in London by the LBMA ( London Bullion Market Association ). The latter changes several times a day and fluctuates enormously for several reasons. The fluctuation in the price of gold means that its price often goes down and up.
Indeed, the yellow metal being quite coveted, these fluctuations are mainly governed by the law of supply and demand. But this is not the only reason why its price changes because the price of gold is also influenced by global geopolitics, i.e. world events, can impact stock markets and the world economy. . Therefore, it is important to know that the price of gold has a countercyclical aspect: that is to say that it works in opposition to the market on the world stock exchanges. This means that when the markets are in crisis, the price of gold goes up, and vice versa. Take as an example the Covid-19 health crisis, which is a current geopolitical event. The latter completely impacted the global economy in the wrong direction and as a result, the price of gold exploded in August 2020 and played its role as a safe haven more than ever.
When is the best time to buy gold?
As said previously, gold is a safe haven: this precious metal, therefore, has more interest as a savings value and is ultimately not very suitable for speculative practices. It is for this reason that there are no good times per se to buy gold.
Certainly, its price fluctuates, and it is normal to always want to buy it at its lowest price. But given the geopolitical context and other reasons that influence the price of gold, we cannot know in advance whether its price will fall or rise in the coming days. But one thing is certain, saving in the yellow metal allows you to protect part of your savings from inflation thanks to its safe haven. In addition, we notice over the thirty years that its price is higher than 30 or 20 years ago, and proves that gold is an investment that can pay off in the long term.
It is in this logic that professional investors advise investing in gold often and in small quantities. In this way, you limit the impact of the fluctuation in the price of gold, since the downtrends in gold will offset the uptrends.
Investing in gold allows you to build savings little by little, and is the best way to diversify your investments. The security of the yellow metal could compensate for the possible loss of other more volatile investments. And thus, offers the possibility of securing one’s savings in the face of inflation and global economic uncertainties.…
The post When To Buy Gold IRA? appeared first on Best Gold IRA Companies.
[content] => Array ( [encoded] =>Many people want to buy gold, but many also wait for the right moment to take the plunge. Is there a really good time to buy gold? Why does the price of gold fluctuate so much?
Why does the price of gold fluctuate?
You are aware that the price of gold depends on the price of gold set in London by the LBMA ( London Bullion Market Association ). The latter changes several times a day and fluctuates enormously for several reasons. The fluctuation in the price of gold means that its price often goes down and up.
Indeed, the yellow metal being quite coveted, these fluctuations are mainly governed by the law of supply and demand. But this is not the only reason why its price changes because the price of gold is also influenced by global geopolitics, i.e. world events, can impact stock markets and the world economy. . Therefore, it is important to know that the price of gold has a countercyclical aspect: that is to say that it works in opposition to the market on the world stock exchanges. This means that when the markets are in crisis, the price of gold goes up, and vice versa. Take as an example the Covid-19 health crisis, which is a current geopolitical event. The latter completely impacted the global economy in the wrong direction and as a result, the price of gold exploded in August 2020 and played its role as a safe haven more than ever.
When is the best time to buy gold?
As said previously, gold is a safe haven: this precious metal, therefore, has more interest as a savings value and is ultimately not very suitable for speculative practices. It is for this reason that there are no good times per se to buy gold.
Certainly, its price fluctuates, and it is normal to always want to buy it at its lowest price. But given the geopolitical context and other reasons that influence the price of gold, we cannot know in advance whether its price will fall or rise in the coming days. But one thing is certain, saving in the yellow metal allows you to protect part of your savings from inflation thanks to its safe haven. In addition, we notice over the thirty years that its price is higher than 30 or 20 years ago, and proves that gold is an investment that can pay off in the long term.
It is in this logic that professional investors advise investing in gold often and in small quantities. In this way, you limit the impact of the fluctuation in the price of gold, since the downtrends in gold will offset the uptrends.
Investing in gold allows you to build savings little by little, and is the best way to diversify your investments. The security of the yellow metal could compensate for the possible loss of other more volatile investments. And thus, offers the possibility of securing one’s savings in the face of inflation and global economic uncertainties.…
The post When To Buy Gold IRA? appeared first on Best Gold IRA Companies.
) [summary] =>Many people want to buy gold, but many also wait for the right moment to take the plunge. Is there a really good time to buy gold? Why does the price of gold fluctuate so much?
Why does the price of gold fluctuate?
You are aware that the price of gold depends on the price of gold set in London by the LBMA ( London Bullion Market Association ). The latter changes several times a day and fluctuates enormously for several reasons. The fluctuation in the price of gold means that its price often goes down and up.
Indeed, the yellow metal being quite coveted, these fluctuations are mainly governed by the law of supply and demand. But this is not the only reason why its price changes because the price of gold is also influenced by global geopolitics, i.e. world events, can impact stock markets and the world economy. . Therefore, it is important to know that the price of gold has a countercyclical aspect: that is to say that it works in opposition to the market on the world stock exchanges. This means that when the markets are in crisis, the price of gold goes up, and vice versa. Take as an example the Covid-19 health crisis, which is a current geopolitical event. The latter completely impacted the global economy in the wrong direction and as a result, the price of gold exploded in August 2020 and played its role as a safe haven more than ever.
When is the best time to buy gold?
As said previously, gold is a safe haven: this precious metal, therefore, has more interest as a savings value and is ultimately not very suitable for speculative practices. It is for this reason that there are no good times per se to buy gold.
Certainly, its price fluctuates, and it is normal to always want to buy it at its lowest price. But given the geopolitical context and other reasons that influence the price of gold, we cannot know in advance whether its price will fall or rise in the coming days. But one thing is certain, saving in the yellow metal allows you to protect part of your savings from inflation thanks to its safe haven. In addition, we notice over the thirty years that its price is higher than 30 or 20 years ago, and proves that gold is an investment that can pay off in the long term.
It is in this logic that professional investors advise investing in gold often and in small quantities. In this way, you limit the impact of the fluctuation in the price of gold, since the downtrends in gold will offset the uptrends.
Investing in gold allows you to build savings little by little, and is the best way to diversify your investments. The security of the yellow metal could compensate for the possible loss of other more volatile investments. And thus, offers the possibility of securing one’s savings in the face of inflation and global economic uncertainties.…
The post When To Buy Gold IRA? appeared first on Best Gold IRA Companies.
[atom_content] =>Many people want to buy gold, but many also wait for the right moment to take the plunge. Is there a really good time to buy gold? Why does the price of gold fluctuate so much?
Why does the price of gold fluctuate?
You are aware that the price of gold depends on the price of gold set in London by the LBMA ( London Bullion Market Association ). The latter changes several times a day and fluctuates enormously for several reasons. The fluctuation in the price of gold means that its price often goes down and up.
Indeed, the yellow metal being quite coveted, these fluctuations are mainly governed by the law of supply and demand. But this is not the only reason why its price changes because the price of gold is also influenced by global geopolitics, i.e. world events, can impact stock markets and the world economy. . Therefore, it is important to know that the price of gold has a countercyclical aspect: that is to say that it works in opposition to the market on the world stock exchanges. This means that when the markets are in crisis, the price of gold goes up, and vice versa. Take as an example the Covid-19 health crisis, which is a current geopolitical event. The latter completely impacted the global economy in the wrong direction and as a result, the price of gold exploded in August 2020 and played its role as a safe haven more than ever.
When is the best time to buy gold?
As said previously, gold is a safe haven: this precious metal, therefore, has more interest as a savings value and is ultimately not very suitable for speculative practices. It is for this reason that there are no good times per se to buy gold.
Certainly, its price fluctuates, and it is normal to always want to buy it at its lowest price. But given the geopolitical context and other reasons that influence the price of gold, we cannot know in advance whether its price will fall or rise in the coming days. But one thing is certain, saving in the yellow metal allows you to protect part of your savings from inflation thanks to its safe haven. In addition, we notice over the thirty years that its price is higher than 30 or 20 years ago, and proves that gold is an investment that can pay off in the long term.
It is in this logic that professional investors advise investing in gold often and in small quantities. In this way, you limit the impact of the fluctuation in the price of gold, since the downtrends in gold will offset the uptrends.
Investing in gold allows you to build savings little by little, and is the best way to diversify your investments. The security of the yellow metal could compensate for the possible loss of other more volatile investments. And thus, offers the possibility of securing one’s savings in the face of inflation and global economic uncertainties.…
The post When To Buy Gold IRA? appeared first on Best Gold IRA Companies.
) [4] => Array ( [title] => Gold And Bitcoin, An Updated Comparison [link] => https://companiesgoldira.best/gold-and-bitcoin-an-updated-comparison/ [dc] => Array ( [creator] => Armando Lewis ) [pubdate] => Wed, 16 Nov 2022 12:04:43 +0000 [category] => Bitcoin [guid] => https://companiesgoldira.best/?p=43 [description] =>Virtual currencies have experienced growing success since the creation of the genesis block, the first block of Bitcoin, in January 2009. This such success that today the Larousse dictionary, a reference institution in the language, defines crypto-currencies as follows: The latter being “ virtual means of payment usable mainly on the Internet, relying on cryptography to secure transactions and the creation of units, and escaping any control from regulators and central banks ”.
Proof of the enthusiasm they arouse, in 2019 the Ministry of Economy and Finance identified 2,871 crypto-currencies in circulation in the world ( Bitcoin, Dodge, Ether, Ripple, etc.) for a cumulative value of 2000 billion US dollars (abbreviated USD) as of April 2021. Some companies no longer hesitate to qualify these digital assets as safe havens, in the same way as gold, despite one of the most volatile prices, such as the recent setbacks of Bitcoin, the price of which between April and July. 2021 fell by 50%.
The comparison with gold seems all the more delicate since crypto-currencies are not tangible assets and they do not seem to perfectly meet the canonical definition of a currency, the latter being a unit of account, a medium of exchange, and a store of value. It is moreover on this last function that the difference with gold is the most remarkable.
Therefore, to draw a comparison between gold and a crypto-currency, it seems more relevant to compare their volatility and their profitability in the long term.
Cryptocurrencies ignite and burn
First, a comparison of the assets considered should be drawn up based on their volatility.
The latest bitcoin news
On Tuesday, April 13, 2021, the price of Bitcoin reached 62,732 USD. On Friday, July 16, 2021, the value of this asset had fallen below the USD 27,000 mark, a drop of 57% in three months. While recent price trends alarm some specialists like Michael Burry – the very man who announced the 2008 subprime crisis – it is of course premature to conclude that crypto-currencies are certain to die. However, these fluctuations make it possible to identify the first weakness of Bitcoin, and more broadly of crypto-currencies against gold: their volatility.
Tweets for economic fundamentals
This price volatility thus prevents crypto-currencies from becoming permanent stores of value. Digital assets do not have economic fundamentals and are not pegged to any value other than the law of supply and demand. Regarding Bitcoin “ We can neither see it, nor touch it, nor even attach it to any activity. […] bitcoin indeed does not have indisputable and undisputed fundamentals “. This lack of a foundation in the real economy, therefore, exposes them to influence games, in particular on social networks, as evidenced by Elon Musk’s interventions on Twitter. In January 2021, the leader of Tesla, who had added an “emoji” and the word “Bitcoin” to his Twitter micro biography, would have caused the price of this asset to jump by 14%.
The volatility of the price of gold is explained economically
Admittedly, the volatility of the price of gold is sometimes significant, up to more than 12% on average per day in 2008. Some will consider such differences significant, however, unlike cryptocurrencies, it is possible to analyze these fluctuations economically. In fact, this metal is a safe haven asset and we observe a countercyclical trend in its price. The tighter the economic situation, the more gold is valued by investors and vice versa.
…
The post Gold And Bitcoin, An Updated Comparison appeared first on Best Gold IRA Companies.
[content] => Array ( [encoded] =>Virtual currencies have experienced growing success since the creation of the genesis block, the first block of Bitcoin, in January 2009. This such success that today the Larousse dictionary, a reference institution in the language, defines crypto-currencies as follows: The latter being “ virtual means of payment usable mainly on the Internet, relying on cryptography to secure transactions and the creation of units, and escaping any control from regulators and central banks ”.
Proof of the enthusiasm they arouse, in 2019 the Ministry of Economy and Finance identified 2,871 crypto-currencies in circulation in the world ( Bitcoin, Dodge, Ether, Ripple, etc.) for a cumulative value of 2000 billion US dollars (abbreviated USD) as of April 2021. Some companies no longer hesitate to qualify these digital assets as safe havens, in the same way as gold, despite one of the most volatile prices, such as the recent setbacks of Bitcoin, the price of which between April and July. 2021 fell by 50%.
The comparison with gold seems all the more delicate since crypto-currencies are not tangible assets and they do not seem to perfectly meet the canonical definition of a currency, the latter being a unit of account, a medium of exchange, and a store of value. It is moreover on this last function that the difference with gold is the most remarkable.
Therefore, to draw a comparison between gold and a crypto-currency, it seems more relevant to compare their volatility and their profitability in the long term.
Cryptocurrencies ignite and burn
First, a comparison of the assets considered should be drawn up based on their volatility.
The latest bitcoin news
On Tuesday, April 13, 2021, the price of Bitcoin reached 62,732 USD. On Friday, July 16, 2021, the value of this asset had fallen below the USD 27,000 mark, a drop of 57% in three months. While recent price trends alarm some specialists like Michael Burry – the very man who announced the 2008 subprime crisis – it is of course premature to conclude that crypto-currencies are certain to die. However, these fluctuations make it possible to identify the first weakness of Bitcoin, and more broadly of crypto-currencies against gold: their volatility.
Tweets for economic fundamentals
This price volatility thus prevents crypto-currencies from becoming permanent stores of value. Digital assets do not have economic fundamentals and are not pegged to any value other than the law of supply and demand. Regarding Bitcoin “ We can neither see it, nor touch it, nor even attach it to any activity. […] bitcoin indeed does not have indisputable and undisputed fundamentals “. This lack of a foundation in the real economy, therefore, exposes them to influence games, in particular on social networks, as evidenced by Elon Musk’s interventions on Twitter. In January 2021, the leader of Tesla, who had added an “emoji” and the word “Bitcoin” to his Twitter micro biography, would have caused the price of this asset to jump by 14%.
The volatility of the price of gold is explained economically
Admittedly, the volatility of the price of gold is sometimes significant, up to more than 12% on average per day in 2008. Some will consider such differences significant, however, unlike cryptocurrencies, it is possible to analyze these fluctuations economically. In fact, this metal is a safe haven asset and we observe a countercyclical trend in its price. The tighter the economic situation, the more gold is valued by investors and vice versa.
…
The post Gold And Bitcoin, An Updated Comparison appeared first on Best Gold IRA Companies.
) [summary] =>Virtual currencies have experienced growing success since the creation of the genesis block, the first block of Bitcoin, in January 2009. This such success that today the Larousse dictionary, a reference institution in the language, defines crypto-currencies as follows: The latter being “ virtual means of payment usable mainly on the Internet, relying on cryptography to secure transactions and the creation of units, and escaping any control from regulators and central banks ”.
Proof of the enthusiasm they arouse, in 2019 the Ministry of Economy and Finance identified 2,871 crypto-currencies in circulation in the world ( Bitcoin, Dodge, Ether, Ripple, etc.) for a cumulative value of 2000 billion US dollars (abbreviated USD) as of April 2021. Some companies no longer hesitate to qualify these digital assets as safe havens, in the same way as gold, despite one of the most volatile prices, such as the recent setbacks of Bitcoin, the price of which between April and July. 2021 fell by 50%.
The comparison with gold seems all the more delicate since crypto-currencies are not tangible assets and they do not seem to perfectly meet the canonical definition of a currency, the latter being a unit of account, a medium of exchange, and a store of value. It is moreover on this last function that the difference with gold is the most remarkable.
Therefore, to draw a comparison between gold and a crypto-currency, it seems more relevant to compare their volatility and their profitability in the long term.
Cryptocurrencies ignite and burn
First, a comparison of the assets considered should be drawn up based on their volatility.
The latest bitcoin news
On Tuesday, April 13, 2021, the price of Bitcoin reached 62,732 USD. On Friday, July 16, 2021, the value of this asset had fallen below the USD 27,000 mark, a drop of 57% in three months. While recent price trends alarm some specialists like Michael Burry – the very man who announced the 2008 subprime crisis – it is of course premature to conclude that crypto-currencies are certain to die. However, these fluctuations make it possible to identify the first weakness of Bitcoin, and more broadly of crypto-currencies against gold: their volatility.
Tweets for economic fundamentals
This price volatility thus prevents crypto-currencies from becoming permanent stores of value. Digital assets do not have economic fundamentals and are not pegged to any value other than the law of supply and demand. Regarding Bitcoin “ We can neither see it, nor touch it, nor even attach it to any activity. […] bitcoin indeed does not have indisputable and undisputed fundamentals “. This lack of a foundation in the real economy, therefore, exposes them to influence games, in particular on social networks, as evidenced by Elon Musk’s interventions on Twitter. In January 2021, the leader of Tesla, who had added an “emoji” and the word “Bitcoin” to his Twitter micro biography, would have caused the price of this asset to jump by 14%.
The volatility of the price of gold is explained economically
Admittedly, the volatility of the price of gold is sometimes significant, up to more than 12% on average per day in 2008. Some will consider such differences significant, however, unlike cryptocurrencies, it is possible to analyze these fluctuations economically. In fact, this metal is a safe haven asset and we observe a countercyclical trend in its price. The tighter the economic situation, the more gold is valued by investors and vice versa.
…
The post Gold And Bitcoin, An Updated Comparison appeared first on Best Gold IRA Companies.
[atom_content] =>Virtual currencies have experienced growing success since the creation of the genesis block, the first block of Bitcoin, in January 2009. This such success that today the Larousse dictionary, a reference institution in the language, defines crypto-currencies as follows: The latter being “ virtual means of payment usable mainly on the Internet, relying on cryptography to secure transactions and the creation of units, and escaping any control from regulators and central banks ”.
Proof of the enthusiasm they arouse, in 2019 the Ministry of Economy and Finance identified 2,871 crypto-currencies in circulation in the world ( Bitcoin, Dodge, Ether, Ripple, etc.) for a cumulative value of 2000 billion US dollars (abbreviated USD) as of April 2021. Some companies no longer hesitate to qualify these digital assets as safe havens, in the same way as gold, despite one of the most volatile prices, such as the recent setbacks of Bitcoin, the price of which between April and July. 2021 fell by 50%.
The comparison with gold seems all the more delicate since crypto-currencies are not tangible assets and they do not seem to perfectly meet the canonical definition of a currency, the latter being a unit of account, a medium of exchange, and a store of value. It is moreover on this last function that the difference with gold is the most remarkable.
Therefore, to draw a comparison between gold and a crypto-currency, it seems more relevant to compare their volatility and their profitability in the long term.
Cryptocurrencies ignite and burn
First, a comparison of the assets considered should be drawn up based on their volatility.
The latest bitcoin news
On Tuesday, April 13, 2021, the price of Bitcoin reached 62,732 USD. On Friday, July 16, 2021, the value of this asset had fallen below the USD 27,000 mark, a drop of 57% in three months. While recent price trends alarm some specialists like Michael Burry – the very man who announced the 2008 subprime crisis – it is of course premature to conclude that crypto-currencies are certain to die. However, these fluctuations make it possible to identify the first weakness of Bitcoin, and more broadly of crypto-currencies against gold: their volatility.
Tweets for economic fundamentals
This price volatility thus prevents crypto-currencies from becoming permanent stores of value. Digital assets do not have economic fundamentals and are not pegged to any value other than the law of supply and demand. Regarding Bitcoin “ We can neither see it, nor touch it, nor even attach it to any activity. […] bitcoin indeed does not have indisputable and undisputed fundamentals “. This lack of a foundation in the real economy, therefore, exposes them to influence games, in particular on social networks, as evidenced by Elon Musk’s interventions on Twitter. In January 2021, the leader of Tesla, who had added an “emoji” and the word “Bitcoin” to his Twitter micro biography, would have caused the price of this asset to jump by 14%.
The volatility of the price of gold is explained economically
Admittedly, the volatility of the price of gold is sometimes significant, up to more than 12% on average per day in 2008. Some will consider such differences significant, however, unlike cryptocurrencies, it is possible to analyze these fluctuations economically. In fact, this metal is a safe haven asset and we observe a countercyclical trend in its price. The tighter the economic situation, the more gold is valued by investors and vice versa.
…
The post Gold And Bitcoin, An Updated Comparison appeared first on Best Gold IRA Companies.
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