'The biggest crash in history': Robert Kiyosaki warns that millions of 401(k)s and IRAs will be 'toast' — says there's 'no time to play Russian Roulette.' Here's what he likes for protection
The U.S. stock market made a strong recovery in 2023, with the S&P 500 surging over 24%. However, “Rich Dad Poor Dad” author Robert Kiyosaki was sounding the alarm about potential dangers ahead.
“Bank Credit just sold off like 2008. Get some cash out of banks as you need cash,” he said in a mid-December post on X, formerly known as Twitter. “This may be the start of the biggest crash in history. Hope I am wrong yet no time to play Russian Roulette with your life.”
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In another X post later that same day, the author referred to his 1997 book’s predictions, which later came to fruition.
“Please remember my warning in Rich Dad Poor Dad published in 1997 predicting ‘Savers are losers’ and ‘Your home is not an asset’ which came true in 2008,” he wrote. “Watch for my next warning. The S & P is next which will toast millions of 401ks and IRAs.”
Given the extensive exposure many people have to the stock market through their retirement savings, a severe downturn in the S&P 500 could be devastating. During the market sell-off in 2022, CBS News reported that 401(k) and IRA plan participants experienced an estimated loss of around $3 trillion.
Despite these ominous predictions, Kiyosaki has offered some advice for navigating the potential crisis.
“Buy gold, silver, Bitcoin while you still can,” he suggested.
Let’s take a quick look at this trio of assets.
Gold and silver
Precious metals — particularly gold and silver — have long been considered a popular hedge against inflation. The reason is simple: They can’t be printed out of thin air like fiat money.
Kiyosaki has long been a fan of gold and first purchased the yellow metal in 1972. He has explained in the past it’s because he doesn’t “trust” the Federal Reserve, which controls the supply of money. He made headlines recently when he revealed he's $1.2 billion in debt. "I use debt as money and don’t save cash because in 1971 the dollar became debt," he said in an Instagram video. President Richard Nixon put an end to dollar convertibility to gold in 1971, making it a free-floating currency.
In October, Kiyosaki predicted, “Gold will soon break through $2,100 and then take off. You will wish you had bought gold below $2,000. Next stop gold $3,700.”
Kiyosaki likes silver, too. “Silver from $23 to $68 an ounce,” he said, projecting major upside for the gray metal.
The price of gold has climbed close to 10% in the last year, while silver has fallen around 3%.
Today, there are many ways to gain exposure to gold and silver, but Kiyosaki prefers to just buy the metals directly. “I do not touch paper gold or silver ETFs. I only want real gold or silver coins,” he wrote in 2022.
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Bitcoin
The world’s largest cryptocurrency made a massive comeback in 2023.
But investors should not forget just how volatile it can be.
In November 2021, bitcoin reached a high of $68,990. Today, it’s hovering around $45,000.
Kiyosaki, however, doesn’t seem bothered by the massive swings.
When the virtual currency was testing $30,000 in October, he predicted, “Next stop Bitcoin $135,000.”
If Kiyosaki is right in his prediction, it would imply an upside of almost 200% from where the cryptocurrency sits today.
It’s very easy to buy bitcoin these days. There are many online exchanges, brokers and even ATMs to purchase from. Be warned, they can charge up to 4% in commission fees, so look for ones that charge low or even zero commissions.
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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
