Mar 20, 2023
Bank failures continue to make headlines. Some say they are caused by incompetent management, while others point to insufficient regulatory oversight. But according to Rich Dad Poor Dad author Kiyosaki, the main problem lies with the U.S. central bank.
“The Fed is the problem,” he tells Fox Business in a recent interview. “They are — what they say — the fireman and the arson.”
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Kiyosaki points out that the bond market is crashing, and that can have serious consequences. “I’m concerned about IRAs, pension plans, and all that.”
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And although regulators quickly stepped in to assure that the deposits are safe at the failed banks, Kiyosaki warns that we're not out of the woods just yet — far from it. “Crash and Crisis just starting,” he writes in a recent tweet.
So how can investors protect themselves in this chaotic environment?
Here are a few safe haven ideas according to Kiyosaki.
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Precious metals
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.
Even though the Fed has raised interest rates aggressively to tame inflation, Kiyosaki doesn’t see price levels cooling down anytime soon.
“The thing I see is that the Fed and the FDIC are signaling hyperinflation, which makes gold and silver even better because this thing here is trash,” he tells Fox Business while holding up a $1 bill. “They are going to print more and more of this fake money.”
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Gold has long been the go-to choice for investors looking for a hedge in times of crisis. But this time, Kiyosaki likes silver because of a particular use of the gray metal.
“I think this is the best investment of all — silver. Because every Tomahawk missile has 30 pounds of silver in it,” he explains. “Every time they push that missile button, 30 pounds of silver disappears.”
While there are many ways to gain exposure to gold and silver, Kiyosaki prefers to just buy the metal directly. Last year, he tweeted that he only wants “real gold or silver coins” and not ETFs.
So it might be time to visit your local bullion shop.
Read more: Rich young Americans have lost confidence in the stock market — and are betting on these 3 assets instead. Get in now for strong long-term tailwinds
Bitcoin
Some consider bitcoin as the new gold. While Kiyosaki likes the good old yellow metal, he sees opportunity in the cryptocurrency as well.
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In the tweet where Kiyosaki warns that the crisis is just starting, he also says “Buy more G, S, BC” — referring to gold, silver and bitcoin.
Of course, many bitcoin investors learned the hard way just how volatile it can be.
Despite being the largest cryptocurrency in the world, bitcoin lost over 60% of its value in 2022.
But it’s making a comeback, surging 64% in 2023.
These days, it’s very easy to tap into bitcoin: you can buy bitcoin directly. Just be aware that many exchanges charge up to 4% in commission fees just to buy and sell crypto. So look for investing apps that charge low or even zero commissions.
Read More: Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it
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Jing is an investment reporter for MoneyWise. He is an avid advocate of investing for passive income. Despite the ups and downs he’s been through with the markets, Jing believes that you can generate a steadily increasing income stream by investing in high quality companies.
