What does Dave Ramsey say about buying gold?

While Dave Ramsey’s financial advice has garnered a significant following, his skepticism towards investing in gold warrants a closer examination. While Ramsey’s perspective is grounded in his conservative principles, there are valid arguments that challenge his stance on buying gold. In this article, we will explore the other side of the debate and present reasons why investing in gold might hold value for certain investors.

Diversification Beyond Traditional Assets

One of the key arguments in favor of buying gold is the role it plays in diversification. Gold has historically demonstrated a low correlation with traditional assets like stocks and bonds. This means that during times of economic downturn or stock market volatility, gold has the potential to act as a hedge, helping to protect a portfolio from severe losses. Diversification across different asset classes, including gold, can enhance a portfolio’s resilience against market fluctuations.

Inflation Hedge and Preserving Value

Gold’s historical reputation as a hedge against inflation is another compelling reason to consider its inclusion in an investment strategy. Unlike paper currency, which can lose value over time due to inflation, gold’s value tends to rise when inflation is on the rise. This characteristic can help investors preserve their purchasing power and maintain the real value of their investments, especially during times of economic uncertainty.

Global Economic and Geopolitical Factors

Gold’s value is often influenced by global economic and geopolitical factors. During times of political turmoil, market instability, or currency fluctuations, gold has historically served as a safe haven asset. This attribute can make gold an appealing option for investors seeking to mitigate risks associated with uncertain global events that could impact traditional investments.

Tangible Asset with Historical Significance

Unlike stocks or bonds, gold is a tangible asset with intrinsic value that transcends financial markets. It has been a store of value for centuries, prized for its beauty, rarity, and universal acceptance. This historical significance can attract individuals who appreciate the physical ownership of assets and value the cultural and historical connections associated with gold.

Opportunity for Capital Appreciation

While Dave Ramsey raises concerns about gold’s lack of cash flow, proponents of gold investing argue that its potential for capital appreciation cannot be overlooked. Over the years, the price of gold has experienced significant increases, making it a lucrative investment for those who can accurately time their purchases and sales. While the market for gold can be volatile, informed investors can capitalize on price fluctuations to generate returns.


While Dave Ramsey’s financial advice carries weight and resonates with many individuals seeking stability and financial security, it’s important to acknowledge that there are valid counterarguments to his perspective on buying gold. Diversification, inflation hedging, historical significance, and potential for capital appreciation are factors that can make gold a worthwhile consideration for certain investors. As with any investment decision, it’s crucial for individuals to conduct thorough research, assess their risk tolerance, and align their choices with their financial goals. While Ramsey’s focus on income-generating assets is sound, a well-informed and balanced approach may include a carefully measured allocation to gold within a diversified portfolio.