Robert Kiyosaki: Go for Gold And Silver—Cash Is Trash

The comments below are an edited and abridged synopsis of an article by Anna Sokolidou

Author Robert Kiyosaki expects the US dollar to become worthless soon. Many central banks, including the Fed, are printing more and more money to create the feeling that their economies are doing fine. Kiyosaki says in order not to lose your savings, it is necessary to buy something… but don’t spend your cash on what Reddit says is a sure thing.

Robert Kiyosaki: Go for Gold And Silver—Cash Is Trash | BullionBuzz | Nick's Top Six
A Rubbish bag full of dollars .

Kiyosaki believes the markets are in a mania, not in an asset bubble. Private speculators are ignoring the fundamentals while buying speculative asset classes.

Kiyosaki’s favourite assets are gold, silver, Bitcoin and real estate. He says that gold and silver are not only inflation hedges, they are highly liquid. They have a track record of over 6,000 years; cryptocurrencies lack this history.

Kiyosaki said in May that the stock market would crash because the Fed would raise interest rates. This sounds like a contradiction to his excessive money supply theory, but it isn’t. After market crashes, central banks ease monetary policy because crashes are often accompanied by recessions. So the Fed lowers interest rates and restarts QE. This raises the money supply, contributing to higher demand for precious metals. The bigger the next crash, the more the Fed will have to ease and print money.

A big problem is America’s huge national debt; servicing it requires low interest rates. If the Fed hikes interest rates, it will have to print more money to pay the debt, thus devaluing the dollar even more. Meanwhile, low interest rates don’t allow the Fed to fight inflation, since they facilitate higher money supply. Either way, the Fed is trapped.

An indicator that gold and silver are good buys right now is that the general public is not particularly interested in them, says Kiyosaki. Signs of an overvalued asset are many investors and speculators buying with both hands. This is not the case right now with gold and silver.

Investors underestimate the value of gold and silver, but Kiyosaki believes this will change.

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