This is the Ramsey Call of the Day part of the Ramsey Network Patrick's whether since Springfield, Missouri. Hey Patrick welcome to the Ramsey channel. Hi Dave I am retired and I have 10% of my retirement in Golden Silver, Bullion and Coin And my question is with the disruptions in the economy due to inflation the Fed moved the Ukraine war and possible conflict with China in the future should I be invested in Golden Silver and if not is their own alternative? Um Well, I'm 61 and I have a net worth of several hundred million dollars and I have zero invested in gold and silver And so you know it's consistent in other words my advice is consistent with what I do in the last 10 years Gold has averaged 3.6 percent while the stock market is averaged almost 12 and so I And and the problem is that gold and silver are not necessarily what people will run to unless they're just afraid or greedy One of the two in other words a failed economy that would rely on gold and silver will before it relies on that We'll turn into a barter economy.
So, you know The only way that I mean golden silver does not have intrinsic value. It has absolutely no value except what someone else will pay you for it Gold our green president's faces on paper don't have any value except what someone else will trade you for it And so that's how exchange or currency works It's when we as a society or as a group of people agree that something has value We agree that little shiny clear rocks have more value than the rocks in our driveway and we call them diamonds But there it actually has no different. They're both a little rock, you know We just decided as a sir as a society or a culture that there, but there's nothing that automatically means that diamonds have value They don't it's only because someone else wants them that they have value and the green paper doesn't have value It's only doesn't it's only that someone else wants it that makes it have value so all of that to say anytime You're investing in a commodity because you're worried about world affairs Or stupidity on a global scale or whatever it is. You're really not accomplishing what you hope to accomplish there If you you know and so you kind of got to go extreme before these things happen And if you believe that America as we know it is getting ready to implode Which is not what you said but for those of you out there that believe that then gold is really not where you put your money You should put your money in water bottles of water bullets blue jeans and gasoline practical things think because the utilitarian things are the first things that Happen in a completely devastated society, you know, you start fresh And so and you know, you could trade a gallon of gas where there is no gas for almost anything it becomes like gold So what happens you know trying to trade your gold bar for a gallon of gas?
It won't work. No, I want it gold bar. You just got curious to go bar There was a YouTube video this kid he tried to live on a gold bars for 24 hours in experiment He couldn't do it. No one would take it and then he went and resell it couldn't get away for it Oh, I was a fun video fun experiment, you know, but all of that to say um, you know I'll throw in one other thing Patrick.
I mean a little bit facetious, but I'm really not you probably need to turn off the news I think you've been spending too much time watching the news Because everything you just outlined for me is a talking point on a 24 hour news cycle and it's affecting your brain more than It's affecting reality. Um, I mean reality is gas is going up and that's really Biden's fault Reality is because he's you know went all green and shut off the faucet anytime you create a shortage on something You create a price increase So if you want to be if you want to blame somebody for five or six dollar gas, you can look at your president He did that if you want to blame someone for an increase in car prices. He did not do that It's not his fault. He had nothing to do with it.
If you want to other parts of inflation you want to blame someone for house prices going up It's not Joe Biden's fault. He didn't do it. Can't blame him for that Cuz he there's no policy enacted by the White House or at his behest through Congress that caused those things those things are the result of a Pandemic that created a shortage that drove prices up and so we have steel Prices are way up. I'm building up here commercial building.
We're putting steel in it prices are through the roof We have a you know, we have a shortage of anything. Yeah, yeah But a shortage of anything drives the prices up and oversupply of anything drives the price down It's seventh grade economics class It's called a supply to man curve and that is not Joe Biden's fault And so when the news is on and they're going well the Biden administration and the average consumer polls are saying that everyone's mad at the president about inflation Well, they're just uninformed. You shouldn't be mad at the president about inflation You'd be mad at the pandemic, but there's no greedy, you know, boogeyman out there trying to create inflation It's gonna smooth out over time the only element of inflation that is fault And I'm 100% sure this is is the energy issue and he shut off all domestic production and so created a dad gun shortage of oil And therefore of gas and now you're having to pay through the nose to get oil and gas and we were buying 50,000 freaking barrels from Russia and guess what that's kind of hard to do right now. So Again, all in the name of being green and so George could plug his car in.
That's right. Thank you, Dave Yeah, we want to be able to plug his car in it's important that your toy car can be plugged in there shots I've been fired guys. Just so you all know. Listen Dave, aside from that.
Here's what's interesting You can build incredible wealth and never turn on the news. Isn't that wild? Yeah, higher probability of it. I think we should do a study on that Statistically, you will become a millionaire faster if you never turn on the news.
Well, I do know this I do know that my stress level goes down Yes, my tendency to rage at something that has nothing to do with anything goes down. Well, they're getting better writing these headlines Makes you click and makes you angry. That's how this works. Yeah, and it's all of us are that way So just jumping in on there on your Patrick But you know my money is in good growth stock mutual funds and in real estate that I pay cash for that's all I own I don't anything else so sell it sell all that off and put it in mutual funds You'll be better off in the long run.
I'm unusually heavy in real estate, but it's because I'm a real estate guy I got my real estate license in 1978. I've been doing real estate a long time. It's a really comfortable with earth really comfortable bricks and mortar Really comfortable being a landlord doesn't bother me a bit other people shouldn't do that because you're not comfortable with it But you know real estate up and there mutual funds on there Thanks for tuning in to the Ramsey call of the day check out all of our podcast just search Ramsey network on Apple Podcast Spotify or wherever you listen