Dave Ramsey – Should You Invest in Gold and Silver?
Gold and silver may seem like safe investments, but personal finance expert Dave Ramsey cautions against them as being effective long-term wealth builders. Instead, he suggests investing your funds in ways that bring higher returns while increasing wealth over time.
Consult a financial adviser in order to understand proper diversification and create an effective budget, which will allow you to achieve your financial goals while being better prepared for future scenarios.
It’s a store of value
Although precious metals may seem attractive as investments, they should not be seen as long-term options. You will waste too much time worrying about their current value without seeing any return for your money. Instead, invest in real estate or mutual funds which offer more stable returns on your money.
Precious metals should also be avoided because they do not serve as an asset to store value in times of economic instability, instead only being useful as bartering instruments if currency collapses – this has already happened in Venezuela according to personal finance expert Scott Burns.
Gold has generated only about 2% of annualized returns over the last 50 years compared with traditional investments like growth stock mutual funds and real estate, for instance. This difference can be significant; therefore, it’s essential that when making investment decisions you separate emotion from fact. To safeguard against downturns and protect your portfolio effectively speak to a financial advisor using SmartAsset’s free tool matching service; once connected you can interview them without cost for guidance to see who fits best into your portfolio.
It’s a safe haven
Dave Ramsey, a well-known personal finance author, advocates getting out of debt and saving money while diversifying investments with gold and silver purchases. Although some financial experts have criticized his advice, his advice has helped millions take control of their finances over time – one Baby Step at a time!
Gold and silver remain popular investments for their perceived protection from inflation, making them valuable assets during times of economic distress.
Gold’s utility is lower than silver, which is closely tied to industrial economies. The current ratio for gold-silver coins is 80:1, although investors can purchase smaller denominations as well – premiums will increase due to production costs being equal between one ounce coins and sub-1-ounce coins.
It’s a volatile investment
Silver is more affordable than gold, making it an attractive investment choice for investors with tighter budgets and smaller storage requirements. Furthermore, its reduced space requirements and lack of tarnish make silver an appealing asset – but when considering your silver purchase be sure to review any premiums, fees, or commissions which might apply when considering your options.
Silver and gold prices tend to fluctuate during times of economic unease or instability, often driven by futures markets or other external forces.
Physical coins or bars offer the easiest and safest way to invest in silver. As tangible assets that you can hold in your hand and exchange back into money when needed, physical investments provide no counterparty risk or technology disaster risks that would cause losses online. You could also consider exchange-traded funds backed by physical gold and silver; some investors even purchase shares of mining companies to get exposure without keeping it themselves.
It’s a risky investment
Gold and silver are both precious metals that can be purchased as physical bullion in bars or coins, or traded through centralized exchanges as derivatives. Finding a trustworthy dealer to manage your account can help ensure hidden fees and markups don’t arise when investing.
Physical gold and silver investments are an excellent way to diversify your portfolio and mitigate risk. They tend to be less volatile than stocks or bonds and can maintain value during market downturns. Furthermore, these precious metals tend to be less susceptible to inflation, and have an inverse relationship with the US dollar.
Physical gold and silver investments are accessible via ETFs or bullion dealers, while SmartAsset provides an easy way to connect you with vetted financial advisors who can assist in building your portfolio. Take our free assessment test now to assess if you are ready to start!
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