Silver

The famous author is a long-time advocate of investing in precious metals.

Gold and silver have helped investors preserve their wealth for centuries. They can’t be printed out of thin air like fiat money and their value is largely unaffected by economic events around the world.

But this time, Kiyosaki is favoring one over the other, and it has to do with the gold-to-silver ratio — which simply refers to the number of silver ounces it takes to buy a single ounce of gold.

“FYI Gold Silver Ratio oldest tracked rate in history: For 20th Century the gold: silver ratio was 47:1…47 oz of silver=1 oz gold. Today 85:1,” he wrote in a tweet last month.

In other words, the current gold-to-silver ratio suggests that gold (silver) is relatively expensive (inexpensive) historically speaking.

Kiyosaki also prefers silver because of its industrial use.

“Silver is an industrial precious metal. Gold is not.”

The grey metal is widely used in the production of solar panels and is also a critical component in many vehicles’ electrical control units. The industrial demand — plus the hedging properties — makes silver a very interesting asset class for investors.

There are plenty of silver miners well-positioned for a silver price boom. Companies like Pan American Silver (PAAS), Wheaton Precious Metals (WPM), and First Majestic Silver (AG) should provide a good starting point for some research.

But Kiyosaki suggests a more straightforward approach — just buy the metal directly.

“I do not touch paper gold or silver ETFs,” he says. “For $25 bucks everyone can buy a silver coin.”

So it might be time to visit your local bullion shop.

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Oil

To be sure, Kiyosaki doesn’t exactly claim that silver is immune to current market turmoil.

“All markets crashing: Real Estate, Stocks, gold, silver Bitcoin,” he tweeted last week.

But one asset’s strength is very well known at the moment: oil.

It’s not necessarily good for your wallet because higher oil prices mean you are paying more for gas. “Middle class wiped out by higher oil inflation,” Kiyosaki recently tweeted.

Of course, if you own investments with exposure to the energy sector, your portfolio in 2022 will probably look better than those without it.

The price of crude oil slipped in June and July but is still up 34% year to date.

As you’d expect, strong oil prices benefit oil producers. So far this year, investors have enjoyed outsized returns from names like Chevron (35%), Exxon Mobil (51%), and ConocoPhillips (50%).

That said, investing in commodities is a particularly volatile undertaking.

If you’d rather hedge against inflation without the extreme ups and downs of commodity-related stocks, take a look at a few under-the-radar alternative assets.

Pour your portfolio a glass of recession resistance

Fine wine is a sweet comfort in any situation — and now it can make your investment portfolio a little more comfortable, too.

Ownership in real assets like fine wine could be the diversification you need to protect your portfolio against the volatile effects of inflation and recession. High-net-worth investors have kept this secret to themselves for too long.

Now a platform called Vinovest helps everyday buyers invest in fine wines — no sommelier certification required.

Vinovest automatically selects the best wines for your portfolio based on your goals, and it tells you the best times to sell to get the best value for your wine.

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.

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