Safe havens are hard to come by these days.
Stocks are down, Bitcoin is in a slump, and even the recently red-hot real estate market appears to be cooling due to the Fed’s aggressive rate hikes.
While it might be tempting to hide in cash, Rich Dad Poor Dad author Robert Kiyosaki thinks it could be the perfect time to “get richer.”
In a tweet on Sunday, Kiyosaki explains how he made a fortune by going against the herd during the Great Depression.
“2008 was a great time to get rich. Everything went up for sale. Borrowed millions of dollars buying real estate opportunities,” he writes.
The author was also asking for a big crash.
“In 2013 I published the Rich Dad Prophecy predicting a MAJOR crash is coming. THIS CRASH IS HERE. Millions will disappear.”
Here’s a look at two advantages that might help you weather this storm.
The renowned author is a longtime proponent of investing in precious metals.
Gold and silver have helped investors preserve their wealth for centuries. They cannot be printed out of thin air like token money and their value is largely unaffected by economic events around the world.
But this time, Kiyosaki favors one over the other, and it’s about the gold-to-silver ratio — which simply refers to the number of ounces of silver it takes to buy one ounce of gold.
“FYI Gold Silver Ratio the oldest tracking value in history: For the 20th century the gold:silver ratio was 47:1…47 oz silver=1 oz gold. Today 85:1,” he tweeted last month.
In other words, the current gold to silver ratio indicates that gold (silver) is relatively expensive (cheap) historically.
Kiyosaki also prefers silver because of its industrial use.
“Silver is an industrial precious metal. Gold is not.”
The gray metal is widely used in the production of solar panels and is also a critical component in many vehicle electrical control units. Industrial demand – plus hedging real estate – makes silver a very interesting asset class for investors.
There are many silver miners who are well positioned for a silver price boom. Companies like Pan American Silver (PAAS), Wheaton Precious Metals (WPM), and First Majestic Silver (AG) should provide a good starting point for some research.
But Kiyosaki suggests a simpler approach – just buy the metal directly.
“I don’t touch paper gold or silver ETFs,” he says. “For $25 anyone can buy a silver coin.”
So maybe it’s time to visit your local gold shop.
To be sure, Kiyosaki isn’t exactly claiming that silver is immune to the current market turmoil.
“All markets are crashing: Real Estate, Stocks, Gold, Silver Bitcoin,” he tweeted last week.
But the power of one asset is well known right now: oil.
It’s not necessarily good for your wallet, because higher oil prices mean you pay more for gas. “Middle class wiped out by higher oil inflation,” Kiyosaki recently tweeted.
Of course, if you have investments with exposure to the energy sector, your portfolio in 2022 will likely look better than those that don’t.
The price of crude oil fell in June and July, but is still up 34% year-to-date.
As you might expect, strong oil prices benefit oil producers. So far this year, investors have enjoyed big returns from names like Chevron (35%), Exxon Mobil (51%) and ConocoPhillips (50%).
That said, investing in commodities is a highly volatile venture.
If you prefer to hedge against inflation without the extreme ups and downs of commodity-related stocks, take a look at some under-the-radar alternative assets.
This article provides information only and should not be construed as advice. Provided without warranty of any kind.