Does Dave Ramsey Recommend Investing in Gold and Silver?
Dave Ramsey is a successful businessman and best-selling author who draws upon both his own past money mistakes as well as biblical scripture to teach intelligent financial management practices. Through this philosophy he has built an empire around his teachings – with millions of followers following in his wake.
One of the more perplexing aspects of his advice involves gold and silver investments; according to him, they won’t protect you against inflation.
Emotional Investment
Many are drawn to gold and silver because of the emotional security they gain by holding tangible, historically significant assets; however, letting emotion override sound judgment could lead to poor investment decisions; selling physical gold could prove costly and time consuming; as a result it’s essential that prior to making any investing decisions you conduct thorough research and consult financial experts first.
Gold may seem attractive if the dollar declines; however, buying it with this intention could end up costing you big time in terms of lost capital and taxes associated with purchases. Therefore, precious metals should be seen as an alternative investment class alongside stocks and other asset classes; to do this successfully you must remain rational while avoiding high-pressure sales tactics; with enough research into market movements you’ll find profitable investment opportunities; gold and silver can provide diversification as a smart way of future proofing portfolios.
Volatility
Gold and silver prices can fluctuate significantly within short timeframes due to a range of factors including changes in investor sentiment, economic news updates and supply and demand dynamics.
Many investors choose to diversify their portfolio with physical precious metals like gold and silver, such as BullionVault bars or American Eagle coins held within Morgan Stanley brokerage accounts (though this option incurs storage and transportation fees).
Precious metals can also be purchased in certificate form, though it does not provide as much security. When making any investment decision, it’s important to carefully consider both risks and benefits before making a final decision. SmartAsset provides free tools that connect investors with qualified financial advisors in their locality who can assist with creating comprehensive wealth plans.
Historical Performance
Though past performance cannot predict future outcomes, gold’s price history can provide insights into potential buying and selling opportunities. Examining silver’s price history in particular can reveal patterns which might point to potential turnaround after an adverse trend or market selloff.
Silver prices were initially devastated during the 2008 financial crisis. Yet, soon afterwards they rebounded and reached record highs just one year after S&P 500 hit bottom.
Historical results support investing in silver as it could outperform stocks and other investments during a market crash. Morgan Stanley clients often opt to purchase physical precious metals such as gold bars or American Eagle coins held within brokerage accounts or retirement accounts. They may also choose digital precious metals accounts that enable easier purchases at lower costs.
Conclusions
At the core, emotional decisions when it comes to investing can quickly lead to financial misfortune. Do your research and take history into account before making major investments; additionally, ensure your portfolio remains diverse by spreading out investments over multiple accounts.
If you want to protect your savings against inflation, precious metals might be a worthwhile option. Just keep in mind that they do not produce cash and their prices fluctuate based on supply and demand; additionally, gold collectibles may incur higher tax rates than other investments.
Dave Ramsey is a personal finance evangelist and founder of Ramsey Solutions. Since 1992, his mission has been to change the toxic money culture with biblically-based common-sense education and empowerment programs that benefit everyone involved in financial matters. Check out his podcasts or visit his website for more information!
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