Expert predictions for a correction in the US stock market are common these days.
But thanks to high inflation rates, Rich daddy, poor daddy Author Robert Kiyosaki calls for something much worse.
“Inflation is taking the poor away. Inflation makes the rich richer, ”he tweeted last week. “Prepare yourself: giant crash then new depression. “
This is not the first time that Kiyosaki has sounded the alarm.
In September, he told Kitco News that “the biggest crash in world history” would occur in October. While that prediction didn’t even turn out to be correct – the S&P 500 climbed 6.9% last month – Kiyosaki isn’t retreating from its ultra-bearish position.
In fact, the famous author reiterated his belief that there are currently only three “smart” investments to buy: Gold, Silver and Bitcoin.
Let’s take a look at this trio of safe havens. They might be worth buying with some of your remaining pennies.
“I love Bitcoin because I don’t trust the Fed, the Treasury, or Wall Street,” Kiyosaki tweeted last month.
Many see the rise of Bitcoin as a reflection of people’s growing distrust of fiat currency. Unlike fiat money, Bitcoin cannot be printed out of thin air. Instead, the number of bitcoins is capped at 21 million by mathematical algorithms.
Since the start of the year, the price of Bitcoin has already more than doubled.
Investors can gain exposure to the world’s largest cryptocurrency through the ProShares Bitcoin Strategy ETF. Companies that have linked to the crypto market, like Coinbase and MicroStrategy, present another option to capitalize on the crypto boom.
Or, you can buy Bitcoin directly. Today, many exchanges charge up to 4% commission fees just for buying and selling cryptos. But some investment apps charge 0%.
And it is not necessary to buy an entire part. You can start with as little as $ 1.
Many call crypto the new gold. But while Kiyosaki highly recommends Bitcoin, he still likes the good old yellow metal as a hedge against an impending downturn.
Gold is the classic safe haven asset. Investors have relied on it to help preserve their wealth for centuries. In times of crisis, the demand for the precious metal often increases.
From 2007 to 2009, when the US stock market fell amid the mortgage crisis, the price of gold jumped over 60%.
You can buy gold coins and bullion at your local bullion store. You can also invest in ETFs such as SPDR Gold Shares.
Another option is gold mining companies. When the price of gold rises, miners like Barrick Gold and Freeport-McMoRan can prosper.
Gold has been trading sideways for several weeks. If you are hesitant to get started right now, some apps may give you a free share of a gold mining stock just for signing up.
Money can live in the shadow of gold and Bitcoin, but Kiyosaki says it shouldn’t be ignored.
In fact, in August, he tweeted that the gray metal was the “best investment with high potential and the least risk”. Currently, silver prices are down about 50% from their all-time highs.
Money can act as a store of value and as protection against rising interest rates and soaring consumer prices.
But it’s more than just a hedge.
Silver is widely used in the production of solar panels. It is also an essential component in the electrical control units of many vehicles. This industrial demand, in addition to its effectiveness as a hedge, makes silver a very attractive asset class for investors.
Just like gold, you can buy silver bullion. You can also invest in silver ETFs like the iShares Silver Trust.
Meanwhile, silver miners such as Wheaton Precious Metals and Coeur Mining are also perfectly positioned for a silver price boom.
The most beautiful of refuges?
Protecting your portfolio from the ravages of inflation will become vital over the next few years.
But you don’t have to limit yourself to conventional asset classes to do so.
If you want to invest in something that has little correlation to the ups and downs of the stock market, consider a real, but overlooked asset like fine art.
Contemporary art has already outperformed the S&P 500 by 174% in the past 25 years, according to the Citi Global Art Market chart.
Investing in art by people like Banksy and Andy Warhol was only an option for the ultra-rich, like Kiyosaki.
But with a new investment platform, you can also invest in iconic artwork, just like Jeff Bezos and Bill Gates do.
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.