Dave Ramsey on Gold
mrpaseo
Posts: 4,753 ✭✭✭
Basically, he is 100% against it. Dave on Gold.
Given his position (Financially smart, millionaire) do you think his opinions generate from the fact that he is financially stable?
Opinions welcomed,
Ray
Given his position (Financially smart, millionaire) do you think his opinions generate from the fact that he is financially stable?
Opinions welcomed,
Ray
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Comments
$400 to $500 range. He also says you should cut your credit cards up but I pay mine off every month and receive rewards every 3 months that amounts to $50 or $60. Just because he is an expert does not make everything he says right in my opinion.To each his own I guess.
At the very least, He knows that the Big Haircut is coming but he continues to push paper savings. No Gold, Land or any other hard asset you can touch or stand in front of it?
Example:
"Certificates of Deposit (CDs):
Dave recommends CDs only for savings (for a purchase, taxes if you own a business, etc.), not for long-term investing because of their low rate of return. Long-term investments must earn a high enough rate of return to outpace inflation (3-4% per year) and cover taxes on the gains if not inside a retirement account. Most investors need to average a minimum of 6% per year over time to do these two things."
Good luck getting over 1 % let alone 2%
Think of a CD as convertible Stock/Equity position in your Bank when the FED institutes the "Bail-In" clause, lol!
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<< <i>Basically, he is 100% against it. Dave on Gold.
Given his position (Financially smart, millionaire) do you think his opinions generate from the fact that he is financially stable?
Opinions welcomed,
Ray >>
I would agree to the point that it's not a buy right now. I haven't bought much since it broke $1,000 or much silver since it broke $20. I've traded a lot though.
--Severian the Lame
<< <i>He is right on the philosophy of getting out of debt (age old advice), but He also says invest in Mutual Funds that buy stocks, bonds and other paper products. >>
You are correct on this.
<< <i>At the very least, He knows that the Big Haircut is coming but he continues to push paper savings. No Gold, Land or any other hard asset you can touch or stand in front of it? >>
Before you type, you need to have heard all of Dave's recommendations. He advises to buy income producing real estate if you're out of debt and have a fully funded emergency fund and retirement accounts (he recommends Growth Stock Mutual Funds).
<< <i>Dave recommends CDs only for savings (for a purchase, taxes if you own a business, etc.), not for long-term investing because of their low rate of return. >>
Unless I am misinterpreting this, you are incorrect on this.
He is anti-gold because of the risk it assumes being volitile. 2 years ago he was WAY against gold because it was at an all-time high. Would YOU want to buy something when it has been the highest it has ever been?? I guess from the mid-2000's to early 2011, he was incorrect about buying gold........but what about from then until now? Just think how upside down you'd be if you bought then and looked at the spot price now?
He sells ideas, and good ones to the average person who doesn't know how to use money and are dumb with money. When you get smarter with money after following his ideals, then you can assume more risk for more reward. He teaches this also.
Too many positive BST transactions with too many members to list.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
<< <i>If I remember right he did not like gold when it was in the $400 to $500 range. >>
From what I understand, Dave is a 100% long term investor. He says Gold is a commodity, this a short term investment. He does not believe in Gold as he feels it is just a rock.
<< <i>He also says you should cut your credit cards up but I pay mine off every month and receive rewards every 3 months that amounts to $50 or $60. >>
As I understand it, this advice is for the majority of people that do not understand that a CC should be a medium to spend currency that you already have. Most people use CC's to spend the currency that they have yet to earn. Many people with finance issues do not understand that they do not have the willpower to not use the cc's.
<< <i>Just because he is an expert does not make everything he says right in my opinion.To each his own I guess. >>
This is true, with EVERYONE. No one has it all right, but I feel everyone has something good to say. It's up to us to listen to them all, then sort out what we believe is true and react to how we feel. Right?
Thanks,
Ray
<< <i>I believe Dave is against it because he knows his audience. Look at who they are. Would you honestly recommend an investment with high volatility and large Bid-Ask spread to them? >>
A very good point you may.
<< <i>Dave Ramsey is the Walmart of financial advice. >>
Most of his audience are WM shoppers. I think he has a good, basic message but it's limited for a reason...the audience. He truly has helped a lot of sheeple. And God bless him for that (I say that because he ends each and every show with thanks to God.)
We here at the CUPM are not sheeple. We are way ahead of the curve even if we have the trend wrong. Most of us (can admit it to ourselves and) adjust accordingly. The DR-sheeple can't do that.
I too have been frustrated at his non-gold position...from about $400 on.
<< <i>
<< <i>If I remember right he did not like gold when it was in the $400 to $500 range. >>
From what I understand, Dave is a 100% long term investor. He says Gold is a commodity, this a short term investment. He does not believe in Gold as he feels it is just a rock.
>>
Neither gold nor silver are traditional investments - they don't pay dividends or interest. I even see that on precious metal forums.
Every once in a while, he mentions that he got burned on a gold investment many years ago, and grants that that experience has probably flavored his view of gold...
<< <i>
<< <i>He also says you should cut your credit cards up but I pay mine off every month and receive rewards every 3 months that amounts to $50 or $60. >>
As I understand it, this advice is for the majority of people that do not understand that a CC should be a medium to spend currency that you already have. Most people use CC's to spend the currency that they have yet to earn. Many people with finance issues do not understand that they do not have the willpower to not use the cc's.
>>
First, to add to what you are saying, most of Dave's audience has demonstrated that they can't handle debt properly. It is much easier to tell someone who can't handle debt "you can't have any debt" than it is to teach them "you can have debt if you pay it off at the end of each month." I suspect that it is easier for his audience to apply that philosophy, as well.
Second, there have been studies showing that people spend more when they are using credit than when they are using cash (which is why the fast food places started accepting credit cards) - apparently the brain treats cash (a "possession") differently than credit (just "numbers"). So if you're trying to spend less money, one way is to use cash instead of credit. That means that you need to ask yourself if you are spending an additional $50 - $60 per period (three months) that you wouldn't be spending if you were using cash or writing a check.
<< <i>
<< <i>Just because he is an expert does not make everything he says right in my opinion.To each his own I guess. >>
This is true, with EVERYONE. No one has it all right, but I feel everyone has something good to say. It's up to us to listen to them all, then sort out what we believe is true and react to how we feel. Right?
Thanks,
Ray
>>
While I understand and, given his audience, agree with his spending and debt philosophies, I don't agree with his retirement advice. Even though his growth mutual funds have lifetime annual returns of 12% or more, that is based on old history. The last time I looked for mutual funds with an annual return of 12% or more based on the last five or ten years, the only ones to pop up were gold funds (and I suspect that they won't show up any more).
Sentinel Small Cap (SIGWX) 10 YR AVERAGE RETURN: 11.87%
T Rowe Price Mid Cap Vaule (TRMCX) 10 Year Average Return 12.71%
Dlware Small Cap Vaule Fund (DEVIX) 10 YR Return 12.17%
Heartld vAULE Inst (HNTVX) 10 YR Return 11.52%
I can find more if you need to. I listen to Dave and follow his plan.
My Ebay Auctions
<< <i>Dave Ramsey is the Walmart of financial advice. >>
Like some are the Walmart of RE tycoons.
<< <i>
<< <i>Dave Ramsey is the Walmart of financial advice. >>
Like some are the Walmart of RE tycoons.
Dave tells a funny story where he went to a large apartment complex once just to see if he could rent an apartment (this was after he made his $millions and had not had any debt inquiries for a while and thus his credit score and report was almost non-existant). They ran his credit report and told them that he would not be able to rent a room due to such a bad/low credit report. He laughed and told the person that he had enough money to buy the entire complex in cash......
His whole premise is to TEACH people to be smart with their and tell their money what to do instead of their money telling them what they can do or to have no idea where it goes. Yes, the folks that are mainly drawn to him are folks that need help and don't know how to "use" money to their advantage and might appear to ignorant to more money educated folks, but by no means should they be considered dumb for listening to his financial advice for a lifestyle change. After that is when people have more knowledge and more control over their life to do better with their investing.
Baby Steps my friend.....
Too many positive BST transactions with too many members to list.
I think there are times when debt can be used constructively to make money, especially on a coin deal when one is not flush and doesn't want to take on a partner for 50%(or more) of the action.