Invest in gold and silver now to reap rewards after market crashes, says Rich Dad author
December 6, 2013
Expect gold and silver to hit new highs when the stock market inevitably drops, said Robert Kiyosaki, investment expert and author of the best-selling finance book Rich Dad Poor Dad.
Kiyosaki recently wrote a column for Kitco News, published on Forbes, explaining how he plans to allocate his investment dollars in 2014. In his plan, Kiyosaki explains that he would place one quarter of his investment funds in precious metals, specifically physical gold and silver.
“With gold and silver prices heading down, I would be acquiring a larger position in physical gold and silver,” wrote the best selling investment guru. “When the stock market goes down, panic will set in, and gold and silver are likely to hit new highs.”
Kiyosaki offered an analogy using the three little pigs from the traditional nursery rhyme, in which each pig built his own house with a different material: straw, sticks and bricks.
He explained the both the pig who built from straw, who represents the poor, and the pig who built from sticks, who represents the middle class, have actually built a false sense of security on fragile material. Whereas the pig who built with bricks, real tangible assets represents the rich, who build on real wealth.
“When the big bad wolf comes, in that 20-year window between 2015 and 2035, those who have built houses of ‘bricks’ are likely to get richer,” wrote Kiyosake.
“They become richer because they built with bricks, investing in tangible assets such as real estate, gold, silver, oil, food and businesses they control. Rather than save cash, they save gold and silver,” he continued.
“I am afraid [they] are in trouble. When the big bad wolf blows on their portfolios made of paper, chances are the wolf will have a feast. I would rather be building a house of bricks—gold, silver, oil, food, and businesses…tangible assets—not paper.”