American entrepreneur and author of the best-selling “Rich Dad Poor Dad” series Robert Kiyosaki has criticized successful investor Warren Buffett’s thoughts on not investing in gold.
Like politics, the world of finance is not without drama, and Kiyosaki has been in the media spotlight for disapproving of Buffett’s attitude toward investing in gold. Buffett, the founder of Berkshire Hathaway, a multinational conglomerate, has often expressed the belief that investing in gold is not advisable.
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In a 2011 letter to shareholders, Buffett wrote: “Gold has two major flaws: it is not of much use and is not for reproduction. If you own one ounce of gold for eternity, you will still own one ounce at the end .” Instead, Buffett emphasizes investing in productive, income-generating assets such as real estate, stocks and bonds.
However, Kiyosaki strongly disagrees with the Oracle of Omaha and criticized the investor during an interview with Vladislav Lyubovny. In the interview, Kiyosaki held a silver coin in his hand and said, “This is a silver dollar from 1964. So this little silver coin is worth $10 today. I can go to any coin dealer and change it for $10. So FU Buffett .”
Unlike Buffett, Kiyosaki is a self-proclaimed gold bug, famous for his advocacy of gold investments. Kiyosaki often promotes the use of gold investments as a hedge against inflation and economic uncertainty. In April this year, Kiyosaki warned of financial woes to hit the country, writing on social media platform X: “Everything bubble, stocks, bonds, real estate is about to crash. US debt is rising by $1 trillion every 90 days. Save yourself. Please buy more real gold, silver, Bitcoin.”
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Buffett once said, “The idea of taking something out of the ground, you know, in South Africa or somewhere else, and then shipping it to the United States and putting it in the ground, you know, in the Federal Reserve of New York, does not. doesn’t seem like a great asset to me.” For Buffett, gold’s biggest shortcoming is that it is non-reproductive in the sense that it doesn’t generate income. During an appearance on CNBC’s Squawk Box in 2011, Buffett explained that if he were given the opportunity to choosing between a “cube of gold of 20 meters” and all the agricultural land in the country, he would choose the agricultural land.
Kiyosaki acknowledged that Buffett is wildly successful, saying, “He’s good at stocks. He’s a very smart guy. He’s a multi-billionaire,” but there’s one reason Kiyosaki doesn’t take investor advice. Kiyosaki does not trust Buffett because according to him, unlike Kiyosaki, he does not invest his own personal money in investments. “He didn’t invest his money. He’s investing your money,” Kiyosaki said. However, the validity of this statement from Kiyosaki may be questioned, as Buffett noted in a 2011 letter to shareholders that more than 98% of his wealth is currently in Berkshire Hathaway stock.
Gold has traditionally been seen as a safe investment. Even Buffett admits this. James Rickards, former National Security Advisor to the Pentagon and CIA, has revealed that the price of gold is expected to continue to rise by 1,400% between 2015 and 2025, bringing the price to $15,000 per pound. With gold prices rising and gold reserves dwindling, Rickards is urging people to buy gold before 2025 so they can enjoy the profits once the price rises.
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This article Robert Kiyosaki and Warren Buffett disagree about investing in gold: ‘He didn’t invest his money; He invests your money.’ originally appeared on Benzinga.com
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