Don’t Buy Gold…Sell It!

[tekhen]

Scream I'm debt free...YES!

but don't buy Gold and use what is a debt instrument?
Add the fact that he...
1) argues the gold/interest angle.
2) does not discuss the gold standard.

Dave... Dave... Dave


If you’ve listened to Dave Ramsey for a while, you’ve probably heard him say how horrible gold is as an investment. If you look at gold’s long-term track record, it’s hard to think any other way.

From 1833 to 2001, the compound annual growth rate of gold was only 1.54%. That’s pretty rotten. Since September 11, the value of gold has definitely increased. It’s looking better right now. But you can’t deny nearly two centuries of consistently poor performance.

Gold is the new Snuggie. You buy it off late-night cable and end up looking stupid. Everyone is talking about it, and everyone wants to get involved. But think about it. If you were going to invest in gold at all, would you really want to buy it at its 176-year high? Absolutely not!

So what’s gold good for—other than wearing it around your neck or wrist? Well, if you’re in debt—or if you just need a little extra cash—sell it!

Selling jewelry is a great way to build traction on your starter emergency fund, to knock out debt, and to clean up clutter around your house. If you’ve become gazelle intense, but you’re not quite ready to sell the kids, then peek inside the jewelry box. Do you really need everything in there—the trinkets, bracelets, rings and old watches?

Now, Dave isn’t endorsing gold as an investment. He never has, and he never will. Companies like Gold Stash for Cash offer an outlet for you to make some money on your unwanted or unneeded jewelry. Dave will only endorse companies that he trusts, and Gold Stash for Cash is reputable, honest and absolutely trustworthy.

http://www.daveramsey.com/article/dont%2Dbuy%2Dgold%2Dsell%2Dit/lifeandmoney%5Fother/text1/

[chad]

dave ramsey is to finance what alex jones is to the patriot movement. good for a jolting wake up call, but that's about it.

[iOWNme]

The true value is being manipulated, no doubt. As it hovers around $1100, i think the adjustment for inflation just from the 80's puts it closer to $2000 or so....

Even if it goes down to $400/oz. Dont you think you would be able to sell it for much more than that, merely based on supply and demand? Most people who want/buy/collect/invest in gold are more than happy to hand you a bunch of fiat paper in exchange for your commodity. Regardless if it is 'more' than the value says.

[mamboni]

To base any argument on extrapolation to the present gold price based on gold's performance during the period from 1833 to 2001 is totally specious. This guy Ramsey is all wet. The period from 1973 - present vis-a-vis gold versus the dollar is totally unprecendented. Over the last 9 years, gold has outperformed just about every other investment, including stocks and bonds. As for the future, the fundamentals of gold and silver are quite good. Can the same be said for the US dollar and the US economy? :oo-->

[Neuro]

I would imagine that gold was relatively stable in price during most of the centuries of the Roman empire, but by Jove was it good to have towards the end of it vs the Dinar...

[k-os]

dave ramsey is to finance what alex jones is to the patriot movement. good for a jolting wake up call, but that's about it.


Very well put, chad. Some people really need help up those first steps to stop being a slave. Dave helps them with that. Afterward, they'll need to continue their education elsewhere, and learn about real money.

[Ash_Williams]

I'd sell gold if I had debt. Debt will only grow. Get rid of the debt and be in a much better position to purchase gold.

[Twisted Titan]

I'd sell gold if I had debt. Debt will only grow. Get rid of the debt and be in a much better position to purchase gold.


Got one better:

Buy Gold at the same time as you are paying down debt.

If push ever comes to shove you can repudiate debt at the time and hour of your choosing.


If you try to pay off all debt first before buying gold you may have missed the chance to get it while it was still attainable.


Bill or no Bill

Debt or no Debt

Buy with both hands every chance you come across .

T

[big country]

I'll be honest. Dave Ramsey got me started and gave me the initial jolt. Reading Total Money Makeover taught me why debt was bad, when all I ever learned was that debt was good and necessary! Within a year of reading TMM I had sold our second car, after making extra payments on it, and got positive equity. With that equity I used it for a job move that got me a $8,000/yr raise and got me to a lower cost of living area.

I'm not ashamed to admit that Dave gave me the wake up call.

While we're admitting things here, I'll admit that Glenn Beck gave me to wake up call to gold too. He was pushing goldline which got me researching gold. I never called goldline, but bought from APMEX after finding GIM1 in my research.

Its been about 2 years now since I read TMM, I shed almost $20,000 in debt and I currently only have my Student Loans left ($10,000). I don't have a house yet, I'm 25. A house is the only thing I will go into debt for ever again.

While I don't agree with all of Dave's financial advice, He does a good thing. Anybody that wakes people up and gets them out of the debt system is good in my eyes!

[k-os]

Those are fantastic lessons to have mastered at your young age, big country! You should be very proud, regardless on how you started on this road, you're here now.

[Book]

To base any argument on extrapolation to the present gold price based on gold's performance during the period from 1833 to 2001 is totally specious.


Fourth (Gold) Soviet ruble, March 7, 1924 - 1947

A third redenomination in 1924 introduced the "gold" ruble at a value of 50,000 rubles of the previous issue. This reform also saw the ruble linked to the chervonets, at a value of 10 rubles. Coins began to be issued again in 1924, whilst paper money was issued in rubles for values below 10 rubles and in chervonets for higher denominations.
[edit] Fifth Soviet ruble, 1947 - 1961

Following World War II, the Soviet government implemented a confiscatory redenomination of the currency to reduce the amount of money in circulation. This only affected the paper money. Old rubles were revalued at one tenth of their face value.
[edit] Sixth Soviet ruble, 1961 - 1991
50 kopek type issued 1961-1991.

The 1961 redenomination was a repeat of the 1947 reform, with the same terms applying. Newly designed notes were issued with artwork by the artist Victor Tsigal depicting scenes from Soviet life and Soviet industrial achievements. The Soviet ruble of 1961 was formally equal to 0.987412 gram of gold, but the exchange for gold was never available to the general public. This ruble maintained parity with the Pound Sterling until the breakup of the Soviet Union in 1991 when the ruble became the new currency of the Russian Federation.

[big country]

Thanks k-os! I'll be honest, it's not easy. Especially at "my young age" as you put it because I do not have the earning power that I would have at an older age (atleast professionally) and I haven't had the years to build any wealth at all to shuffle around on the debt. (I can't have a yard sale to sell things to put more $$ on debt...I dont have any things!)

I read on here about people buying and selling 5oz of gold (or more) on a whim. Or buying this or that round just because it is pretty. I can't even imagine that yet. It took me over a year to "save" for my first 1oz of gold!! But I don't want to compare myself with the Joneses.

Basically what I'm saying is Dave Ramsey does good things for good people, even if he makes a fortune off of it himself! even though he is "in the system" when it comes to gold and stocks, he still does a good thing for ordinary people. I don't agree with his financial advice, but his DEBT ADVICE is rock solid.

[zusn]

To base any argument on extrapolation to the present gold price based on gold's performance during the period from 1833 to 2001 is totally specious. This guy Ramsey is all wet. The period from 1973 - present vis-a-vis gold versus the dollar is totally unprecendented. Over the last 9 years, gold has outperformed just about every other investment, including stocks and bonds. As for the future, the fundamentals of gold and silver are quite good. Can the same be said for the US dollar and the US economy? :oo-->
Yeah, but think of all of the people out there that bought gold in the early 1800's. I bet they're pissed right now!


A house is the only thing I will go into debt for ever again.You've come a long way BC. Please rethink going into debt for a house. Let the real estate events of the last few years be your guide. Sure a lot of people have been greedy and stupid and are getting what they deserve, but some people simply lost their job and now can't afford their mortgage anymore. Debt = Slavery. Search George Gordon's audio archives. Somewhere in there is the series on how to get a house. Worth a listen to before ever signing a mortgage document.

[Defender]

Well, this article certainly makes me feel better. I had been kind of depressed that I hadn't bought gold in 1833 and held it until 2001. But it's all good now.

[chad]

Thanks k-os! I'll be honest, it's not easy. Especially at "my young age" as you put it because I do not have the earning power that I would have at an older age (atleast professionally) and I haven't had the years to build any wealth at all to shuffle around on the debt. (I can't have a yard sale to sell things to put more $$ on debt...I dont have any things!)

I read on here about people buying and selling 5oz of gold (or more) on a whim. Or buying this or that round just because it is pretty. I can't even imagine that yet. It took me over a year to "save" for my first 1oz of gold!! But I don't want to compare myself with the Joneses.

Basically what I'm saying is Dave Ramsey does good things for good people, even if he makes a fortune off of it himself! even though he is "in the system" when it comes to gold and stocks, he still does a good thing for ordinary people. I don't agree with his financial advice, but his DEBT ADVICE is rock solid.


i was in a way worse spot than you at your age, and now i can buy 1 or 2 ounces of au a month without worrying about it. by the time you are my age, you'll be able to the same thing only probably outbuy me X2. good for you!

[big country]

Thanks k-os! I'll be honest, it's not easy. Especially at "my young age" as you put it because I do not have the earning power that I would have at an older age (atleast professionally) and I haven't had the years to build any wealth at all to shuffle around on the debt. (I can't have a yard sale to sell things to put more $$ on debt...I dont have any things!)

I read on here about people buying and selling 5oz of gold (or more) on a whim. Or buying this or that round just because it is pretty. I can't even imagine that yet. It took me over a year to "save" for my first 1oz of gold!! But I don't want to compare myself with the Joneses.

Basically what I'm saying is Dave Ramsey does good things for good people, even if he makes a fortune off of it himself! even though he is "in the system" when it comes to gold and stocks, he still does a good thing for ordinary people. I don't agree with his financial advice, but his DEBT ADVICE is rock solid.


i was in a way worse spot than you at your age, and now i can buy 1 or 2 ounces of au a month without worrying about it. by the time you are my age, you'll be able to the same thing only probably outbuy me X2. good for you!


Well I don't know how old you are, but I doubt I'll be making an EXTRA $50,000 per MONTH needed to afford 2 oz of au in 15 years...

[007]

Let's see, gold's long term record verses a government's long term ability to manage fiat and debt.

I'm all for fiat and debt until it doesn't work. Dave must not agree. Oh well.

[tekhen]

I think all will agree that being debt free should be the goal of all debtors.

fiat as well as gold has a value to it because man has placed it upon both. the FRN states "This note is legal tender for all debts, public and private"

am I not mistaken that cash (in this case the FRN) is a debt instrument?

Debt free... Dave you are correct.
Sell gold and exchange it for what you preach against... I humbly disagree

[1970 Silver Art]

I used to listen to Dave Ramsey. The only very good thing that I like about Dave Ramsey was that he was very good about how bad debt was and helping people get out of debt. I wish I listened to him when I was in my early 20's.

[1970 Silver Art]

I'll be honest. Dave Ramsey got me started and gave me the initial jolt. Reading Total Money Makeover taught me why debt was bad, when all I ever learned was that debt was good and necessary! Within a year of reading TMM I had sold our second car, after making extra payments on it, and got positive equity. With that equity I used it for a job move that got me a $8,000/yr raise and got me to a lower cost of living area.

I'm not ashamed to admit that Dave gave me the wake up call.

While we're admitting things here, I'll admit that Glenn Beck gave me to wake up call to gold too. He was pushing goldline which got me researching gold. I never called goldline, but bought from APMEX after finding GIM1 in my research.

Its been about 2 years now since I read TMM, I shed almost $20,000 in debt and I currently only have my Student Loans left ($10,000). I don't have a house yet, I'm 25. A house is the only thing I will go into debt for ever again.

While I don't agree with all of Dave's financial advice, He does a good thing. Anybody that wakes people up and gets them out of the debt system is good in my eyes!


Yeah I plan to become completely debt free in about 3 1/2 to 4 years from now. Once I become debt free, then I will feel very good about it. Most of my take-home income goes towards paying down debt and paying my basic monthly bills (rent, utilities, food, etc.). Whatever FRNs I have left over after paying down debt and paying bills, I will use those remaining FRNs to buy some silver (usually silver art bars) and to just go out and enjoy myself.

[007]

am I not mistaken that cash (in this case the FRN) is a debt instrument?

You are correct, cash is a note, a debt instrument.

[oldmansmith]

Bo, I'm sure pissed off that I bought all that gold in 1833. I could have invested in the best buggy whip company in the world and lost it all!

[Twisted Titan]

NUFF SAID ...........