Robert Kiyosaki "Investing in Gold & Silver"
‘Protect your finances by investing in gold and silver and placing your money in something you can’t print more of’
Robert Kiyosaki, the author of Rich Dad, Poor Dad, made headlines last week when he said it may be the last time to buy gold and silver at low prices. He expects the stock market to crash, sending gold to US$3800 and silver to US$75. He sees stock, bond and real estate markets tumbling as the US Fed continues to hike interest rates to fight inflation. He says the US Dollar is ‘toast’. Kiyosaki, a self-confessed gold and silver bug believes we are heading for turbulent times once more – markets are highly volatile right now – despite the UK FTSE100 ending last week at a 3 year high and all US indexes last week by over 2%, there is real fear that a storm is around the corner and that these are false horizons.
Currency FX differences distort gold and silver’s real NZ performance
We’ve heard it now for months – the strength of the US$ has had an adverse effect on the price of gold. But there’s a twist when FX (foreign exchange) rates are factored in – for some global currencies. Gold and silver prices are quoted in US$ terms globally – but when compared in other currencies, the outcome can be strikingly different. Take for example the UK Pound Sterling. The 2022 first half performance (January to June 2022) of gold in this period was +0.6% in US$ terms, But when factored into the Pound, gold performed well in the period and was up 12.2%. The Russian Ruble gold price fell 26.6% in the same timescale. Almost like a Rubik’s Cube, with multiple options at different moments, the combined effect of 2 currencies and the gold price, all driven by independent factors, create the output. How about compared to the NZ$? In 2022, a combination of a weak NZ$, a strong US$ and a flat gold price (in US$ terms) led to an increase in the price of gold in NZ$ of 10.33%. The figure was higher for silver at 12.88%. For 2023, the forecasts are for a weaker US$, a stronger gold price and a strengthening NZ$ (vs the US$). Although not an exact science, the likelihood for both gold and silver for Kiwi investors over the coming months is that we will be entering a new ‘buyers market’. Robert Kiyosaki, the author of Rich Dad, Poor Dad, made headlines last week when he said it may be the last time to buy gold and silver at low prices. Here are some nuggets from the around the world: