Yahoo Finance Robert Kiyosaki Says This Is the No. 1 Asset Everyone Can Afford
Robert Kiyosaki’s “Rich Dad” financial empire is based on changing people’s beliefs and attitudes toward saving and investing.
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While most Americans pour their investment money into stocks and bonds, Kiyosaki says they overlook the one asset that everyone can afford and that offers the best financial protection going forward. For Kiyosaki, that asset is silver.
The financial personality interviewed blogger, SilverSlayer on “The Rich Dad Channel,” discussing this very topic. Here are the highlights, along with a look at how you can incorporate silver into your own portfolio.
Why Silver?
Kiyosaki believes in silver because it is a tangible asset you can touch with your hands. It’s also useful for everything from semiconductors to jewelry, and it’s playing a big role in the emerging “green” economy.
Kiyosaki also thinks silver is a great idea for any investor because it’s priced at a level that everyone can afford. While many individual stocks are priced at hundreds of dollars per share, and some mutual funds have investment minimums of $1,000 or more, an ounce of silver costs just $24.25 as of Dec. 26, 2023, well within the reach of any investor.
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While one ounce of silver won’t make you wealthy, the idea behind Kiyosaki’s suggestion is that it’s affordable enough that you can consistently acquire ounces over time until the point that you’ve got a sizable investment.
Beyond these reasons, both Kiyosaki and his guest SilverSlayer believe in silver because it’s scarce and demand is rising. According to their YouTube discussion, demand in the industrial sector is picking up rapidly, particularly for solar panels and electric vehicles.
As the era of the Green New Deal has only just begun, in their opinion, demand is likely to go through the roof. Meanwhile, the supply of silver remains relatively scarce. As rising demand for a limited resource leads to higher prices, Kiyosaki and SilverSlayer both see silver as a good investment to own.
Why Kiyosaki Prefers Hard Assets Over Cash
Kiyosaki prefers hard assets like silver over financial ones like the U.S. dollar for several reasons.
He thinks it makes no sense that people cling to cash because it constantly loses value — not in the currency markets but due to inflation and rising deficits. People complain every day about how the price of goods and services goes up over time, but few make the connection to the weakening purchasing power of the dollar.
For Kiyosaki, silver and other precious metals are better to hold on to because they are scarce, real, usable assets that don’t get devalued due to inflation as the dollar does.
How You Can Invest in Silver
The easiest way for most investors to own silver is through an exchange-traded fund. Silver ETFs own physical silver and issue shares against its value. These trades in the open market are in line with the market price of silver bullion.
While you won’t ever physically own actual silver by buying an ETF, you also won’t have to worry about storing it, insuring it or losing it. Your investment is also totally liquid, as you can buy or sell it on the stock exchange any time that the market is open.
Kiyosaki, however, doesn’t believe in paper assets like ETFs. As he said, “If you can print it, I don’t want to own it,” referring both to ETF shares and the U.S. dollar.
If you’re going to buy silver, Kiyosaki wants you to own the actual physical metal, in the form of coins, bars or ingots, for example. This way, you can actually hold what you own, and you can use it as money nearly anywhere in the world.
Don’t Put All Your Eggs in One Basket
Although Kiyosaki is a strong believer in the value of silver, even he doesn’t feel as if you should put all of your money into it. Kiyosaki’s overriding investment philosophy is that you should primarily invest in assets that provide you with cash right away, like income-generating real estate.
The reason he is promoting silver in this video is that he feels it’s affordable for the average investor, and he believes that hoarding silver is a much better option than owning cash.
Although not all financial advisors agree with Kiyosaki’s philosophy on precious metals, they generally agree that diversification is a good strategy for most investors. This includes owning a small percentage of assets in precious metals, commodities, real estate and other assets that are beyond the usual stocks, bonds and mutual funds.
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