So, a buddy of mine asked me what I thought about an audio clip that Dave Ramsey posted about gold. Below is the response to my friend about the audio clip. I ask you to please listen to the audio clip first, then follow up with reading my response. I realize that my response kind of jumps around a bit, but I left it as I originally sent it to my friend. Dave Ramsey audio clip found here (click the ‘Play’ button at the bottom to listen to his response, the typed response cuts out a lot of his answer): Why Does Dave Diss Gold?
In my opinion, he rants about it but really never backs up WHY gold is a bad deal, bogus, or not a commodity. A simple look at the history of the world backs the view that gold and silver ALWAYS triumphs as the exchange standard. He says that gold is not REAL and that money is spiritual, however look at the faith that people have in the dollar now….declining sharply. “Gold is only as good to you as someone’s willingness to take that in payment”, is also true of the dollar. When the dollar is worth nothing, do you think they will take that as payment?? And that is not an ‘end times conspiracy’ belief, that is a fact backed up by the dollar being worth about .03 cents today. 97% of value has been eroded. His Katrina scenario was a temporary and localized NATURAL emergency….not a nation-wide FINANCIAL or CURRENCY crisis. He says, “The idea to return to the gold standard after a crash is bogus”. I guess history is wrong when it clearly shows that after EVERY fiat currency crash and during EVERY currency crisis people return to gold and silver. He also says that buying gold is only speculating in precious metals, but I venture to argue that buying stocks or bonds is only speculating in paper. He says gold has a 70 year track record of 4.2 percent, which is a little better than inflation. That is exactly what gold and silver claims, “HEDGE AGAINST INFLATION”!!!!!!! The dollar has a 97 year track record of 97% LOSS!!!!!!!!!!!!!! Tell me Dave, how is it that GOLD is a horrible investment?? He’s crazy to think that people won’t take gold in payment for something. Dude, look at where people’s faith is going….the price of gold is rising and the dollar is falling. Thats not to say that their won’t be ups and downs, but with things the way they are people’s faith is shifting and its shifting to where it has shifted throughout history…GOLD. It reminds me of the Israelites in the Bible….they always strayed from the path but when things got bad they always came back to God, what worked, and what they truly believed in.
Please leave your comments, I’d like to know how others feel about gold and silver as an investment.
- “Gold hits record, silver reaches 30-year peak” and related posts (khaleejtimes.com)