Today, experts predict a correction in the U.S. stock market is common.
However, due to high inflation, rich dad poor dad Author Robert Kiyosaki calls for worse things.
“Inflation robs the poor. Inflation makes the rich richer,” he tweeted last week. “Prepare: A huge crash, then a new depression.”
This isn’t the first time Kiyosaki has raised the alarm.
In September, he told Kitco News that the “biggest crash in the history of the world” would happen in October. While that prediction isn’t even close to being correct — the S&P 500 rose 6.9% last month — Kiyosaki hasn’t given up on his extremely bearish stance.
In fact, the famous author reiterated his belief that there are only three “smart” investments to buy right now: gold, silver, and bitcoin.
Let’s take a quick look at these three havens. They might be worth buying with some of your pennies left over.
“I love Bitcoin because I don’t trust the Fed, Treasury or Wall Street,” Kiyosaki tweeted last month.
Many believe that Bitcoin’s rise reflects a growing distrust of fiat currencies. Unlike fiat currency, bitcoin cannot be printed out of thin air. Instead, mathematically, the number of bitcoins is capped at 21 million.
Year-to-date, the price of Bitcoin has more than doubled.
Investors can gain exposure to the world’s largest cryptocurrency with the ProShares Bitcoin Strategy ETF. Companies that associate themselves with the crypto market — like Coinbase and MicroStrategy — offer another option to capitalize on the crypto craze.
Alternatively, you can buy bitcoins directly. Today, many exchanges charge up to 4% commission just for buying and selling cryptocurrencies. But some investing apps charge 0%.
And there’s no need to buy a whole coin. You can start with $1.
Many people refer to cryptocurrencies as the new gold. But while Kiyosaki strongly recommends bitcoin, he still likes the ancient gold as a hedge against an impending recession.
Gold is a classic safe-haven asset. Investors have relied on it for centuries to help protect their wealth. During times of crisis, demand for precious metals tends to rise.
From 2007 to 2009 — when U.S. stocks tumbled amid the mortgage crisis — gold prices soared more than 60%.
You can buy coins and bars at your local bullion store. You can also invest in ETFs such as SPDR Gold Shares.
Gold mining companies are another option. Miners like Barrick Gold and Freeport-McMoRan can thrive when gold prices rise.
Gold has been trading sideways for several weeks. If you’re hesitant to join now, some apps may offer you a free share of Gold Mines just for signing up.
Silver may live in the shadow of gold and bitcoin, but Kiyosaki says it shouldn’t be ignored.
In fact, back in August, he tweeted that the gray metal is “the best, least risky, high-potential investment.” Currently, silver prices are down about 50% from their all-time highs.
Silver can act as a store of value and a hedge against rising interest rates and soaring consumer prices.
But it’s not just hedging.
Silver is widely used in the production of solar panels. It is also a key component of many vehicle electrical control units. This industrial demand, in addition to its effectiveness as a hedge, has made silver an asset class of great interest to investors.
Just like gold, you can buy silver bars. You can also invest in silver ETFs such as iShares Silver Trust.
Meanwhile, silver miners such as Wheaton Precious Metals and Coeur Mining are also perfectly positioned for a surge in silver prices.
The best safe haven?
Protecting your portfolio from inflation will become critical over the next few years.
But you don’t have to limit yourself to traditional asset classes.
If you want to invest in something that has little to do with the rise and fall of the stock market, consider a real but overlooked asset like art.
Contemporary art has outperformed the S&P 500 by 174% over the past 25 years, according to the Citi Global Art Market Chart.
People like Banksy and Andy Warhol investing in art used to be just an option for the super-rich like Kiyosaki.
But with a new investing platform, you too can invest in iconic artwork like Jeff Bezos and Bill Gates.
This article is for information only and should not be considered advice. It does not provide any kind of guarantee.