Does Dave Ramsey Recommend Investing in Gold and Silver?
Personal finance guru Dave Ramsey is well-renowned for his radio show, podcasts, and books that have reached millions of Americans. His message promotes eliminating debt while investing in real estate or 401(k).
One of his popular pieces of advice was that precious metals are unwise investments, yet this advice is flawed in many ways.
Physical bullion
If you’re new to investing in precious metals, bullion could be the right option for you. It offers easy access and you can purchase bars or coins. When purchasing gold and silver from dealers, ensure they are accredited by the Better Business Bureau as well as verified through FINRA BrokerCheck.
Physical precious metals provide an effective hedge against potential financial crises. Unlike stocks or real estate investments, precious metals don’t lose value with inflation every day and don’t face counterparty risk; that is they don’t belong to another entity and can never be lost through theft.
Experts advise investors to allocate between 5%-20% of their portfolio into gold as it has proven its resilience during stock market crashes and economic recessions – something especially helpful in today’s unpredictable economy. Plus, buying physical precious metals makes trading simpler than dealing with stocks or collectibles items.
Mining stocks
Your gold and silver may not be edible, but owning some raw bullion still provides several advantages. Physical metals are non-debt assets that will not go bankrupt or require maintenance, unlike some investments (although you should store precious metals securely somewhere like in a home safe, attic or backyard buried among plants).
Mining stocks are an attractive investment choice as they produce both precious and industrial metals in steady streams. Mining stocks can be divided into majors and juniors; with majors representing companies with proven reserves and an established history in the industry while juniors could represent companies looking for natural resources with potential of becoming tomorrow’s next big thing.
Mining stocks may be highly unpredictable, yet can make for worthwhile long-term investments for investors who can stomach some degree of volatility and want dividend income. When considering mining investments it’s essential to assess a company’s reserves before investing and avoid those overly dependent on debt as this could decrease returns over time.
Exchange-traded funds
While many investors are focused on gold markets, silver investments should also be considered important assets. Silver has been used as a safe-haven investment asset for over 4,000 years; its price often fluctuates less dramatically than gold’s does. There are multiple ways of investing in silver: mining companies or coins are all viable ways of diversifying your portfolio.
Exchange-traded funds (ETFs) that track the price of silver are an easy way to gain exposure without dealing with physical bullion directly. You may even find ETFs which focus on specific currencies’ performance.
Gold can be owned through physical bullion purchases, but this option can be costly and difficult to sell or store. If you prefer taking less risk, shares in mining companies or precious metals mutual funds might be better options, since these investments are much simpler to sell or transfer.
Collectibles
Collectibles add a special element to any portfolio. Not only can they act as an asset store of value and tax benefits, but collectibles also come with unique rules and regulations in some countries that could present opportunities. Speak with an expert in this area for further advice.
Silver may get less recognition, but it remains an attractive investment option. Silver has been used as a currency for more than four millennia and is considered a safe haven asset – yet more price fluctuations occur due to having a smaller market than gold.
Though Ramsey may be correct that precious metals do not generate income, they still offer great ways to diversify your portfolio and protect against inflation. Silver has intrinsic value unlike paper money printed by central banks; therefore, silver investments provide diversification against price movements as well.
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