Dave Ramsey trashes owning gold

[Seamuss]

If you have physical gold and want to trash it then I have room for it. I'm not proud. I'll take your trash and call it treasure.

 

Amazon Forum Fav 👍

Family Maps of Hinds County, Mississippi, Deluxe Edition - Grab it through Amazon!

[Sykesvillecoin]

Oh, and I'd prefer to invest in silver, gold is too compact. The way I see it, if the s*** really does hit the fan, would you want to pay for a half dozen eggs and a loaf of bread with a $50 gold coin? How could you make change? What if someone saw it, and figured theres more where that came from? Im investing in junk silver. Its worth more to me.

yeah, I'm investing in silver too, 10 ounces of silver, in my opinion, is worth more than an ounce of gold because people won't be able to make change when the dollar goes to zero because it'll be very hard for people to quantify value in terms of real money because we're all used to quantifying value in terms of monopoly money. When you ask what the value of gold is, instead of saying 20 ounces of silver or 50 ounces of silver, we quote the value of gold in terms of dollars, same with silver, we don't base the value of silver as being equal to a set amount of another commodity, we base the value in dollars, so when the dollar becomes worthless nobody will be able to make change because nobody will know how to make change in terms of commodities because we've all been conditioned to make change in dollars, that is why I like silver better than gold.

Also, to get back on the topic of dave ramsey, I think the guy can be a total jerk because he's so cocky with his opinions and he can't tell the difference between facts and opinions when it comes to his own views. That's just my opinion anyway. Btw, for those of you who invest in mutual funds, what fees has your mutual fund company taken out of your money? Did you know that you can be liable for the mutual fund's capital gains tax even if you yourself don't realize any capital gains from the investment? I know this is alittle off topic, but since the topic was brought up because of the topic of dave ramsey was brought up, I thought I'd put my 2 cents out their too. Personally, I think he's bought and paid for by the mutual fund companies he recommends, which is why I don't listen to him.

 

[AU24K]

I'm assuming that this concept is what people mean when they talk about a "ratio." This is a very good topic, I think there is another thread that discusses some aspects of the "ratio" idea.
Back in the late 1800's, it was something like 16:1.
I have no idea what it is today...maybe 65:1?
If gold tumbles, does silver go along for the downward ride also?


Scott

 

[clovis97]

I'm a huge fan of Dave, and have been listening to his show since it was called The Money Show. (Or was it called the Money Game?)

Anyway, I think Dave is referring to investing in gold on paper.

There have been tons of scams in the past, with the most common being the old scam of "we'll invest it for you." They take your money, put it into paper, and then "trade for you", making high commissions when they buy and sell for you, up to 10 times a week.

These scams and schemes used to be so popular that, I personally didn't know for years that you could walk into a coin shop and walk out with real bullion. I was given the impression that all the gold was held buy others, even though you could 'buy' it. These used to be advertised all the time on AM talk radio shows, about how you could get rich with gold for only a $10,000 investment.

I knew a guy that reluctantly told me about his gold investment. He 'invested' his money with one of those advertisers, and they promptly charged him a 'transfer fee' of $300, I think, just to buy the gold for him. They then 'traded' the gold at $40 per buy and sell, so in essence, they made $80 on each trade....and they did those trades until the investment was wiped out. This happened while gold was falling at a rapid rate.

That is why Dave dislikes gold as an investment....he isn't talking about guys like us...he's talking to the masses and basically saying "don't get taken by these scam artists". And if we put ourselves in his seat for a few days, and you were advising the financial futures of millions of people, would you still recommend gold as an investment, knowing there are so many scams out there

 

[Goodyguy]

I'm a huge fan of Dave, and have been listening to his show since it was called The Money Show. (Or was it called the Money Game?)

Anyway, I think Dave is referring to investing in gold on paper.

There have been tons of scams in the past, with the most common being the old scam of "we'll invest it for you." They take your money, put it into paper, and then "trade for you", making high commissions when they buy and sell for you, up to 10 times a week.

These scams and schemes used to be so popular that, I personally didn't know for years that you could walk into a coin shop and walk out with real bullion. I was given the impression that all the gold was held buy others, even though you could 'buy' it. These used to be advertised all the time on AM talk radio shows, about how you could get rich with gold for only a $10,000 investment.

I knew a guy that reluctantly told me about his gold investment. He 'invested' his money with one of those advertisers, and they promptly charged him a 'transfer fee' of $300, I think, just to buy the gold for him. They then 'traded' the gold at $40 per buy and sell, so in essence, they made $80 on each trade....and they did those trades until the investment was wiped out. This happened while gold was falling at a rapid rate.

That is why Dave dislikes gold as an investment....he isn't talking about guys like us...he's talking to the masses and basically saying "don't get taken by these scam artists". And if we put ourselves in his seat for a few days, and you were advising the financial futures of millions of people, would you still recommend gold as an investment, knowing there are so many scams out there

That makes sense to me.

 

[Immy]

Glad you resurrected my thread clovis cuz I couldn't believe what I heard Dave say last month. He actually endorsed a cash-for-gold mail order company, maybe the biggest scammers to surface since PMs went up. Is he just naive about gold?

 

[AU24K]

Most all "talk radio" personalities are driven by advertising revenue.
Do the math...

Best,
Scott

 

[Immy]

Most all "talk radio" personalities are driven by advertising revenue.
Do the math...

I find it amazing that he's willing to risk his good reputation for advertising revenue. A few shady endorsements and people will start questioning his advice.

 

[goldencoin]

Gold will always be worth something. We used to barter for things in the past and it sucked, the things we barter for are not compact and cannot be stored for long times. That's when people switched to precious metals, they are compact and able to retain their value for a long time, unlike ammo, food, etc. The first few years after a SHTF event would be bartering, but afterwords, gold, silver, and copper will regain their rightful place as currency. Think what a gold coin bought in the old days..

HH
-GC

 

[clovis97]

Glad you resurrected my thread clovis cuz I couldn't believe what I heard Dave say last month. He actually endorsed a cash-for-gold mail order company, maybe the biggest scammers to surface since PMs went up. Is he just naive about gold?

I listen to Dave so much that I could almost recite that very commercial, LOL.

I too, am a bit perplexed by his endorsement for "gold stash for cash". As sharp as he is about a wide variety of things, I wonder if DR is just clueless about gold and the industry.

Either way, I still like DR. I don't agree with every word that comes out of his mouth, but his basic message is solid and clear. I've worked the plan twice...the first time while I was single, and a second time when I got married, and the wife had debt.

 

[clovis97]

The Dave haters are going to love today's episode...

Dave railed on gold as an investment again today. Paraphrasing what he says:

1. Gold is a bubble right now @ $1400 an ounce.
2. Gold is an emotional purchase, that is fear based.
3. Gold has a lower return on investment, as a long term value, even though it has had a 23% ROI in the past 5 years.
4. Gold is not a common currency if stuff hits the fan.

Let's not forget that these are Dave's thoughts, not mine. Nonetheless, I still think DR is the greatest thing since sliced bread. I have my own opinions on the topic.

 

[RW]

I think if it ever gets to the point that we need gold to make transactions that the govmt. would make it illegal as they did in the past. It would be far easier to use silver for most daily bartering anyway. As far as Dave goes, I tuned out years ago when I heard him say to pay off the highest balance credit cards first as opposed to paying off the ones with the highest interest rate first. Unless that is some sort of get over the hump mental strategy, I don't understand. Yes I bought his book and another he suggested... And I think owning physical gold is great!

 

[packerbacker]

Of course gold wasn't used after Katrina hit!.....................for a number of reasons. First of all, how many poor blacks in New Orleans have a stash of gold? This is not meant to be racial, it's just the facts. Then, who waited to see how they were going to get supplies? Not many; the looting started almost immediately and continued for days. If you are already prepared, you won't have to get involved in the looting and expose yourself and family to the dangers that will surely manifest. Eventually the good ol' government stepped in and issued them "credit" or "debit" cards to use. That was hilarious.......where in the heck were they supposed to shop......the looted out stores?? A lot of that money was spent on booze, smokes and traded for drugs. Much of the money was issued to people that didn't even get affected by Katrina. Heck, after that tsunami hit Sri Lanka a few years back, governments around the world threw tons of money at the country for rebuilding infrastructure and businesses better than they ever were. There were a lot of victims that received nothing but, many over there call it "The Golden Wave". Katrina was a very concentrated disaster, it wasn't millions of people wondering where their next meal was coming from. When that does happen I agree totally with Ivan and the list he made. We have everything on that list (and then some) covered already except for the medical supplies and salt. I also agree that gold will have too much value to make day-to-day black market purchases with. It's the people that have prepared or somewhat prepared ahead of time that will get by until the cavalry shows up. One ounce silver coins will be far more useable in times such as those, as will ammo.

 

[clovis97]

I think if it ever gets to the point that we need gold to make transactions that the govmt. would make it illegal as they did in the past. It would be far easier to use silver for most daily bartering anyway. As far as Dave goes, I tuned out years ago when I heard him say to pay off the highest balance credit cards first as opposed to paying off the ones with the highest interest rate first. Unless that is some sort of get over the hump mental strategy, I don't understand. Yes I bought his book and another he suggested... And I think owning physical gold is great!

I'm going to split hairs here...

Dave actually says to list all of your debts from lowest to highest, and pay off the lowest debt first, then the next lowest, and so on. His method says to basically throw everything you can into paying off those, and once you have the smallest paid off, roll what you would have paid into the next smallest one, and to make minimum payments anything else, until you get to that one.

It is a "get over the hump' mental thing. I remember back in '96 working his plan, and I was sooo excited to have my smallest debt, a $400 charge at a clothing store, paid off. You'd have thought I had just paid off $40,000! Man, was I ever excited!!!! I was so stoked to get onto my next highest balance of $550, and got it knocked out in record time. Then it was onto the next highest of $950, also knocked out lickety-split. By the time I hit my highest debt of $5,000, I knew that it was just a matter of hard work and a number of months to pay that silly thing off.

I agree with Dave though. The highest balance debt of $5,000 seemed impossible to pay off to me when I first started the plan. And when you really add up the interest from the highest rates, what would it add up to? A few hundred bucks? (Especially before 2008 when the CC companies jacked rates through the roof.)

This is what DR calls the debt snowball, BTW.

To each their own, though. If you like gold, go for it.

 

[clovis97]

Packerbacker, you have some very good points.

 

[jeff of pa]

He believes that "the only people who think you should own gold are people who sell gold."

All I know is, if I had bought five ounces three years ago and cashed in today I would more than double my money. I wish someone had called him on that.

Actually if that's his point I agree with him

& So should you.

Only reason to own it is to sell it at a profit.
Holding on to it till you die makes no sense to me.

Then someone else Profits.

 

[clovis97]

Jeff, I don't get that "hold it until you die" mentality either.

This past summer, a local estate had an auction, and the coin collection sold. The largest part of it was gold, which sold for nearly $1400 per coin (including 10% buyers premium) to a refinery buyer. 28 gold coins sold for well in excess of $30,000.

The estate was in trust, and their were no surviving family members, so I am told.

 

[Seamuss]

Owning gold is better then owning the greenback but there is a fine line in owning it just to hold it. Unless you can buy it really cheap like I did and sell it high like stocks then it would be better to dig it up and stock pile a few ounces so it doesn't cost you $1400 per ounce to aquire and hoard for years to make money on it. Silver is still a good buy for now but will be at a premium in a few more years like gold which will still go up a little for a while.
Do I have a few ounces of each, yes, but I'm not totally invested in either. I do believe in holding some gold and silver and will continue to hold some of each.

 

[Silver Surfer]

the #1 real thing long term wize will be water purifaction --folks got to have clean water peroid -- right after that comes food --seeds and land to grow crops on -- livestock to eat --- shelter and clothing --- guns for defending your self and goods as well as for hunting game animals -- fishing gear to to catch fish with, cooking and building tools and supplies .--ie hard core basic staple items medical supplies , salt , gun powder& reloading goods

because when a hungry armed man meets a supplied unarmed man --he will not be a hungry man for long

Couldnt have said it better myself.... Stocking up has been my priority for the last 6 months... The big problem with my (and your) theory though is.... If I cant get gas to fuel up my truck, how the hell am I going to haul said supplies around
Thats EXACTLY the reason why I am planning for a move to an area where I can cache a big load of the stuff (foodstuffs, ammo, weapons, etc) in a place that I could hide/live and only needed to worry about "hoofing" it to that spot... But I suppose that is a whole nother thread.. LOL..

 

[Seajay]

Like King Solomon advised long ago, "Invest in seven ventures, yes, in eight;
you do not know what disaster may come upon the land." In other words diversify. Cash on hand, some gold/silver, mutual funds, stock indexes, real estate, guns and ammo, food stores, etc. I think it comes down to balance and temperance. If one sector/investment goes south then, hopefully, everything else with cushion or soften the blow.

Seajay