A caller on a recent episode of “The Ramsey Show” asked whether buying silver was a smart move after seeing friends get big returns. While it may have looked like a win from the outside, co-hosts Rachel Cruze and John Delony quickly pushed back on the idea.
“Not a great one,” Cruze said when asked if silver was a good investment. “Usually commodities like that, gold, silver, all of it, is so dependent upon honestly, the fear of what’s going on in the current moment.”
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She explained that silver prices spike when global events cause panic, but they fall just as quickly once things calm down. “You can really see a correlation with the amount of fear that the American people have in life,” Cruze added.
Despite the skepticism, silver has surged 67% year-to-date as of Nov. 2, a jump that has caught the attention of many investors. But Cruze warned that those gains don’t make it a reliable long-term strategy.
She also pointed out that some buyers aren’t just thinking about returns, they’re prepping for economic collapse. “They do it for like an end-of-the-world, apocalyptic plan,” she said. But if the U.S. dollar completely collapsed, Cruze argued, people wouldn’t be trading silver. “It’s going to be ammo and food and clean water. A little bag of gold? Everyone’s like, ‘I don’t need that. I need food and shelter.’”
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Delony chimed in with a more personal perspective. “The wealthiest guy I know personally that I hang out with is Dave Ramsey, and he owns zero dollars of silver or gold commodities,” he said. “For me and my house, we owe zero dollars of silver and gold.”
The caller, David from Indiana, said he had already been leaning away from investing in silver but wanted confirmation. “I know we did the total money makeover and, you know, we have our money in, you know, in a 401(k) and then some [certificates of deposit],” he said.
Delony encouraged him to stick with his plan. “Keep being boring, dude,” he said. “Because that same friend’s going to come back next month and be like, ‘I just lost all my pants on silver.’”
Cruze also gave a lighthearted warning about where silver gets marketed. “If they have commercials on cable TV, it’s always reverse mortgages, buying gold and silver, and walk-in bathtubs,” she said. “That’s the market they are preying on,” Delony added.