Does Dave Ramsey Recommend Investing in Gold?
Dave Ramsey’s financial advice often steers people away from investing in gold. According to him, precious metals do not represent good investments and that instead people should put their savings into something like real estate or their 401k.
Precious metals tend to offer low rates of return; however, before making your final decision on an investment in precious metals it is essential that you consider all the benefits they bring to you.
Gold investments provide an effective way to diversify your retirement portfolio. While stocks and bonds may fluctuate wildly in value, gold usually remains stable or appreciates, making it an excellent asset during times of economic instability.
Gold investment offers you an alternative investment option in times of high inflation rates. Gold has historically kept pace with inflation over time, providing an effective hedge against rising costs.
Physical gold doesn’t rely on third parties for ownership or sale, meaning you are in total control of your investment and directly in charge of its safety. Furthermore, gold can be passed from generation to generation, guaranteeing long-term capital growth for you and your family.
Tax implications when investing in gold should also be taken into account, particularly capital gains taxes on physical coins or bars and any ETF that contains precious metals; your overall tax situation will dictate exactly how much tax is owed.
Some may believe that gold can provide protection from inflation; however, there’s little reason for such thinking – since 1971 when the U.S. stopped exchanging gold for dollars, its prices have been closely associated with stock market movements and commodity currencies.
Investment in precious metals may not be the most efficient way to combat inflation; rather, focus on paying down debt and investing in assets with proven profitability such as rental properties or stocks. To learn more about investing in gold, reach out to an Atlanta Gold & Coin Buyers expert for advice.
Gold may seem like an appealing investment option, but it might not be ideal if your primary concern is growing your wealth through dividends or interest payments. While it won’t provide these returns directly, gold can help protect against inflation while providing protection from price swings.
Physical gold investments (like coins or jewelry) are vulnerable to theft, making it hard to sell quickly for an attractive price. But shares in gold mining companies or exchange-traded funds offer similar performance.
As with any investment decision, research is key when investing in gold or other precious metals. At Atlanta Gold & Coin Buyers, our precious metals advisors can assist in optimizing your investments – contact us now to learn more! Additionally, we can explain the benefits of a SEP Gold IRA specifically designed for self-employed individuals and small business owners.
Financial experts like Warren Buffett and Dave Ramsey do not endorse investing in precious metals as they believe this will occupy too much time of your time, rather than building equity in your home, growing mutual funds or increasing retirement savings in a 401(k).
Gold may not provide dividends or other financial returns, but its value doesn’t decline and should be seen as an investment and store of wealth.
Gold has long been considered an inflation hedge; during the 1973-79 inflationary period, its price increased annually at 35%. Furthermore, it serves as a diversifier within a portfolio of stocks and bonds, being often less costly than other forms of bullion; making it especially appealing to smaller investors looking to add some gold into their portfolios. When buying bullion though, premiums, fees, and commissions should always be taken into consideration as these expenses can substantially eat into your profits.