Robert Kiyosaki's advice on how to invest smarter with alternative investments

“Definition of insanity is doing the same thing over and over again and expecting things to change,” exclaimed Kiyosaki in a recent post on X, formerly known as Twitter.¹

He points out that the three US leaders with the most impact on one of the world's leading economies — President Joe Biden, Janet Yellin as Treasury Secretary and Jerome Powell as Fed Chairman — are repeating historical mistakes that Kiyosaki believes will eventually lead the US economy towards depression and war.

Kiyosaki's use of the term “depression” may resonate with a wider audience, as many TikTok users are now drawing comparisons between the current state of America's finances to the Great Depression.

For Kiyosaki, he suggests proactive measures.

“Buy gold, silver, and Bitcoin," explains Kiyosaki. "[It's] Time to get smarter and get richer."

To understand Robert Kiyosaki's advice, here's how these alternative investments can help savers and investors withstand potential economic headwinds.

Gold and silver

Precious metals — particularly gold and silver — have been a popular hedge against inflation. The reason is simple: They can’t be printed out of thin air like fiat money.

Moreover, due to their reputation as safe-haven assets, precious metals may experience heightened demand in times of geopolitical uncertainty or war.

Kiyosaki has long been a fan of gold and first purchased the yellow metal in 1972. He has explained in the past it’s because he doesn’t “trust” US federal institutions that control the supply of money.

In October, he predicted, “Gold will soon break through USD$2,100 and then take off. You will wish you had bought gold below USD$2,000. Next stop gold USD$3,700.”²

Kiyosaki likes silver, too. “Silver from USD$23 to USD$68 an ounce,” he said, projecting major upside for the grey metal.

The price of gold surged by more than 10% in 2023, while silver remained relatively unchanged.

Today, there are many ways to gain exposure to gold and silver, but Kiyosaki prefers to just buy the metals directly. “I do not touch paper gold or silver ETFs. I only want real gold or silver coins,” he previously wrote³. However, mainstreet investors may prefer the liquidity gold shares and silver stocks provide — or the diversification of gold or silver exchange-traded funds (ETFs).

For those looking for precious metal exposure, while maintaining diversification, check out:

• iShares Gold Bullion ETF (CGL): This ETF seeks to replicate the performance of the price of gold bullion, less fees and expenses. Hedged to the Canadian dollar. Shares trade between $14.61 and $19.19 (52-week spread, as of April 2024), with a year-to-date (YTD) return of 7.0%
• iShares S&P/TSX Global Gold Index ETF (XGD): This ETF seeks to provide long-term growth replicating the performance of the S&P/TSX Global Gold Index, minus expenses. Shares trade between $15.01 and $21.33 (52-week spread, as of April 2024), with a year-to-date (YTD) return of 9.95%
• Horizons Gold ETF (HUG): This ETF seeks to replicate the performance of the Solactive Gold Front Month MD Rolling Futures Index ER. US dollar gains or losses are hedged. Shares trade between $18 to $19 (as of April 2024), with a year-to-date (YTD) return of 6.98%
• BMO Gold Bullion ETF (ZGLD): This ETF offers investors a chance to invest in physical gold (held at BMO vault). Shares trade between $31.29 to $35.66 (as of April 2024). There is no year-to-date data as the fund's inception is March 8, 2024

For investors interested in a discount brokerage with access to gold or silver ETFs — and instant diversification that comes withe funds — check out:

• CIBC Investor's Edge: Build your own portfolio using mobile or desktop research tools including indepth analysis and up-to-the-minute equity quotes. Open registered accounts, such as Tax-Free Savings Account (TFSA), a registered retirement savings plan (RRSP) or other tax-deferred options, as well as non-registered trading accounts. For active traders (more than 150 trades per quarter) pay just $4.95 per trade for ETFs and stocks with no fees charged for money market mutual funds.
• Wealthsimple: Get $25 welcome bonus, plus free trades when you open and fund your trading account (with $150 or more). Link this trading account with a high-interest chequing account and get 4% interest on all deposits — a great option for parking your investment funds before making a trade.
• Questrade: New customers get $50 in free trades (a trade commission rebate) after adding $1,000 into their trading account.

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Bitcoin

Kiyosaki is bullish on Bitcoin, as the world’s largest cryptocurrency made a comeback last year. From it's low Bitcoin skyrocketed in value, with a staggering 154% spike in value in 2023.

But investors should not forget just how volatile Bitcoin (and all cryptocurrency) can be — and how that volatility can impact returns.

In November 2021, the virtual currency reached a high of USD$68,990. Today, it’s hovering around USD$54,000.

Kiyosaki, however, doesn’t seem bothered by the massive swings.

When Bitcoin was testing USD$30,000 in October 2023, he predicted. “Next stop Bitcoin USD$135,000.”⁴

Further motivation, for those bullish on Bitcoin, is the Bitcoin block halving event, happening in mid-April 2024. When Bitcoin was initially released, the block reward was 50 BTC. Before this block halving event, the block reward was 6.25 BTC. After this block halving, the block reward will be 3.125 BTC. Block halving happens every four years (or 210,000 blocks) because of the original structure of the cryptocurrency. The block halving was a method to reduce the rate at which Bitcoin was generated — with the halving event a periodical event that is programmed into Bitcoin's code.

The reason for the block halving was to mimic the inflationary erosion of regular fiat currencies (like the US or Canadian dollar or the British Sterling pound). To mimic fiat currencies, Bitcoin was artificially capped at 21 million BTC. That means that no additional coins can be made once 21 million BTC have been created. This finite supply, alongside potential changes as more people invest in the cryptocurrency, makes Bitcoin a resource like gold — limited supply that cannot be artificially created or increased.

If Kiyosaki is right in his prediction, this cryptocurrency will need to grow in value by 200% from where it sits today. If you consider Robert Kiyosaki's predictions to be accurate, then the good news is that it's relatively easy to buy Bitcoin these days. There are many online exchanges, brokers and even ATMs to use to make a transaction, conversion or purchase. Just be warned that some conversion methods can charge up to 4% in commission fees, so look for options that charge low or even zero commissions.

One great option for low to no-fees for Bitcoin trading is Wealthsimple's crypto exchange. Like it's discount brokerage, Wealthsimple offers $25 in a trade rebate when you open a fund a new account. If you choose to expand beyond Bitcoin, you also get access to Ethereum, Solana, Cardano and Polkadot cryptocurrencies. Using your Wealthsimple crypto account, you can stake these crypto coins and earn up to 12% per year — with rewards automatically deposited into your account.

Sources

1 Robert Kiyosaki wrote on X, formerly Twitter, about the definition of insanity

2 Robert Kiyosaki wrote on X, formerly Twitter, about gold prices peaking in 2024

3 Robert Kiyosaki wrote on X, formerly Twitter, about holding gold and silver coins, not ETFs

4 Robert Kiyosaki wrote on X, formerly Twitter, about his prediction of Bitcoin reaching its highest trading price