Robert Kiyosaki warns central banks can't fix inflation — here are three real assets he likes now (2024)

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Bank of England recently bought £19.3 billion of U.K. government bonds to prevent a collapse in the country’s pension industry.

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In the eyes of Rich Dad, Poor Dad author Robert Kiyosaki, that’s a sign to acquire three specific alternative assets.

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“Bank of England pivot means buy more GSBC,” he says in a recent tweet, referring to gold, silver and bitcoin.

“When pensions nearly collapsed it exposed Central Banks cannot fix…INFLATION. Pension have always invested in G&S. Pension funds now investing in Bitcoin. They know Fake $, stocks & bonds are toast.”

Of course, gold, silver and bitcoin aren’t exactly perfect investments.

Here’s a closer look at those assets — and what Kiyosaki suggests you should do to get around their limitations.

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Gold and silver

Precious metals — particularly gold and silver — have been a popular hedge against inflation and uncertainty. They can’t be printed out of thin air like fiat money and their value is largely unaffected by economic events around the world.

Kiyosaki has long been a fan of gold — he first purchased the yellow metal in 1972.

“I’m not buying gold because I like gold, I’m buying gold because I don’t trust the Fed,” he said in an interview last year.

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Kiyosaki likes silver, too. In fact, he recently tweeted “Silver best investment in Oct 2022” and “Everyone can afford $20 silver.”

To be sure, precious metals aren’t immune to the sell-off that’s been going on this year. The price of gold is actually down about 9 per cent in 2022, while silver has fallen by nearly 20 per cent.

While there are many ways to gain exposure to gold and silver, Kiyosaki prefers to just buy the metal directly. Earlier this year, he tweeted that he only wants “real gold or silver coins” and not the ETFs.

The author also called silver “a bargain” recently. So it might be time to visit your local bullion shop.

Bitcoin

Bitcoin investors have learned the hard way just how volatile it can be.

Last November, bitcoin reached a high of $68,990. Today, it’s hovering around $19,500.

But Kiyosaki points to a potential catalyst for the world’s largest cryptocurrency: pension funds.

“Pension funds are biggest investment businesses in the world,” he comments in a recent tweet while sharing a Forbes story ‘Your State Pension Is Now Gambling On Cryptocurrency.’

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The article cited a 2022 study from the CFA Institute that shows 94 per cent of state and government pension plans have invested in cryptocurrencies.

There are many ways to tap into bitcoin. You can buy the cryptocurrency directly, invest in bitcoin ETFs, or own shares of companies that have tied themselves to bitcoin.

A side hustle

While Kiyosaki likes gold, silver and bitcoin, he didn’t say they’re all the protection you need.

“Gold, silver, Bitcoin may protect your WEALTH…but not your INCOME,” he writes.

But the author also provides a solution.

“As economy crashes, stock markets go bust, pensions crash and unemployment rises a SIDE HUSTLE may provide you income.”

A side hustle is something you get paid for doing in addition to your full-time job. It allows you to earn extra income — and could even be a way of testing the entrepreneurial waters.

“Who knows? Your side hustle may grow into the next Amazon or Bitcoin,” Kiyosaki says.

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.

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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.

When the Dow Jones plummeted 22.7 per cent during the COVID-19 recession, fine wine fell only 1.4 per cent.

It offers plenty of growth, too. Since 2005, Sotheby’s Fine Wine Index has gone up 316 per cent.

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.

This article was created by Wise Publishing. Wise is devoted to providing information that helps readers navigate the complex landscape of personal finance. Wise only partners with brands it trusts and believes may be helpful to the reader. This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

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