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View Full Version : Don’t Buy Gold…Sell It! To pay off your Debt



osoab
21st April 2011, 05:06 PM
I was listening to Dave Ramsey briefly. I caught him hawing this site called Gold Stash™ (http://www.goldstash.com/). This is the first time I had heard him doing a promo for selling your gold to get out of debt.


This is an article by Mr. Ramsey from 2009 (http://www.daveramsey.com/article/dont-buy-gold-sell-it/lifeandmoney_other/).


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 GoldStash.com 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 is reputable, honest and absolutely trustworthy.

Speaking of trustworthy, do you ever worry about sending your valuables through the mail? GoldStash.com has made it easier than ever with their customer-friendly mailing process. Through a partnership with FedEx, GoldStash.com will insure your package up to $1,000 and provide package tracking from the time you drop it off. On top of that, GoldStash.com processes most orders in just 24hrs. Now, thats a way to attack an emergency fund!

So if you’re interested, visit the GoldStash.com website, and contact them about selling your old jewelry. This is just another creative way you can gain momentum on the road to financial peace.

Interesting comments at the article. A few disagree with Dave on the need for Au and Ag.

How many here think people should dump their PM's to get out of debt or to knock a big chunk out of it? It doesn't make too much sense to me to dump at this time. There are way too many shenanigans going on.

Jazkal
21st April 2011, 07:10 PM
IMO, Dave is an idiot on anything but his mantra to get out of debt. His 'Debt Snowball' isn't even his, he just has built the biggest audience.

Ponce
21st April 2011, 07:39 PM
Well, according to what I paid for my silver and today's price ........and........if I were to pay with silver oz my cost per gallon would be of about 0.46 cents hahahahaahahahahah.......I could fill my tank for about five bucks.

Antonio
21st April 2011, 07:48 PM
These companies like cash4gold pay something like 50% of scrap value, so Dave is welcome to sell me his unwanted gold for 50% under melt anytime. I`ll go into debt and max out my CC in order to buy all of the gold he wants to sell to me.
PS.This guy is not stupid, he is simply a monumental whore, people who offer such financial advice need to be ass-raped with a broken bottle.

gunDriller
22nd April 2011, 06:12 AM
as long as you can afford to service your debt ... for the duration of the loan - what's wrong with borrowing in 2011 dollars and repaying in 2021 or 2031 $ ?

JJ.G0ldD0t
22nd April 2011, 06:16 AM
as long as you can afford to service your debt ... for the duration of the loan - what's wrong with borrowing in 2011 dollars and repaying in 2021 or 2031 $ ?


I can't go with that. Debt is slavery.


no offense.

ShortJohnSilver
22nd April 2011, 06:45 AM
This is the problem with Dave - he doesn't look behind the curtain to see what is going on - it is as if you had a guy who was telling you to follow the Great Oz and not make him angry - all the while there are people looking at the guy behind the curtain and Dave keeps telling them to shut up.

Ares
22nd April 2011, 06:59 AM
This is the problem with Dave - he doesn't look behind the curtain to see what is going on - it is as if you had a guy who was telling you to follow the Great Oz and not make him angry - all the while there are people looking at the guy behind the curtain and Dave keeps telling them to shut up.


QFT,

My sister-in-law and brother-in-law follow this guy. I've spent months trying to deprogram them from this guys investment advice. I had to point out that with inflation eating away at all investments (I do not consider gold and silver investments but a hedge against inflation) then there isn't a point in purchasing mutual funds you are still losing money when compared to REAL inflation. Not the crap CPI the government puts out.

They finally agreed and are at least putting some into silver and gold as a hedge against inflation.

mamboni
22nd April 2011, 07:11 AM
Ramsey quotes gold per annum appreciation at 1.54% during a century of gold standard currencies and insinuates bad performance? Well, a fair comparison would be the last century and the dollar standard, no? Given that today's dollar has about the purchasing power of $.05 in the 1913 dollar, over this period the per annum depreciation of the the dollar has averaged -3%. So to be fair, is Ramsey critical of the dollar? :oo-->

wrs
22nd April 2011, 07:23 AM
Dave is a dumbass and a liar. First of all, don't do debt and you won't need his advice. So Dave is preaching to dumbasses, not unlike preachers in a church on Sunday. The people in the pew wouldn't be there if they really thought about their beliefs and going into debt is a false belief in prosperity now instead of saving for later. The church crap is the opposite, it's a justification for unhappiness now for pie in the sky later. No different and they still take your money for giving you the uplifting messages every Sunday.

What Dave doesn't seem to notice is that 176 years ago, a dollar was gold and the debasement of the currency is the reason that gold is rising. Debasement of the currency isn't going to stop, lying to people in order to get their money isn't going to stop, not in churches and not in commerce or politics.

SLV^GLD
22nd April 2011, 08:02 AM
About 7 months ago I had to decide whether or not to take a small loan to supplement a cash buy on an automobile or sell some metal for the same amount. I opted for the bank loan under the supposition that I would be unable to replace the metal for the same dollars or less. In other words, I could take a loan from my metal and pay "interest" that was a function of the rise in replacement costs or I could take a bank loan and pay the fixed interest applied at origination. Having watched the metal prices skyrocket has shown me I was much smarter to take a bank loan than to take a loan against my metal holdings. The amount of interest I will have paid on the bank loan would have not come anywhere near replacing the amount of metal required to produce the cash needed 7 months ago. BTW, it was a 36 month bank loan that I will have paid off in about 10 months total (3 months remaining).