Does Dave Ramsey Recommend Gold?
Dave Ramsey, an acclaimed financial guru, does not favor gold as an investment vehicle. Instead he advises his followers to save more and build wealth through savings rather than placing bets on riskier investments like gold.
He also believes that precious metals do not protect investors against inflation. But this perception is inaccurate.
It’s a Commodity
Gold has long held humans spellbound. Its allure led ancient Egyptian pharaohs to build grand tombs, the Aztec empire to hoard treasure, and eventually, California Gold Rush which attracted prospectors across America.
Gold has all the characteristics necessary to act as money and an asset that provides long-term storage of value, from malleability and durability. A single ounce can stretch to cover two to three Olympic swimming pools before remaining hard and durable.
Gold offers protection from economic collapse and inflation as a non-correlated asset, according to Bankrate. Portfolios with 2-to-10% allocation to gold have consistently produced superior risk-adjusted returns compared with those without one, as its inherent monetary value remains unaffected by market volatility – making it an excellent hedge for portfolios of any size and nature – including yours! Gold makes an ideal hedge investment and hedge against market fluctuations; hence why you should own some yourself.
It’s a Security
Gold can serve as an essential balance in multi-asset portfolios, helping to even out risk and return. Gold has traditionally been seen as an attractive investment as well as being sought out as a safe store of value.
Investors can invest in physical gold through coins and bullion bars or trade it as an asset through stocks, exchange-traded funds (ETFs) or futures contracts. When considering buying physical gold as an investment asset, remember its higher costs related to storage and insuring.
Dave Ramsey has become one of the country’s premier personal finance speakers through his self-made expertise in personal finances. An author, radio host and television personality who has helped millions get out of debt, build wealth and enhance their lives; yet not without criticism; some of his advice has been seen as misleading; particularly with respect to whole life insurance.
It’s a Good Investment
Gold makes an attractive investment due to its long history as an economic lifeline. Being the only asset backed by actual physical commodity and having been around for millennia as a universally acknowledged store of value makes gold an appealing option when building out a diverse portfolio.
Owinging physical gold has its risks. First and foremost, it must be stored safely either at home or in a bank vault – this may cost anywhere from $30-200 annually depending on where the safe deposit box is kept. Furthermore, its high price makes selling it difficult on fair market terms when needed.
Ultimately, whether or not gold investing is right for you depends on your goals and risk tolerance. If you want to lower the risks and add stability to your portfolio, considering adding a gold IRA might be an attractive investment option – to learn more, request your free information kit by clicking below!
It’s a Good Hedge
Gold has long been seen as an effective hedge against inflation. When prices spike due to high inflation rates, its price tends to increase while other assets like stocks and bonds tend to lose purchasing power.
Gold’s performance since then has been mixed, most evident during inflation-fueled oil price spikes of the 1970s. However, this trend was most evident at its height.
Gold prices exhibited a disappointing performance throughout 2021-2022 as inflation rates reached multi-decade highs; yet their value seemed to either stagnate or decline, casting some doubt upon its ability to act as an effective inflation hedge. This resulted in some doubts being cast upon its efficacy as such an investment tool.
Some believe gold’s weak correlation with inflation stems more from supply factors and market trends than from any actual relationship between inflation and gold prices over long time periods. Others, however, point out that gold often outperformed stocks in recessionary periods; suggesting it might make for an ideal addition to your portfolio during these difficult times.
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