The "what not to do" crowd have finally dumped their precious metals

[vand]

Excellent sentiment barometer... the hot money that bought at the peak is now fed up of sitting on their losses and have dumped. Bottom is well in.

 

[5huggy]

There is "SMART" money and "DUMB" money - He is advocating (in effect) Bought HIGH - - - sell LOW!!

Smart or Dumb???? what do you all think  ? 

He is not giving the best financial advice by a long shot! IMHO

 

Good spot @vand

[vand]

I actually like Dave Ramsay and the advice and motivation he gives on debt management is good solid advice, but he's not an "investment" guy, or at least the level of advice he gives is for the financially illiterate. That reflects his audience, 99% of whom are financially irresponsible and self-destructive.

[5huggy]

I'll go with that!  - it is sometimes hard to believe how " self destructive" some people can be!

I know of a chap locally, who had a serious accident and received over 1 m in compensation - and within 2 years of sheer debauchery he was divorced, back living with mother, penniless, and depressed 

[vand]

18 minutes ago, 5huggy said:

I'll go with that!  - it is sometimes hard to believe how " self destructive" some people can be!

I know of a chap locally, who had a serious accident and received over 1 m in compensation - and within 2 years of sheer debauchery he was divorced, back living with mother, penniless, and depressed 

Did you know that 70% of lottery winners end up bankrupt? If you don't have good financial grounding then it doesn't matter how much you earn or any windfall you may get, you'll end up spending it all and keep on going.

[Kookaburracollector]

‘A fool and his money are soon parted’

Anyone selling full sovereigns for £50 drop me a line...

[KDave]

I like Dave Ramsey, his foundation steps are based on sound principles and work well in the way that AA meetings work well for alcoholics. I think his investment advice though, is a bit reckless and lacks basic understanding;

"Gold has not got a good track record long term, in fact it sucks as an investment over a long period of time" - not entirely accurate.

"Past returns are not indicative of future returns - horse cr*p of course they are!" - not entirely accurate.

He believes that stocks and houses will consistently give double digit returns which they have over the majority of his life.

[shortstack68]

2 hours ago, 5huggy said:

There is "SMART" money and "DUMB" money - He is advocating (in effect) Bought HIGH - - - sell LOW!!

Smart or Dumb???? what do you all think  ? 

He is not giving the best financial advice by a long shot! IMHO

 

Good spot @vand

Sometimes cutting your losses instead of sitting on them forever is the smart move, however, putting all your eggs into one basket can be dangerous, if i had 100k i would be splitting it between some gold and some numismatic coins

[KDave]

I would normally agree but he is advocating selling 100K worth of physical gold when she doesn't need the money and it costs nothing to hold. 

[Thelonerangershorse]

Who on earth told her to buy 200k in gold whilst she still had mortgage debt?

 

[vand]

The MO of most casual investors is Buy High, Sell Low, which is why they simply never make any money in any market. It's not the market, it's them. They're not stupid per se, but they can't for the life of them control their emotions. This woman's entire view of the prospects for gold are coloured by her experience of the last 8 years. All she can think about is the losses she is sitting on.

Markets have a way of penalising the undisciplined speculator/investor. They look at something and see that it is going up and think they want some of that. It's just good old fashioned FOMO. What they should be doing is looking at something that has gone down and decide if it is cheap enough to be worth buying.

[KevinFlynn]

12 minutes ago, Thelonerangershorse said:

Who on earth told her to buy 200k in gold whilst she still had mortgage debt?

I assume those were just some "old coins from grandpa lying around"...  😛

Or she has a stacking husband ...  😶

[shortstack68]

1 minute ago, vand said:

The MO of most casual investors is Buy High, Sell Low, which is why they simply never make any money in any market. It's not the market, it's them. They're not stupid per se, but they can't for the life of them control their emotions. This woman's entire view of the prospects for gold are coloured by her experience of the last 8 years. All she can think about is the losses she is sitting on.

Markets have a way of penalising the undisciplined speculator/investor. They look at something and see that it is going up and think they want some of that. It's just good old fashioned FOMO. What they should be doing is looking at something that has gone down and decide if it is cheap enough to be worth buying.

Bitcoin springs to mind here

[whitesands1]

I don't think I'd like to take him to Disneyland.

[AuricGoldfinger]

God what terrible advice. Of course the purchase price is relevant. The ONLY two relevant prices are the BUY in price and the CASH out price. Aslong as they dont cash out now they haven’t lost a penny. All they do if they  sell is confirm the loss. You could even tell she didn’t agree with what he was saying. Plus I’d say theres quite good evidence and probability that due to the level of global economic uncertainty currently that PMs are quite a smart buy at the moment. If you dont need the cash -HODL!!!!

[silenceissilver]

5 hours ago, Kookaburracollector said:

‘A fool and his money are soon parted’

Anyone selling full sovereigns for £50 drop me a line...

There are people selling full sovereigns for unbelievably low prices. At least I popped into a few pawn shops in order to find out their selling prices for sovereigns, at the end of December and one had one full sovereign at a selling price of 326 and a half sovereign for I think 146. Looked it up, 1914 is not a low mintage. The condition was good as far as I could tell, almost looked like the only proof sovereign I saw (of a friend, I have not bought any proof coins yet), at least from some distance, so out of interest, I asked how much they'd pay for one sovereign....ONEHUNDREDANDFIFTY British Pounds. Popped into other pawn shops as well, most had no coins, one offered standard bullion looking sovereigns (from a bit a distance) at least for 270, 280, not cheap but not a complete rip off either unlike in the other pawn shop.

[vand]

On 06/01/2019 at 11:58, vand said:

The MO of most casual investors is Buy High, Sell Low, which is why they simply never make any money in any market.

I’ve been thinking about this, and I think it’s not entirely accurate. I’d like to revise it to:

“The MO of most casual investors is Buy Excitedly, Sell Desperately, which is why they never make any money in any market.”

[KDave]

Yes that appears to be the heart of it. Emotion makes the decision, as in this case. She doesn't like her gold now, wouldn't buy it at half the price, but when it was doing well, she desired it enough to buy at twice the price. Why do we do it? 

[flim]

Fear of missing out

It was bought when price was rising

It was not about bargain

conclusion 

item is lousy investment

[ilovesilverireallydo]

Reminds me of this guy