Gold

Pure gold bullion bars in bank vault storage.
Corona Borealis Studio/Shutterstock

This is Kiyosaki’s simplest recommendation. For centuries, gold has been the go-to safe haven asset.

It can’t be printed out of thin air like fiat money, and its value is largely unaffected by economic events around the world.

Investors often rush toward gold in times of crisis, so it makes sense to get ahead of the pack.

Case in point: In the first six months of 2020 — when the stock market went on a rollercoaster ride due to the COVID-19 pandemic — increasing demand for the yellow metal drove its price from $1,509 to $1,772 an ounce.

The most direct way to play gold is to own bullion. But that can be difficult and expensive. An easier method is to invest in large gold mining companies.

If gold prices go up, these miners will earn higher revenue and profits, which tend to translate into higher share prices.

For instance, companies like Barrick Gold, Newmont, and Freeport-McMoRan typically do well during tough times for other sectors.

And these days, you can build your own doomsday portfolio just by using digital nickels and dimes.

Silver

Pure silver precious metals investment
MIKE MANIATIS/Shutterstock

It's also no surprise that Kiyosaki likes silver. Just like gold, silver can be a store of value and a hedge against rising rates and inflation.

The grey metal may not seem exciting, but it can be a highly effective holding during times of uncertainty. Over the past two years, the price of silver has increased by more than 30%.

As you’d expect, rising silver prices benefit silver miners.

Some of the easiest ways to play a looming silver boom are through big miners like Wheaton Precious Metals, Pan American Silver, and Coeur Mining.

That said, silver is also widely used as an industrial metal. So a downturn in global economic activity could negatively impact silver prices.

Bitcoin

Golden coins with bitcoin symbol on a mainboard.
Momentum Fotograh/Shutterstock

Once considered a niche asset, Bitcoin has now entered the mainstream.

You can purchase Bitcoin directly. But if you don’t like that kind of volatility, you can also invest in companies that have tied themselves to the crypto market.

Tesla, for instance, owns about 42,000 Bitcoins according to CEO Elon Musk’s Twitter account. When Bitcoin moves, Tesla shares tend to follow suit.

PayPal is another crypto play. Last October, the company launched a service in the U.S. that allowed users to buy, sell, and hold cryptocurrencies. It introduced a similar product for the U.K. in late August.

And then there’s Nvidia, which is known for its graphics processing units. The company’s products are a must-have for serious video gamers, but they’re also in high demand among cryptocurrency miners.

In its Q2 earnings call, Nvidia said that it wasn’t able to determine how much of its $3 billion in gaming revenue actually came from gamers rather than miners.

To be sure, these stocks are not cheap.

Tesla trades at $776 per share, Paypal is at $263, and Nvidia has a stock price of $205.

But you can get a piece of these Bitcoin plays using a popular stock trading app that allows you to buy fractions of shares with as much money as you are willing to spend.

The best protection?

Just like any other asset, the price of gold, silver, and Bitcoin can still tumble in a market crash.

Kiyosaki even predicted that when the stock market sinks, “it’s going to bring everything down with it.”

If you want an asset that has little correlation with the ups and downs of the stock market or real estate, there is one more to consider — U.S. farmland.

Even if the next crash ends up being the biggest in world history, people will still need to eat.

And over the years, agriculture has been shown to offer higher risk-adjusted returns than both stocks and real estate.

New platforms allow you to invest in U.S. farmland by taking a stake in a farm of your choice.

You’ll earn cash income from the leasing fees and crop sales. And of course, you’ll benefit from any long-term appreciation on top of that.

About the Author

Jing Pan

Jing Pan

Reporter

Jing is an investment reporter for MoneyWise. Prior to joining the team, he was a research analyst and editor at one of the leading financial publishing companies in North America. An avid advocate of investing for passive income, he wrote a monthly dividend stock newsletter for the better half of the past decade. Jing holds a Master’s Degree in Economics and an Honours Bachelor of Science Degree, both from the University of Toronto.

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