Gold

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.

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.

Join Masterworks to invest in works by Banksy, Picasso, Kaws, and more. Use our special link to skip the waitlist and join an exclusive community of art investors.

Skip waitlist

Silver

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 slightly.

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

Some of the easiest ways to play silver is 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

Once considered a niche asset, Bitcoin has now entered the mainstream. But it has lost plenty of its allure, having fallen a whopping 53% in 2022.

Contrarian investors might want to take a closer look, though.

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.

In October, for example, PayPal launched a service in the U.S. that allows users to buy, sell, and hold cryptocurrencies. It introduced a similar product for the U.K. in late August.

And then there’s MicroStrategy, the largest corporate holder of bitcoin. As of June 28, the enterprise software technologist holds 129,699 bitcoins acquired for roughly $4 billion.

Because of MicroStrategy’s huge bitcoin stake, some investors have used it as a proxy for investing in the cryptocurrency. In the past, rallies (declines) in bitcoin have usually led to similar gains (losses) in MicroStrategy’s share price.

Fine art as an investment

Stocks can be volatile, cryptos make big swings to either side, and even gold is not immune to the market’s ups and downs.

That’s why if you are looking for the ultimate hedge, it could be worthwhile to check out a real, but overlooked asset: fine art.

Contemporary artwork has outperformed the S&P 500 by a commanding 174% over the past 25 years, according to the Citi Global Art Market chart.

And it’s becoming a popular way to diversify because it’s a real physical asset with little correlation to the stock market.

On a scale of -1 to +1, with 0 representing no link at all, Citi found the correlation between contemporary art and the S&P 500 was just 0.12 during the past 25 years.

Earlier this year, Bank of America investment chief Michael Harnett singled out artwork as a sharp way to outperform over the next decade — due largely to the asset’s track record as an inflation hedge.

Investing in art by the likes of Banksy and Andy Warhol used to be an option only for the ultrarich. But with a new investing platform, you can invest in iconic artworks just like Jeff Bezos and Bill Gates do.

About the Author

Jing Pan

Jing Pan

Investment 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.

What to Read Next

Disclaimer

The content provided on MoneyWise is information to help users become financially literate. It is neither tax nor legal advice, is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. Tax, investment and all other decisions should be made, as appropriate, only with guidance from a qualified professional. We make no representation or warranty of any kind, either express or implied, with respect to the data provided, the timeliness thereof, the results to be obtained by the use thereof or any other matter.