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Dave Ramsey's Opinion on Gold
dollardude
Posts: 1,263
I know I have posted on this topic before, but I just thought I'd stir the pot one more time.
I just got through reading Dave Ramsey's new book, The Total Money Makeover, (c) 2003 by Dave Ramsey. Yes, I know he is a smartaleck, but if you ignore his bad attitude and just listen to what he has to say, sometimes he makes some sense. I highly recommend this book for anyone interested in personal finance. In it, he discusses gold. Without plajorizing his book, I'd like to share a few of his thoughts here (he also said this on his radio talk show). In his new book, he says:
"Myth: Gold is a good investment and will cover me if the economy collapses.
Truth: Gold has a poor track record and isn't used when an economy collapses."
He says that since the beginning of time, gold has been the standard of exchange. The mythsayer follows this up with the fact that in a failed economy, gold will retain its value. The truth is that if you go all the way back to Napoleon's time, gold has averaged around +2% per year. In just the past 50 years, it has averaged +4.4% per year, or about the same as inflation. During this same time, good growth-stock mutual funds have made around +12% per year, and have had less volitility. Even if the economy were to fail, a barter system would evolve where people would trade goods and services.
I know many people disagree with me on this based on the fact that the current economic and political situation is different, and I hear you. However, I just wanted to share this. His web site is at link.
I just got through reading Dave Ramsey's new book, The Total Money Makeover, (c) 2003 by Dave Ramsey. Yes, I know he is a smartaleck, but if you ignore his bad attitude and just listen to what he has to say, sometimes he makes some sense. I highly recommend this book for anyone interested in personal finance. In it, he discusses gold. Without plajorizing his book, I'd like to share a few of his thoughts here (he also said this on his radio talk show). In his new book, he says:
"Myth: Gold is a good investment and will cover me if the economy collapses.
Truth: Gold has a poor track record and isn't used when an economy collapses."
He says that since the beginning of time, gold has been the standard of exchange. The mythsayer follows this up with the fact that in a failed economy, gold will retain its value. The truth is that if you go all the way back to Napoleon's time, gold has averaged around +2% per year. In just the past 50 years, it has averaged +4.4% per year, or about the same as inflation. During this same time, good growth-stock mutual funds have made around +12% per year, and have had less volitility. Even if the economy were to fail, a barter system would evolve where people would trade goods and services.
I know many people disagree with me on this based on the fact that the current economic and political situation is different, and I hear you. However, I just wanted to share this. His web site is at link.
Author of MrKelso's official cheat thread words of wisdom on 5/30/04. 
Check out a Vanguard Roth IRA.
Check out a Vanguard Roth IRA.
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