Dave Ramsey has made it his business to teach others the fundamental principles of effective money management after experiencing his own personal financial disasters and bankruptcy. His approach emphasizes saving in cash equivalents, diversified mutual funds and paid-for real estate as the best ways to save.
But he dismisses the value of precious metals such as gold and silver. What he fails to recognize is that gold protects against inflation.
Investing in Gold
Dave Ramsey is an iconic financial personality with an immense fanbase across radio shows, podcasts and books. Known for his advice on personal finances and helping people overcome debt, his approach to investing differs significantly from that of most notable advisors and investors: instead of investing in speculation like gold he advocates saving, buying homes/rental properties/stocks and bonds/real estate as ways to build wealth and grow his portfolio.
Precious metals like gold and silver have long been used as stores of value, and many investors and financial advisors such as Ray Dalio suggest allocating some funds in your portfolio towards precious metals as they provide some protection from runaway inflation.
However, other experts, including personal finance guru Dave Ramsey, caution against investing in gold. According to him, investing in gold is not profitable in terms of long-term wealth creation and should instead be placed into safer investment vehicles such as savings accounts, money market accounts and CDs with guaranteed interest or your 401(k).
While precious metals may be subject to sudden market shifts, they also possess the potential for steady gains over time and provide a safe haven in times of economic instability – which explains why many successful investors such as Kevin O’Leary and Stanley Druckenmiller hold significant portions of their portfolios in gold.
If you’re curious to gain more information about gold’s potential impact on your portfolio, Atlanta Gold & Coin Buyers recommend speaking to a precious metals expert such as them at Atlanta Gold & Coin Buyers. Their experts can guide you through the ups and downs of the gold market to determine whether investing could make sense given your unique circumstances.
Buying Physical Gold
One reason that buying physical gold may be better than investing in something like a Gold ETF is that with physical bullion you have complete control of your assets – meaning you can sell or trade whenever desired and without worrying about earnings reports, dividend payments or unsatisfied shareholders which might reduce a company‘s share price.
Physical gold also offers you liquidity benefits, which allows for quick cash transfers within days or weeks, unlike selling stock or collectibles. Unfortunately, physical gold takes up space and requires safe storage solutions to prevent loss.
Many people choose to store their gold at home or in a bank vault; however, many prefer purchasing an approved storage facility or safe for this purpose. Some companies specialize in offering solutions and private vaults for this purpose, while others provide storage at third party sites. No matter which choice you make, always work with an established and reputable business in order to safeguard your investment.
No matter your investment strategy, diversifying your portfolio with various assets to reduce risk of loss is always key. While gold should never replace other forms of investments and should only form part of your total wealth portfolio, for some people keeping some savings in gold as an insurance against possible future financial crises is wise move – particularly as US currency steadily loses value against global peers such as gold. As Dave Ramsey recommends, keeping 10-15% of your savings invested in precious metals to maintain value of funds in your accounts.