‘Stocks and bonds are toast’: Robert Kiyosaki warns central banks can’t fix inflation and that ‘fake’ money is forcing state pensions to pivot — here are 3 real assets he likes now
[MoneyWise]
Bank of England recently bought £19.3 billion of U.K. government bonds to prevent a collapse in the country’s pension industry.
In the eyes of Rich Dad, Poor Dad author Robert Kiyosaki, that’s a sign to acquire three specific alternative assets.
“Bank of England pivot means buy more GSBC,” he says in a recent tweet, referring to gold, silver and bitcoin.
“When pensions nearly collapsed it exposed Central Banks cannot fix…INFLATION. Pension have always invested in G&S. Pension funds now investing in Bitcoin. They know Fake $, stocks & bonds are toast.”
Of course, gold, silver and bitcoin aren’t exactly perfect investments.
Here’s a closer look at those assets — and what Kiyosaki suggests you should do to get around their limitations.
Gold and silver
Precious metals — particularly gold and silver — have been a popular hedge against inflation and uncertainty. They can’t be printed out of thin air like fiat money and their value is largely unaffected by economic events around the world.
Kiyosaki has long been a fan of gold — he first purchased the yellow metal in 1972.
“I’m not buying gold because I like gold, I’m buying gold because I don’t trust the Fed,” he said in an interview last year.
Kiyosaki likes silver, too. In fact, he recently tweeted “Silver best investment in Oct 2022” and “Everyone can afford $20 silver.”
To be sure, precious metals aren’t immune to the sell-off that’s been going on this year. The price of gold is actually down about 9% in 2022, while silver has fallen by nearly 20%.
While there are many ways to gain exposure to gold and silver, Kiyosaki prefers to just buy the metal directly. Earlier this year, he tweeted that he only wants “real gold or silver coins” and not the ETFs.
The author also called silver “a bargain” recently. So it might be time to visit your local bullion shop.
Bitcoin
Bitcoin investors have learned the hard way just how volatile it can be.
Last November, bitcoin reached a high of $68,990. Today, it’s hovering around $19,500.
But Kiyosaki points to a potential catalyst for the world’s largest cryptocurrency: pension funds.
“Pension funds are biggest investment businesses in the world,” he comments in a recent tweet while sharing a Forbes story Your State Pension Is Now Gambling On Cryptocurrency.
The article cited a 2022 study from the CFA Institute that shows 94% of state and government pension plans have invested in cryptocurrencies.
There are many ways to tap into bitcoin. You can buy the cryptocurrency directly, invest in bitcoin ETFs, or own shares of companies that have tied themselves to bitcoin.
A side hustle
While Kiyosaki likes gold, silver and bitcoin, he didn’t say they’re all the protection you need.
“Gold, silver, Bitcoin may protect your WEALTH…but not your INCOME,” he writes.
But the author also provides a solution.
“As economy crashes, stock markets go bust, pensions crash and unemployment rises a SIDE HUSTLE may provide you income.”
Side hustle is something you get paid for doing in addition to your full-time job. It allows you to earn extra income — and could even be a way of testing the entrepreneurial waters.
“Who knows? Your side hustle may grow into the next Amazon or Bitcoin,” Kiyosaki says.
By Jing Pan