Robert Kiyosaki, entrepreneur and author of “Rich Dad Poor Dad,” says the rich don’t rely on dollars. Instead, they rely on real assets like gold, silver and real estate.
According to an article posted on the Rich Dad Company website, one of the main reasons Kiyosaki is bullish on gold is because the public is “sound asleep” on this asset class.
“If and when the American public wakes up to the reality that their dollars are not money, but a currency, the panic and stampede will begin,” the article reads. “Should that happen, today’s prices for gold and silver will look like bargains.”
Gold, which is currently valued at just under $2,100 for one ounce, is considered a relatively safe investment and maintains its value over the long term. However, gold prices are going up.
As explained in a Rich Dad Channel podcast episode, here are more reasons to buy gold now.
Gold Is in a Bull Market
James Rickards, former national security advisor for the Pentagon and the CIA, says gold has been in its third bull market since 1971, and prices are expected to rise. According to Rickards, gold prices should rise 1,400% to $15,000 per ounce between 2015 to 2025
“Don’t wait until 2025,” Rickards said. Gold prices are climbing, and while there’s still a long way until it reaches $15,000, Rickards says getting gold now means you can enjoy those profits.
Gold Is Liquid
Illiquid assets, such as real estate, take time to sell and convert to cash, and selling quickly typically means taking a loss. Liquid assets, such as cash and real assets, can be quickly and easily converted to cash within a short amount of time.
Rick Rule, the president and CEO at Rule Investment Media, says liquidity gives you the means and courage to take advantage of circumstances where there’s a liquidity shortage. In 2008 and 2009, Rule said it was a great investing period for him because he could buy assets.
Tying your cash up in assets reduces your purchasing power, but Kiyosaki and Rule say gold is extremely liquid. If gold prices go up, you have an asset that you can quickly convert into cash in the face of economic uncertainties.
Gold Is Now a Tier 1 Asset
Gold was reclassified as a Tier 1 asset, which makes it comparable to cash and represents the core equity assets of a bank or financial institution. According to Andy Schectman, president and founder of Miles Franklin Precious Metals, over 200 countries started buying gold in 2021, and no one is talking about it.
Schectman explained that private investors are now doing the same thing as commercial and central banks, which is massively accumulating metal and taking possession of it. According to Schectman, gold and silver are the only assets on the planet that are not simultaneously someone else’s liability.
George Gammon, a macroeconomic expert, says it’s in everyone’s best interest to invest in assets with no counterparty risk, such as gold. These assets don’t rely on a third party and can withstand economic turmoil.
Gold Reserves Are Declining
David Garofalo, chairman and CEO of Gold Royalty Corporation, says there’s a 40% decline in reserves in the gold industry. Gold is a finite resource, and there have yet to be reinvestments back into production and development.
According to RMEGold.com, it can take ten to twenty years to discover a gold deposit to develop a mine, and no one knows how much gold is left underground.
“We find ourselves in this kind of existential crisis in the gold industry right now,” Garofalo said.
Losing Faith in the Dollar
Clay Clark, a successful entrepreneur, tells Kiyosaki that many countries – Brazil, Russia, India, China, South Africa and more – have been hoarding the Earth’s gold in preparation to introduce a gold-backed programmable central bank currency called the New Development Bank. This new financial system and BRICS could soon lead to the collapse of the U.S. dollar. Clark says people who buy real assets like precious metals will be prepared.
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