"Rich Dad Poor Dad" author Robert Kiyosaki sounds the alarm at just how bad this downturn could be. The stock market has been on a roller-coaster ride this year, and not in a good way. After reaching record highs in February, the S&P 500 and Nasdaq Composite have both taken a nosedive, with the former down 23% and the latter 31%. While there are many factors behind the market sell-off, one of the most important is the rise in interest rates. “This is going to be the biggest crash in world history, we’ve never had this much debt pumped up,” Robert Kiyosaki said in an interview earlier this month.
Biggest Crash in World History
Robert Kiyosaki, best-selling author of “Rich Dad Poor Dad,” isn’t known for his timidity. So when he tweets that “Crashes are the best times to get rich,” it’s worth considering his investment advice. “Anything that can be printed, like a stock certificate, a bond, or a dollar, I don't want it,” he says. Here's a look at what Kiyosaki prefers instead.
Over the centuries, precious metals — particularly gold and silver — have been a popular hedge against inflation and uncertainties. They can’t be printed out of thin air like fiat money and their value is largely unaffected by economic events around the world. This makes them an attractive investment for those looking to protect their wealth from inflation or other economic turbulence.
When Kiyosaki was asked if he was adding anything to his portfolio, his response was simple: “I’m buying more gold and silver.” Kiyosaki sees a glorious revival on the horizon. “Silver to stay at $20 for 3-5 years, then climb to $100 to $500,” he says in a recent Tweet, adding that “everyone can afford silver” and “accumulate silver now.” For gold, he points to fellow investing guru Jim Rickards, who once predicted yellow metal to soar to $15,000 an ounce. “I like his numbers. I think $15,000 is not out of the question for gold,” Kiyosaki says.
While there are a few options to gain exposure to gold and silver, he prefers to just buy the metal directly. Earlier this year, he tweeted that he only wants “real gold or silver coins” and not ETFs.
Some say that bitcoin is the new gold. While Kiyosaki is a self-proclaimed gold bug, he also likes the world’s largest cryptocurrency. “When Bitcoin the first time hit $20,000, I watched it, and it traced back down,” he says. “So it came back and hit $6,000 so I knew it was picking up momentum as a trader would say … And when it hit $6,000, I bought 60. So I'm in the money.”
As we know now, bitcoin then went on a rollercoaster ride, hitting a high of $68,990 last November. Today, bitcoin trades at around $19,000 a piece — still well above Kiyosaki’s entry price.
Food prices have been on the rise in recent years, due to inflation and food shortages around the world. “Inflation is about to take off. Best investments are cans of tuna & baked beans,” Kiyosaki tweeted in June, explaining that you “can’t eat gold, silver, or Bitcoin” but you can eat tuna and beans. “I invest in Wagyu cattle,” he says. “People talk about farmland and all that stuff, but I think cattle are great.” It might be a little bit more difficult for retail investors to get into cattle, but the payoff can be worth it. “You can always eat the thing,” Kiyosaki says.
Protect Your Portfolio
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