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Gold is a Terrible Investment - According to Dave Ramsey

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Spamity Calamity:
At 1000+ an ounce I simply do not have that kind of spare cash to buy even an ounce of gold. Ive heard of of 1/5th of an ounce coins. I might be able to start there but for right now Im buying the much cheaper silver. In the short term (under 2 years) I think gold would be a bad buy because I expect the price to drop again. Long term I think it would be silly to not have at least some of your savings in gold.

dudekrtr:
What the gold "bugs" are saying is be careful, there may be a bit of a correction, but, soon after we're looking at $1200-$1600. The magic $1000 figure is now the floor. You won't see much of a retreat below that. That is bunch of bucks for an ounce of yellow metal, but, you will one day think that it was a bargain.

Silver isn't really a "safer" play, as it is actually a more volatile commodity, due to the variations in industrial demand. The real reason for going into silver is the price is so currently depressed, that the upside is nothing short of astonishing. Just look at the inflation-adjusted all time highs: gold: $2350 silver: $135 Yikes!

There is LESS silver available world-wide than gold (a billion ounces vs 2-3 billion ounces)  :o :o There are those who speak (albeit very softly, for fear of being branded too crazy) of price parity of the two metals. [my mortgage will get paid off that day!]

In two parts: http://news.silverseek.com/GoldIsMoney/1255044813.php and http://news.silverseek.com/GoldIsMoney/1254883767.php

http://news.silverseek.com/SilverSeek/1254150488.php

and this from a year ago:
http://dailyreckoning.com/a-bull-in-a-silver-shop/

Now, the real kicker: How can there be $110 billion of silver investments when the annual silver investment demand is $1 billion?    ??? ???
http://silverstockreport.com/2009/tiny-silver-II.html

Bottom line for Dave, I love the financial principles, the way he teaches them, everything. Great teacher; great investor. The problem is, he doesn't understand MONETARY POLICY, neither do the talking heads on mainstream media, and that's what this is all about. Our money is being taken to the cleaners, and the bankers, and the government are in it together. More money=more power=more money = more power.

Now, you can call this stuff tinfoil hat-like if you want, but the math is there. It HAS to happen, we just don't know when. I really hope Jack is right in his time frame, but I fear that the economy doesn't have the strength to withstand the pressure, so it might be sooner than later. One thing he may not be counting heavily enough is just that; how weak is our economy, really? How badly are the government numbers fudged? And, how badly does the rest of the world want to take us down?

ModernSurvival:

--- Quote from: dudekrtr on October 14, 2009, 06:50:54 PM ---There is LESS silver available world-wide than gold (a billion ounces vs 2-3 billion ounces)  :o :o There are those who speak (albeit very softly, for fear of being branded too crazy) of price parity of the two metals. [my mortgage will get paid off that day!]

--- End quote ---

Even with the discrepancy there is a strong corellation between the value of the two metals.



Interesting isn't it, notice how you never see them presented this way, I had to use my jedi MS paint skills  ;D to create this one.

dudekrtr:
And, since those charts ended, gold is 1064 [~12% up] and silver 17.92 [~20%up]

Hare of Caerbannog:
Adjusting my foil hat as I speak...

I think several governments are dumping their silver for paper right now in an attempt to support their currency.
I think this is holding silver down.
I strongly expect silver to suddenly correct and shoot to +30 or more.
At least I hope.

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