Ramsey Everyday Millionaires Episode: Should We Invest in Precious Metals? Release Date: August 8, 2025

Introduction

In this episode of Ramsey Everyday Millionaires, hosted by the Ramsey Network, the discussion centers around the merits and drawbacks of investing in precious metals versus more traditional investment avenues like mutual funds and real estate. Featuring insights from hosts Dave Ramsey and Candace from SmartVestor, listeners gain valuable perspectives on making informed investment decisions to build and preserve wealth.

Caller’s Dilemma: Precious Metals vs. Real Estate Investments

The episode opens with a caller presenting a common investment dilemma faced by many new investors:

Caller [00:21]: "...my husband wants to invest in precious metals like gold, and I want to invest in a beachfront property or a lake property we can use as a rental. So my question is, what do you [think] is the better investment at your stage?"

Expert Advice: The Superiority of Mutual Funds

Candace addresses the caller's concerns by recommending mutual funds over both precious metals and real estate investments at their current financial stage.

Candace [00:56]: "Neither one. Right now you need to just be doing your 401ks and Roth IRAs and some good growth stock mutual funds."

She elaborates on the benefits of mutual funds:

Candace [01:02]: "A mutual fund is 90 to 200 different stocks of America's best and brightest companies... over the last hundred years or so, the stock market has averaged a little over 11% per year in the group of stocks going up in value."

Candace emphasizes the importance of starting with mutual funds, especially for those apprehensive about the stock market:

Candace [04:20]: "Investing in the stock market... it's not unstable, and it's not even that risky when you learn how to do it properly."

Debunking Precious Metals as a Viable Investment

A significant portion of the discussion focuses on why precious metals, particularly gold, are not advisable investments compared to mutual funds.

Candace [03:30]: "Gold absolutely sucks. You're going to really screw up putting your money in gold... gold has a horrible track record. Over the last 70 years, gold has an average annual return of 2%."

She bluntly advises against investing in gold, highlighting its poor historical performance:

Candace [04:10]: "No, it's not an investment. It's a good way to lose your butt."

Overcoming Fear in Investing

Dave Ramsey joins the conversation to address the emotional barriers that prevent individuals from investing, particularly the fear of the unknown.

Dave Ramsey [04:55]: "There's fear of something I don't know how to do, but it's false evidence appearing real. F E A R."

He uses relatable analogies to illustrate how managing fear can lead to financial growth:

Dave Ramsey [05:10]: "It's kind of boring... just putting money in your 401k baby. It's kind of boring."

Actionable Steps for New Investors

Candace provides clear, actionable advice for listeners ready to transition from saving to investing:

Candace [01:35]: "I'd start putting 15% of my income into 401k's and Roth IRAs and good growth stock mutual funds."

She encourages seeking professional guidance to navigate the investment landscape:

Candace [05:00]: "I sit down with a Smartvestor Pro... they'll finish teaching you the lesson that I just started teaching you."

Conclusion: The Path to Wealth Building

The episode concludes with a reinforced message that disciplined investing in mutual funds and retirement accounts is the most reliable path to building substantial net worth.

Candace [05:35]: "...just got out of debt. So no, you're gonna be putting 15% of your income aside in good growth stock mutual funds. And that is the shortest direction to your first million to $5 million in net worth."

Key Takeaways

1. Prioritize Mutual Funds: For those who are debt-free with an emergency fund, investing in mutual funds through 401(k)s and Roth IRAs is recommended over precious metals and real estate at the initial stages.

2. Avoid Precious Metals: Historical data indicates that gold and other precious metals have significantly underperformed compared to the stock market, making them poor investment choices.

3. Manage Investment Fear: Understanding and educating oneself about the stock market can mitigate unfounded fears, making investing a less daunting and more profitable endeavor.

4. Seek Professional Guidance: Engaging with investment professionals like SmartVestor Pros can provide the necessary education and support to make informed investment decisions.

Notable Quotes

• Candace [03:30]: "Gold absolutely sucks. You're going to really screw up putting your money in gold."
• Dave Ramsey [04:55]: "There's fear of something I don't know how to do, but it's false evidence appearing real. F E A R."
• Candace [05:35]: "...putting 15% of your income aside in good growth stock mutual funds. And that is the shortest direction to your first million to $5 million in net worth."

For listeners seeking personalized investment advice, connecting with a SmartVestor Pro is encouraged through Ramsey Solutions' platform.