Is Dave Ramsey a Hypocrite?

by Mark Wong on May 29, 2010 · 12 comments

in Personal Finance

Well, I probably wouldn’t be posting this if I didn’t have compelling evidence that he was a hypocrite.  I listen to Dave Ramsey’s show very often and I think he has pretty sound recommendations.  The problem with I have with him is the same I have with many personal finance experts and bloggers out there – they sell and endorse products that contradict their own financial advice.  I can understand to some degree why bloggers do it:  they need the money pretty badly.  But you’d think that Dave Ramsey has enough where he can lay off the shady endorsements.

Anyway, below is a snapshot of the home page for Gold Stash for Cash.  (Seriously, how can something with the name “Stash for Cash” NOT be a scam?)  And in the lower right, you’ll notice Dave Ramsey’s big bald endorsement.

This wouldn’t be so bad if Ramsey was a complete moron like Glenn Beck.  But Ramsey often rails against people who believe in hoarding gold, both on his television and radio show.  He tells them how dumb investing in gold is and how the people who try to promote the sale of gold are complete idiots.  He went as far to compare gold to “colored rocks” without any real value in this world.

But despite all this, despite his seemingly logical and sound opinion on this commodity, Ramsey fully endorses one of these “idiot” companies that pump up the perceived value of gold.  (You can listen to it here)  Yes, Dave Ramsey gets a cut from a Cash For Gold scam.  I wonder if he teaches a chapter on “How to Rip Off Consumers” in Financial Peace University?

LaraNo Gravatar May 29, 2010 at 4:14 pm

Ramsey is out to make a buck any way he can. And the real shame is that he’s making it off of debt-ridden, financially unsophisticated folks who hang on his every word.

jacksonNo Gravatar July 9, 2010 at 6:51 pm

Ramsey said on the radio that he wants you to SELL gold not buy gold and this is a business where you can sell what you have to get money to pay off debt. That is inline with what he teaches. He still says do not buy gold as an investment.

MikeNo Gravatar July 9, 2010 at 7:01 pm

If you’ve ever listened to the show enough (which obviously you haven’t since your casting stones before knowing the facts/or first checking into it)…Ramsey still is hardcore against gold, but as any new listener who already has it and didn’t know it was a terrible investment or even better yet, those w/ stuff they need to sell to help get out of debt…this is a great place to get cash for your junk/gold…especially if you can make more on it than Craigslist, eBay, garage sale, etc. So check your definition of hypocrite and your facts next time. PS…Lara, have you heard the thousands of testimonies of those who call in because a $19 book (big money!!!) has changed their situation by thousands and thousands of dollars?! You and the host of his blog should hang out…you sound perfect for each other.

MakoNo Gravatar July 9, 2010 at 8:16 pm

@Mike and @jackson For the record, I do listen to Dave’s show and I do feel he offers a lot of great advice. However, people do need to be judged for their actions. Just because you have a TV or radio show doesn’t give you a free pass.

Gold Stash for Cash is just one of the hundreds of commodity trading scams that have a tendency to pop up with a new name every day. I don’t care if it’s in line with his “sell your gold” advice. A SCAM IS A SCAM.

If I told you to invest in your 401K, which is good advice, but then referred you to a scam-artist 401K manager that charged you random fees and ripped you off, I would consider that immoral.

The fact that he’s even working with them is hypocritical. Why is he telling his listeners how great these people are? Shouldn’t he be saying “hey, these are idiots who perceive value in colored rocks? Come rip these people off by selling them your gold.” It is really disappointing when people you generally like do things that are wrong.

Speaking of disapointing, it is really annoying when people vent on blogs but don’t list their real email addresses. Oh, I’m sure you’re completely unbiased, “mike jackson” since your both of your IP addresses show that you came from Brentwood, Tennessee (Dave Ramsey’s headquarters) and you even came in through the Daveramsey.com mail server. (Nice try swicthing your browser) Next time you want to have a legitimate discussion, I’m definitely up for it, but please have the courage to post your real email address. (Or at least use a public computer at the library to cover your tracks Einstein)

And if you see Dave, tell him I said hi. Also please tell him that I do watch and listen to his shows, and I do generally enjoy them, but I don’t agree with everything he says.

JimmyNo Gravatar July 12, 2010 at 6:27 pm

LOL! Looks like you’re getting hounded by Dave Ramsey employees. I didn’t know he actually had minions. How nice of Dave to pick on a blogger recovering from kidney failure.

MakoNo Gravatar July 12, 2010 at 6:29 pm

Welcome to the world of blogging. And to be fair to Dave, it likely wasn’t him; just one of his employees.

WakkoNo Gravatar September 16, 2010 at 3:20 pm

Hear this! I met a person once and as we were talking about gold, they said that their relative worked for a jewler that is owned by Dave Ramsey. When I asked who the jewler was, they said Gold Stash For Cash. Could he have been just a bit inaccurate and was just trying to say”endorsed by Dave Ramsey”. Time may reveal.

Jay ShermanNo Gravatar January 10, 2011 at 5:28 pm

DAVE IS DA BOMB!!!!!!!!!!!!

Dollars Not DebtNo Gravatar January 22, 2011 at 4:28 am

I have been following Dave Ramsey’s plan for about 2 years and I will be 100% debt free in August of 2012. House and everything! The plan works–but only if you are focused and have self-control. I will have paid off a total of $100K in the four years. I talk about my path to debt freedom in my blog.

Dollars Not Debt

ChrisNo Gravatar February 1, 2011 at 6:17 pm

I don’t understand. How is it hypocriticl for Dave Ramsey to endorse a business that enables you to sell your gold jewelry if his explicit teaching is that you should sell excess jewelry and pay off your debt? Do you even understand the definition of the word “hypocrisy”?

Furthermore, you’re saying “Gold Stash for Cash” is a scam. But the only evidence you give is that you don’t like the name. Now, if they are cheating people by buying gold at well below wholsale value and then selling it for well above the retail price, then they would be scamers. But you don’t cite one shred of evidence that they are doing so.

MakoNo Gravatar February 1, 2011 at 6:23 pm

Hypocrisy would be like stating that you are against prostitution, then taking an ownership stake in a brothel.

Dave openly blasts these gold buyers on his show as morons, thieves, and crooks, yet HE WORKS WITH THEM AND TAKES A CUT OF THEIR REVENUE.

Hypocrisy.

JustMeNo Gravatar February 5, 2011 at 3:01 pm

I’m DEBT FREE!!!!! I filed bankruptcy, and got rid of a $200,000 deficiency from the sale of my house!

Now, I could follow Dave’s advice (I presume, anyway – he hangs up if you try to make him get specific) and get another job, live on dirt, spend the next 10 years of my life paying it off, but I think I’ll just keep working 50 hours a week and have time for my family, and some money to send the kids to college. 🙂 And even with a bankruptcy, my credit will be better than if I followed his advice.

Anybody who listens to him must be really bad at math.

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