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This guy is going to regret his life in 15 years

102 Comments- Get free updates of new posts here

5 1

Sigh. An email I got recently.

Vito writes:

“Love your name btw. Just ram it! lol. My investment strategy is non complicated. I invest everything I have in gold and silver. 75% silver and 25% gold. Simple and effective and no need to read any books. It’s doing very well. Nobody I know has the slightest clue what’s going on. They think gold and silver is gambling or it’s too risky. LOL. Fucking illiterates. Nobody taught them shit. They trusted their politicians and bankers. They deserve what is coming. Nobody wants to hear about gold and silver. Little do they know when the dollar collapses they’re all going to get rammed up the ass and I’m going to be skating away smelling like a rose with all my money and more. I don’t bother with equities either. They’re a rip job. Investors today are fucking stupid. They react to all the talk in the media and forget about the fundamentals of gold and silver and actually sell it. That is where I enter the scene and buy, knowing full well it’s got one way to go but up, like the national debt of all western economies. Thank God for fucking stupid people!”

My response:

“probably not the best strategy for the long term.”

Vito writes:

“Gold and silver is not the best strategy for the long term? Why, if you don’t mind my asking?”

My response:

“It severely underperforms other investments over the long term. This is why you need to read a couple books on personal finance — at a minimum. What is performing really well today likely won’t perform well over the long term. I cover this in my book or there are many, many other books/free articles online.”

[We go back and forth a few times and I encourage him to read some books to dig up the data himself…]

He responds:

“Well Ramit, you can keep your data. How can a best selling financial author give out this sort of nonsense for advice? What do you think, I’m some sort of dummy? Check out the data on the debt in the US and Europe. Do you even know how high it is? And the banks, do you have any data on how much toxic debt they’re carrying in worthless OTC derivatives? Anybody that follows you blindly into equities I can unequivocally guarantee will be in for a religious experience and a world of hurt. Long term equities will destroy you.”

“You can keep your data.” Ok, I think I will.

I rarely blame people alone for their lack of financial knowledge, as there are many groups to blame — schools, companies, and Wall Street — but this guy is actively proud of not reading even one book.

As with most people, education alone is not the answer to change his behavior, as he will never allow himself to be subjected to education.

It’s interesting: People complain about their finances for nearly their entire lives — without ever reading one good personal finance book.

Yet when you collect the data, you find predictable patterns.

  • In their 30s, they wish they saved more to travel in their 20s.
  • In their 40s, they wish they’d saved more for a down payment in their 30s.
  • And in their 50s, they wish they’d saved for one simple thing in their 40s: retirement.

Each of these groups could have done so in a period of a few weeks — then let their system automatically work for them.

But it’s easier to make doomsday predictions about the world, concoct macro-economic theories, and call other people “fucking stupid.”

* * *

Interesting reading…

1) Read more rants about dumb people.

2) I’m working on something special right now. If you’re interested in saving money on your biggest expense, I’d like to ask you about it: http://www.surveymonkey.com/s/ZBJQCDL

5 1

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102 Comments

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102 Comments on "This guy is going to regret his life in 15 years"

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Steve
Steve
5 years 2 months ago

I’d like to take the survey but the link provided sends me to the ‘thank you for taking this survey’ page…

Steve
Steve
5 years 2 months ago
Have to go with the other guy on this one Ramit. Your investment strategy advice is predicated on the assumption that the stock market will , on average, continue to perform as it has over the last 30 years. It clearly has not since 2008, and, clearly, will not in the immediate future. When he said keep your data, he meant that this historical data will NOT help you analyze whats GOING to happen given that we are in a season where the financial markets are not, and cannot behave like they have in the past. The past, in the… Read more »
Paul
Paul
5 years 2 months ago
The one thing I agree with is that the past is not a guarantee of the future. On the other hand, history tends to repeat itself. As The Black Swan author asserts, certain “improbable” events happen with regularly. Therefore, history is indeed a valid indicator of the future, as many black swan events have already happened and are represented by historic data. To take this one step further, while no two catastrophic events are the same, the players are always present: human beings, companies and governments. These parties tend to react predictably and irrationally, with governments with knee-jerk legislation, people… Read more »
Tyler F
Tyler F
5 years 2 months ago
One quote I think is interesting: “Your investment strategy advice is predicated on the assumption that the stock market will , on average, continue to perform as it has over the last 30 years. It clearly has not since 2008, and, clearly, will not in the immediate future.” So, Ramit is assuming that the stock market will average what it has the past 30 years, based on 30+ years of data. You’re assuming the stock market will not perform like it has the past 30 years based on 3 years of data. Who is making the bigger assumption? Additionally, your… Read more »
Pey
Pey
5 years 2 months ago

Worse. Advice. Ever.

Please don’t call me for a loan in 30 years.

king james bible
9 months 26 days ago

Yeah you said bestselling author that doesn’t mean s*** how about super successful investor. Your advice is pretty much worthless I’ll stick with thousands of years of a trend.

Jeffrey Trull
5 years 2 months ago

I love how you can tell they have no idea what’s going on when they simply throw buzzwords and talking points out there. But I feel really badly for people like this, and I hope that this guy smartens up.

Stefan
Stefan
5 years 2 months ago

Is gold/silver really the most _needed_ material that will be in limited supply in for instance 30-40 years? Are we even sure they will be demanded enough that gold/silver value will increase?

Remenber, historical data is apparently of no use here…

Tyler F
Tyler F
5 years 2 months ago

Historical data is old garbage when I want to refute someone, but valid when it supports my decision!

Nicoke
Nicoke
10 months 9 days ago

Even if it does not increase, it cannot decrease!! Unlike paper money….just keep on printing .

Jim
Jim
5 years 2 months ago

You probably got identical e-mails 5-6 years ago from people talking about how housing and real estate are no-brainers. And if you were blogging 12-13 years ago you’d hear how tech stocks were no-brainers. All of these bubbles are the most fun on the way up.

Carlita
Carlita
5 years 2 months ago

This kind of personality is very difficult for me to take as well. You really can’t discuss anything much except the weather with this guy, because he will have the same ridgid attitude about everything from politics to the best way to swing a golf club. There is never any conversation with these guys because any kind of conversation or communication involves listening with an open mind an heart. This guy can’t do that.

Lukas
Lukas
5 years 2 months ago

One glaring problem with the assumptions that Vito makes is

“Little do they know when the dollar collapses they’re all going to get rammed up the ass and I’m going to be skating away smelling like a rose with all my money and more.”

If the dollar collapses then what “money” is he planning skating away with?

Historically, when an economic system collapses then society reverts to a bartering system of goods and services. Basic living necessities will far outweigh the need for precious metals.

Kaitlin
Kaitlin
5 years 2 months ago

Precisely. I always wonder about this when I hear people’s doomsday predictions for the collapse of the dollar. If the economy completely collapses, it seems like food, water and fuel will be far hotter commodities than gold and silver bars.

Steve
Steve
5 years 2 months ago
Only the dollar is collapsing, other currencies *might* do just fine without a dollar. Essentially, the point behind going to gold/silver is not investment, it is risk mitigation. You know you are going to be skinned when whatever currency you have disappears so you buy something (gold/silver) that you can use to buy the new currency that takes it’s place. Its also important to note that that there is an intermediate step between currencies collapsing and going to bartering which is using a “universally” standard currency – typically gold or silver. Since you actually own the metal (which means you… Read more »
Diasdiem
Diasdiem
5 years 2 months ago

Seriously. If the dollar collapses, I have a feeling you won’t want to have invested in gold. You’ll want to have invested in canned food and ammunition.

Kyle
Kyle
5 years 2 months ago
Aside from hoarding precious metals, I’m sure he’s planning on relocating once inflation gets out of control. As a like-minded investor, I’m planning on hopefully converting my gold/silver to Canadian Dollars, Brazilian Reals, Swiss Francs, or maybe an Asian currency. With the recent boom in gold/silver, it’s pretty easy to turn bullion into currency. And if worst comes to worst, and we do end up bartering for goods and services, then gold/silver will be KING. The stock market is a fixed game. Long-term investing is dead. If you want to educated yourself, read books of value by economists such as… Read more »
RyanB
RyanB
5 years 2 months ago
I’m sympathetic to the other guy as well. But I wouldn’t recommend putting ALL of your money in gold/silver. As Steve said, it’s a hedge and not an investment. Speaking of predictable patterns, almost all of the currencies the world has seen are now worthless, except precious metals. You can’t always rely on the past as an indicator. Diamonds have always been extremely valuable, but then something revolutionary happens (like the ability to manufacture diamonds) and suddenly their value is dictated by a different set of variables. Likewise, the dollar will be fine . . . until it crashes. The… Read more »
mikeh
mikeh
5 years 2 months ago
Clearly Vito is making a mistake by not understanding the arguments of a wide range of financial advice. (also, Vito, if you read this, I would strongly recommend reading fofoa, ie http://fofoa.blogspot.com/2010/12/focal-point-gold.html and http://fofoa.blogspot.com/2011/04/deflation-or-hyperinflation.html). Sorry, but how can you compare ~100 years of dollar denominated stock market growth with 6000 years of gold’s storage of value ? And argue that the stock market is clearly better ? The long run value of any fiat is zero; this has been proven time and again. The only question is if we will see the dollar’s long run in our lifetime (my bet… Read more »
Alex | Perfecting Dad
5 years 2 months ago
So I think that guy might have a point. He’s investing in things, has a system, and taking action. That’s a lot better than most people who are paralyzed. When he loses his shirt then he’ll have some real experience instead of just data, and he’ll know better next time. I agree with you Ramit, study and understand, but far more important to act even if you lose a bit of money or time. I did a case study on myself because my friend pissed me off by asking me for stock tips when he actually already knew everything I… Read more »
Justin
5 years 2 months ago

Alex- I would even argue that one doesn’t have knowledge without accomplishments. Until they do have accomplishments, they just have information. The ability to take information and act with it produces proof of knowledge, or accomplishments. I wrote an article sharing an experience with my 3 year old about this topic: http://wealthhabit.com/blog/3-levels-of-learning.

Jacob @ My Personal Finance Journey

Wow! Sorry you had to put up with that little attack Ramit! I have read your book and thought it was very good! I think some people really just won’t ever understand.

Philip
Philip
5 years 2 months ago
I am going with option 3…but I must say I am surprised the author of this site is so reluctant to accept that gold/silver can be a valid investment going forward. Frankly, I am shocked. Yea, its easy to regurgitate the lines..”put your money here and here and you will do fine”. Or “read these books and you will do fine” How bout the folks who put their money 10 years ago into the market…where are they now? Right where they started if they are lucky. And the neighbors who put their money in gold at the same time?? I… Read more »
Steve O
Steve O
5 years 2 months ago

Try this one:

Do you think you know more than Chase, Goldman Sachs, the United States, or China?

There is no way these idiots who have never read a book know something that the Fed doesn’t. Markets are efficient, and unless you have an edge in technology or research you’re not going to outsmart the millions of other investors and get a “great deal” on gold or silver or international funds or junk bonds or whatever.

matt
5 years 2 months ago

steve, I’m not sure where you’ve been investing, but my 401k and roth IRA are doing quite well this year. 401k 17.8% last year 6% so far this year. 12.3 and 7.2 for my Roth. To be honest, I’d rather not have these high gains now and be able to purchase more shares since I’m 40 years away from retirement, but I won’t compain.

K.B.
K.B.
5 years 2 months ago
::sigh:: This is why I stopped participating in online financial discussion boards and took down a blog about my personal finances long ago. Too many guys — and somehow it’s mostly guys — who KNOW the ONLY RIGHT way to invest, and anyone who does anything else is crazy, ignorant, and stupid and must be attacked RIGHT NOW. So now I just quietly read the best blogs and books, ponder and test the information, and do what I can, when I can, as best I can, to invest and save. I’m not perfect, and I’m not terribly consistent, but if… Read more »
rackgen
rackgen
5 years 2 months ago

All, this is a PF blog.. the idea is to put more into yourself, thinking and asking questions and challenge one’s assumptions using books and tools ramit shares. If you have noticed, ramit’s bookmarks NEVER talk about returns but the self improvement. Remember this:

– Never put all your eggs in one basket
– Diversify using proper asset allocation strategies
– Learn voraciously from various sources.

For things about comparing precious metals [PM] vs equities vs bonds, there are tons of boards out in the ‘net!

DanP
5 years 2 months ago
Man o man, i feel like i’ve met this person before. I’m in wealth management and it’s ridiculous how many ppl have knocked on my door in the past 6 months and say “how can i buy gold?” When i tell them not to buy it, or that if we were, i’d only be a small part of a largely diversified, they get upset and never know why. Then they proceed to tell me some jackass on a news show told them gold was going to 3500 dollars. Stupid ppl with access to news is a scary thing.
Stefan
Stefan
5 years 2 months ago

Seriously, if you’re buying gold/silver because the economical system might collapse, by rice, land, fabric etc, or even oil if you’re a dare-devil.

Kevin G.
Kevin G.
5 years 2 months ago
Although the crude language and image of Vito here does not represent the majority of intelligent precious metal investors, I would have to agree with Vito’s general position here; even if it’s not advisable to invest everything in one basket. Advocates and investors of gold include Jim Rogers, China’s and India’s Central Bank, John Paulson, Peter Schiff, Marc Faber, Doug Casey, David Einhorn, the Univ. of Texas Endowment Fund, Richard Russell, George Soros: Google some of these names if you aren’t familiar. These folks have solid credentials and funds like China’s central banks and these hedge funds have more money… Read more »
Stefan
Stefan
5 years 2 months ago

Kevin G, but why is gold better than for instance land?

Paul
Paul
1 year 6 days ago

I think a lot of investors choose Gold/silver over land is because of the cost difference. I can get a Silver Eagle for $20 dollars vs. an acre of land for 20k.

Kevin G.
Kevin G.
5 years 2 months ago

Stefan, no one said one was better than the other. They are BOTH important to own.

Stefan
Stefan
5 years 2 months ago

Well, if you actually believe in an economical collapse, you should probably just loan as much money as you possibly can, and buy _useful_ resources for it. When the banks go under, you’ll win. Unless you loose all your resources.

Patty
Patty
5 years 2 months ago

Acctually, that’s not really true. When the banks go under, they’ll just get bailled out again, and then take the resources you borrowed from them to get.

Tim Rosanelli
5 years 2 months ago

Your dumb people rant articles are always my favorite. Nothing like listen to stupid people and realizing life’s pretty good.

Michael
Michael
5 years 2 months ago
Seems to me, if you want to be really prepared for when the economy collapses (or the bomb drops or come the revolution or 2012 or pick-your-disaster-scenario), the right place to put all your money is in guns and a big stockpile of food and water. Not much of a hedge against inflation, but since there won’t be a government or an economy (at least not one bigger than where you can walk in half a day), inflation won’t matter. Gold has always been pretty, and somewhat rare, so people have given it a value which it doesn’t have, intrinsically,… Read more »
Stefan
Stefan
5 years 2 months ago

Michael: Land you can farm, weapons, food, water. Agreed.

Or live like the apocalypse isn’t around the corner. A matter of lifestyle I guess.

Philip
Philip
5 years 2 months ago
Again I think folks (including the author of this website) are confused. It does not need to be “all or nothing”. Gold, and to a lesser extent silver, serve as currencies. In the same way the dollar, the yen, pound, etc, serve as currencies. Used to be all currencies were tied to gold…but that changed not too long ago. Now all currencies with the exception of gold are fiat…meaning that they can be created at will. If you follow what our current monetary policy is, you would know we are doing a lot of that now. Now, unless you are… Read more »
Paul
Paul
5 years 2 months ago
Nice post, Ramit. Reminds me of the bookmarks you have on psychology related to how people’s inherent beliefs corrupt their ability to take in real facts that conflict with what they already think. I have a lot of people come to me at my office asking for my opinion on certain stocks that are “sure to gain so much money this year!”, but when I tell them that it doesn’t matter how much they gain this year since they’re investing for retirement/long-term goals, they give me a blank stare or try to rationalize. Educate those willing to learn, cut your… Read more »
Peter | Drupal Video Tutorials
5 years 2 months ago
Fundamentally, I find it mind boggling how anyone can argue with diversification, in investing, income production, etc. I’m surprised you actually wrote back – I think I would have deleted the email after the first sentence. On another note, good to see some focus on your SEO strategy with in page anchoring. However, to drive more traffic, you could make more effective use of your page titles (huge for SEO) and meta descriptions — often relied on by search engines for the blurbs when your site is listed. Your description for this page is “Sigh. An email I got recently.… Read more »
Lindsay
Lindsay
5 years 2 months ago
“Thank God for fucking stupid people!” Oh, the irony! As I was selling my gold to an end user (a jeweler), I felt bad for them that their regular supply prices are so outrageous. But I wish I had sold my gold to this guy! I hate to sound like him, but with his mean-spirited attitude towards people he thinks are less knowledgeable than himself, I have to admit I take pleasure in knowing that he’s going to be royally screwed when the bubble bursts. No, I still actually feel sorry for him. He will lost so much hard-earned money.… Read more »
Angela
Angela
5 years 2 months ago

FYI- J.D. Roth at Get Rich Slowly did a post about gold today.

Justin @ MoneyIsTheRoot
5 years 2 months ago

I’m really tired of the doomsday approach to investing, and the advice that comes with it. So many people are convinced that you need to have all cash, or commodities, and think little about the stock market anymore. Mutual funds, and dividend paying stock, etc.. are still very viable sources of investment. If we have meltdown of all the financial markets, and the world goes under, I doubt many people are going to care about a bar of gold at that point either.

Lindsay
Lindsay
5 years 2 months ago
Phillip, how is gold not fiat value? It seems that it’s worth whatever people decide it’s worth. Even for something that has intrinsic value such as a home or property, a drastic, unusually fast increase on prices is the sign of a bubble. Reading books on finance will teach you the basic investment strategy of “buy low, sell high” and about the concept and history of economic bubbles. People instinctively feel that now is a bad time to buy a house and a good time to buy gold, because home sales are doing so poorly and gold is selling for… Read more »
Mike S
Mike S
5 years 2 months ago
Personal tolerance for risk is the indicator needed to invest in any source of investment you make. Exit from the investment is about the only thing that matters as you will either have realized gains or loss at that point. I am sure if you ask around we can find someone whom we personally know that got clobbered in their 401k just at their retirement, or someone who lost in real estate, or gold or whatever. And also people who benefited from it. Seems to me most of the time people calculate their unrealized gains as actual gains to gauge… Read more »
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[…] Live: Gold may glitter, but as an investment, it carries perilI Will Teach You to Be Rich: This guy is going to regret his life in 15 yearsAAII Journal: Gold’s investment attributes (membership required)Crawling Road: Gold ownership […]

Philip
Philip
5 years 2 months ago
Lindsay GREAT question how is gold not fiat value? Seriously…this is the way to analyze the investment (or, lets use proper terms, currency). How is it valued? Why is gold worth more than paper? Or is it? You can not eat gold…can not burn it to gain heat (and paper can serve both purposes) First, lets address fiat. Fiat means “by order”…something that is fiat is created by order or proclamation. That defines all sovereign currencies today. And the value of the currency is determined by the market. Today, for example, one dollar will purchase 1/1,500 oz of gold, or… Read more »
PDamian
PDamian
5 years 2 months ago
Well, speaking as a 47-year-old woman who said many times in her 20s that she would NOT marry and have children, and as a woman who has held to that decision and has no regrets … I *still* wish I’d saved for the big wedding and/or the kiddies. If I’d had that kind of cash in hand, I could have helped my wonderful nephews with their college tuition, or helped my mom with medical expenses (I do, but I wish I could do more). If nothing else, I’d have a nice, supplementary nest egg to complement my present nest egg.… Read more »
Lindsay
Lindsay
5 years 2 months ago
Philip said: “How bout the folks who put their money 10 years ago into the market…where are they now? Right where they started if they are lucky. And the neighbors who put their money in gold at the same time??” These are very good points, and I agree with them. But I reach a different conclusion – 10 years ago was a great time to invest in gold, because gold was cheap. Therefore, now is a terrible time to invest in gold, because its value is so high. Regarding the other thing – I have always been wary and resentful… Read more »
Stefan
Stefan
5 years 2 months ago

Actually, the ones who put their money in an index fund 10 years ago are probably not screwed in any way. But 10 years isn’t really that long of a term either.

http://stockcharts.com/charts/historical/djia1900.html

BarbaraB
BarbaraB
5 years 2 months ago

There’s a reason for the old saw: “Experience is the best teacher.” Gold and silver are in a bubble right now. They’ll go down again just like they have in the past. Gold hit a high of $850 in 1980. 2 years later it hit a low of $296.75. It didn’t go above $800 again until 2007.

Historical prices from http://www.onlygold.com/tutorialpages/picessince1972fs.htm

Philip
Philip
5 years 2 months ago
Barbara I would argue the dynamics today are FAR different than in 1979. One of the reasons, if not the reason for the “bubble” in gold was the end of bretton woods. That lead to the drop in the value of the dollar (priced in gold) and increase in the value of gold (priced in dollars). Paul Volker was able to curb the inflation (and there was inflation) with a very high interest rate. Think that will happen again? Its good to understand why things happen…not just repeat what the folks in print and TV say. I certainly am not… Read more »
mikef
mikef
5 years 2 months ago
The fact is, nobody knows whether gold will go up or down today, tomorrow, or 15 years from now. Time and time again studies have shown you cannot time the market. I believe this blog is targeted to the beginning to average investor and thus gold as an investment may be too risky from that standpoint. For me, Ive been heavily in a gold position since 2005 (>50% of total portfolio). It has worked out, but my risk tolerance is very high and Im young with a desire to chase high returns. Im slowly pulling some of my chips off… Read more »
Jackowick
Jackowick
5 years 2 months ago
Sadly, many people really do think that the current market is somehow the end of days, with zero perspective on how BADLY the 1970s ended (we’re not waiting in line for gas and having Russian nukes to fear, oh and they had just as much fear from terrorism as we did, all this to go with the unemployment), and people focus on very short term ideas. Ignoring history is the wrong thing to do, period. Quoting the Black Swan, while that’s a cute little “look I’m learned” trick that may impress a teacher in college, is still missing the point… Read more »
Matt Polinski
Matt Polinski
5 years 2 months ago
I 100% agree with the “other guy’s” underlying theory, although he doesn’t present his ideas as elegantly as you do. I recently reduced my 401k investment from 6% to 2%, and with the surplus of 4% I invest in precious metals. I invest as little of my “money” into the stock market. After Nixon made the change to our monetary system in the 70’s money is now just currency, and I don’t plan on investing in the stock market. After all, every fiat currency in the history of the world has failed. I am not sure what keeps Americans believing… Read more »
Stefan
Stefan
5 years 2 months ago

Matt, just out of curiosity: When the economical system collapses, what do you plan to do with the metal you’ve purchased? And also, where are you storing it? Somewhere safe that you have actual physical access to even if a domestic war starts?

Philip
Philip
5 years 2 months ago
Its worth noting that holding gold does not necessarily imply collapse. Consider the Deutsche Mark…it went through several periods of very serious stress (after 2 wars) yet emerged strong. My point is that the dollar may not “collapse” to the extent that we have fighting in the streets. Frankly, I personally doubt this will happen. But if, say, the dollar falls another 10% or 20% ? If that happens how do you plan to protect what wealth you currently have? As for the 70’s? I was around in the 70’s…that was bad…this is different. Not saying better or worse but… Read more »
Stefan
Stefan
5 years 2 months ago

Yes, but if you’re talking about “short term” “collapses” that would be devastating to you, you shouldn’t buy gold OR stocks.

If you’re in it for the long term, the short term “collapses” are of no concern.

Philip
Philip
5 years 2 months ago
You say Yes, but if you’re talking about “short term” “collapses” that would be devastating to you, you shouldn’t buy gold OR stocks. If you’re in it for the long term, the short term “collapses” are of no concern. I disagree. If you believe (I believe) gold serves as a currency, the holding gold can help hedge a collapse either short or long term. I do agree that if you are worried about collapse you should not by stocks…but that assumes a deflationary collapse, as opposed to a hyper inflationary (like what happened to Germany in the early 20’s). IN… Read more »
Angela
Angela
5 years 2 months ago

Well at least he doesn’t have all his eggs in ONE basket. Gold and silver counts as two, right?

Haha

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[…] Great example of reinvesting in your blog: I Will Teach You to Be Rich […]

gunar
5 years 2 months ago

discussion about investment is always interesting

CJ
CJ
5 years 2 months ago
Even though gold seems to be the focus, and is certainly the high value item… he has 75% of his money in silver. Just me who thinks that’s a lot? Maybe it’s because I have family who deal in silver and gold but I find silver more volatile in its prices over the short term than gold, so 75% is a lot of faith in a metal that dropped $14 an ounce in a week (about 30% of its value)…. That being said I remember when it was only $11 an ounce a few years ago so maybe he’s on… Read more »
Al
Al
5 years 2 months ago

this guy is not normal, you can see in his first question how he is so exited and probably he heard that theory of his father or something, he is probably also a teenager/ or didnt devolop from this period
Ramit, you are doing a good work not blaming him or going into stupid talk, thanks for all the good info
keep up the good work

Paul
5 years 2 months ago

I wonder where he buys his gold from because when you buy it from gold selling corporations it seems like you get ripped off hardcore. Anthony Weiner tore apart Glen Beck and Goldline over that issue: http://www.youtube.com/watch?v=P6tmf33UDF8

Eric
Eric
5 years 2 months ago

SLV and GLD have outperformed the SPY. I think they are a good part as a *portion* of your portfolio. Of course not a majority. And don’t get SLV unless you want to swing trade. Too hot as an investment. But I don’t think it is fair to say that they severely underperform, GLD slightly outperforms SPY on a ten year chart, and SLV beats it.

Paula @ AffordAnything.org
5 years 2 months ago

How funny that this post came just days after silver plummeted 22%

Bret
Bret
5 years 2 months ago
Eric
Eric
5 years 2 months ago

I’m fully aware SLV has plummeted. But the fact remains it has still outperformed SPY on all my charts from three months to ten years.

I did mention as well that it is too hot to play as an investment!

MS
MS
5 years 2 months ago

Sounds like a friend I know. He bases his information on sensational “news” finance articles and has EVERYTHING invested in gold and silver. And he keeps it in his house. Not in a safe, just a cloth bag in the closet. WTF?

While I don’t think it’s wrong to invest some in gold/silver, everything is just ludicrous.

KRG
KRG
5 years 2 months ago
Arguing between gold, or any commodity that you don’t actually plan to use and market investments is a bit of a dead end- both of those have the same basic characteristic that they depend entirely on speculating on how much you’ll be able to get someone else to pay to take your investment off your hands down the road, but they don’t actually create anything and so making those investments doesn’t allow any active way to actually affect the future value aside from, particularly with gold, encouraging as many people as possible to fight over the available supply. Here’s the… Read more »
Steve
Steve
5 years 2 months ago

Sweet Momma.

And with that, the debate is done! Just like dat.

No more comments now, go home people, nothing left to see here.

Matt
Matt
5 years 2 months ago

I think this post and the ensuing comments mark the beginning of the end of IWTYTBR as a legitimate, respectable personal finance blog. Ramit has moved into the territory of writing shock posts to generate as much controversy in the comment section as possible. I for one will not be returning back, as I have no interest in watching the downfall of this site. Thanks for helping me automate my finances Ramit and for showing me some useful tools in your book. I wish you the best of luck.

Daniel M. Wood
5 years 2 months ago

I am glad he has found himself a strategy that he thinks is good and that so far has been working for him.

But I agree, you cannot get too much actionable knowledge.
He should read books, listen to audios, maybe attend seminars.

If you are not open for input and more information over the long term you don’t have a chance and you will miss many opportunities.

Justin
5 years 2 months ago

You bring up a great point Daniel. The biggest thing that this guy doesn’t have going for him is that he’s unteachable. His certainty will cause him to lose his shirt beyond any investment strategy. Good lesson for all of us.

Philip
Philip
5 years 2 months ago
KRG you say If you buy gold, you’re trading something immediately useful (money) for something that you can’t can any immediate utility out of (unless you’re a smith, dentist, or researcher in certain fields) your ability to create value from that investment is effectively 0. That logic is flawed. Gold is often viewed as a commodity. It is…but it is also a currency. And your argument fails to account for this. The gold market is open longer than the equites market…you can trade gold all day, most every day. So it is very liquid. And it has inherent value. Has… Read more »
trackback
5 years 2 months ago

[…] I Will Teach You to Be Rich: This guy is going to regret his life in 15 years […]

Wilma
Wilma
5 years 2 months ago

I didn’t want to read past the first “lol”. I did anyway and regretted it, sort of like when arguing with talk-radio-educated people.

AbleFable
AbleFable
5 years 2 months ago
The price of gold has always been inversely proportional to the stability of the money markets. The current high price reflects the current instability in the stock markets. The fact that the price of gold remains high indicates that a lot of people are not so sure that this will cycle, as it has in the past; The shrude bet that due to many factors mostly involving limited resources and more people vying for said remaining resources, economic recovery will not happen as it has in the past… if at all. Environmental collapse portends economic collapse. Isn’t the invisible hand… Read more »
Alex Pino
5 years 2 months ago

I like gold and silver plus other investments are interesting too, like real estate but more than all of that simply doing something I love on my own terms instead of slaving away at a job I don’t enjoy (errr..hate).

Christophe
Christophe
5 years 2 months ago
Mike Maloney has an excellent book about Gold & Silver investing: http://goldsilver.com/books/ He makes an excellent point to assess if Gold or Silver are in a bubble now: Compare how much you can buy with an ounce of gold (or silver) now and how much you could buy say in 1980 at the height of the bubble. This effectively leaves the dollar out of the equation. For example, how many ounces of Gold does it take to buy a share of the DOW? To buy a house? To buy a barrel of oil? Comparing this gives you a clearer indication… Read more »
Justin
5 years 2 months ago

Dave Ramsey was saying last night that gold has had no significant return except for in the past 8 years based on fear. Fear is the only reason that gold spikes and that once the fear is gone their investments will be half of what they are now. Balancing that with the mass-printing of money around the world, it will be interesting to see.

Erin
Erin
5 years 2 months ago

The argument for gold & silver is by it’s very nature against the best investment advice ever – don’t be reactive, be proactive. So many “investors” see a stock rising and immediately buy it, then freak out and sell as it drops, losing money with every snap decision. The gold & silver markets are being fueled by doomsday prophecies and the snake-oil salesmen behind every 3rd radio spot Sirius has and it’s triggering that same reactive fear in people.

KRG
KRG
5 years 2 months ago
Just think of the two corner cases: imagine an economy where everyone invests every resource they have into acquiring gold vs. one where everyone invests every resource they have into producing things to sell to others? One results in a vital and growing economy, the other results in everyone being dead, from wars over gold supplies and eventually starvation, because no one is even allocating resources to growing food. Right there you can see why gold isn’t the best long term investment. It’s a penny-wise, pound-foolish investment. Odds are, you’ll make a financial profit on it, sure. There’s too much… Read more »
Christophe
Christophe
5 years 2 months ago

KRG, just ask yourself that question: is every dollar printed in the rounds of Quantitative Easing invested in growth? I fear it is not, it’s only driving prices higher, effectively devaluating your hard-earned dollars.

So who is to blame, the individual that buys precious metals to protect their wealth or the governments that run the printing presses and devaluate the currencies?

KRG
KRG
5 years 2 months ago
Comparatively few dollars were printed with QE, most of the asset purchases involved padding the reserve balances of banks so that they were more free to loan out their existing capital. We’d be much better off if it were being actively invested, but Congress has dropped the ball on its duty there and is cutting spending when it need to be investing more in filling the hole that we’re in. Currency is a means to acquire wealth and a medium for transferring value. It is not, in and of itself wealth. Printing more currency may risk devaluing currency, but it… Read more »
Philip
Philip
5 years 2 months ago
KRG says Currency is a means to acquire wealth and a medium for transferring value. It is not, in and of itself wealth. I disagree. One of the functions of currency should be a way to store wealth. If currency can not store wealth (value) it is flawed. That is why the dollar and fiat currencies are flawed. They do not effectively store wealth. That is a problem if your goal is to maintain your wealth. For thousands of years gold has been used to store wealth. It is very good in this role. KRG also urges investment in society.… Read more »
Eugene Yiga
5 years 2 months ago

“Gold avoids those unwise in its use.” – George S. Clason

JB
JB
5 years 2 months ago
I agree with Vito to some degree on this one. The main thing I disagree with him about is that he’s putting everything into gold and silver. I don’t think putting all your eggs in one basket is a good idea, unless you’re investing in a business that you know to the most granular detail — preferably your own business. Plus, I think Vito would be wise to sell a substantial portion of his gold and silver — like 90% — before 15 years are up, since I think it’s highly unlikely that they will outperform general equities for that… Read more »
Jason
Jason
5 years 2 months ago
Simple: If you do not diversify how you invest you will end up getting hurt, big time. It is smart to invest in Gold and Silver, no one is discounting that, but putting all your eggs in one basket is ridiculous. This is the type of guy who, due to his lake of eagerness to educate himself will actually be paying a premium on Numismatic Gold coins; thinking he is making a smarter investment because the guy on the other end of the phone is telling him about confiscation laws so he can collect a higher commission on the gold… Read more »
smart money
5 years 1 month ago

You can’t say with certainty that he’ll regret it in 15 years because currently he is right to some extent about the sovereign debts of many nations around the world.

Gold AND the USD are held as reserve currencies in many central banks. Civilisation will be collapsing if gold prices collapses and becomes ‘worthless’

Investing in gold and silver is better than investing in nothing; investing in nothing is better than spending his income on junk. As long as that guy doesn’t spend his income on junk and consumer crap then he’ll be fine.

Keynote Speaker
5 years 1 month ago

I have to agree with you on this one, how can you blindly invest in anything? It is better to educate yourself on any topic regardless of how much you think you know, rather than invest on an apparent guess. Also, people who swear and rant like that show their true colours and class, which also shows (in most cases, generalizing here) education and intelligence level. Good for you for trying to offer him resources though, too bad he isn’t willing to educate himself.

Leszek Cyfer
5 years 1 month ago
Bonds, cash, gold, silver, precious stones, land, tools, perishables (like food), skill sets – as an investment and insurance – all have their cons and pros. There are underlying assumptions and predictions for future that define which seem better or worse. From worse to worst expected – bonds, gold/silver/precious stones, land/tools/perishables. And for all occasions – skill sets, though they are diverse and applicable to some scenarios better than to others. My take on it – it’s good to have diversified investments, with percentage varying depending on current situation and predictions, but also stashed gold, staple foods, tools of trade… Read more »
Ankur
Ankur
5 years 1 month ago
My 2 cents. Every investment needs to be looked at from time horizon point of view. Keeping money in checking account would not be good for time horizon of 15 years but would be good for time horizon of 15 days. For ultra long term, that is beyond life time of an individual, Gold is store of value in the sense that it protects its purchasing power. It is said that an ounce of gold would buy you more or less same basket of basic necessities now as it would have 100 years back. However, same is not true if… Read more »
Philip
Philip
5 years 1 month ago
Ankur You make a good point. For ultra long term, that is beyond life time of an individual, Gold is store of value in the sense that it protects its purchasing power. It is said that an ounce of gold would buy you more or less same basket of basic necessities now as it would have 100 years back. I would argue that you can extend that (what else has held value for thousands of years) or, I believe, can bring it in. Today is a good example. The down tanked, the dollar tanked, commodities tanked…but gold rises. Yes, the… Read more »
Evan Sacks
Evan Sacks
5 years 1 month ago

I found something interesting to try. Hold down ctrl+f and type “gold” without quotes. Count how many times Ramit actually mentions gold. I count “0”

trackback

[…] This guy is going to regret his life in 15 years – I Will … – Sigh. An email I got recently. Vito writes: “Love your name btw. Just ram it! lol. My investment strategy is non complicated. I invest everything I have in gold and … […]

bill
bill
7 months 8 days ago

Wall street keeping gold and silver down lying on inflation only so long will thiz go on remember wall stree has replaced confress and senate they own them

JRC
JRC
4 months 14 days ago
Gold is a terrible investment to be sure. It underperforms just about every other investment over the long term. But that’s not the biggest reason not to invest in it. First, we have to ask, why do people think that holding gold is a good idea? Well, the biggest reason is to be secure in times of economic emergency. Here’s the problem with that. The Federal Govt under the Emergency Banking act of 1933 which amended the Trading With The Enemy Act of 1917 has the power to confiscate ALL privately held gold in times of ……wait for it…..”Economic Emergency”.… Read more »
nathan
nathan
4 months 21 hours ago

Commodities like gold and silver are worth what you say they are worth. Stocks provide income. They have balance sheets, income statements, cash flows etc to compare from the same industries and sectors. Stocks produce income. Gold and silver are the worth investments. I have 100 percent of my money in stocks and I guarantee you in the long run 20-50 years your gold and silver theory will be slaughtered by stocks.

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4 days 20 hours ago

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