Renowned author and Rich Dad Poor Dad co-author, Robert Kiyosaki, has raised concerns about the safety of fiat money, urging investors to protect themselves from central bankers. In his book, Rich Dad Poor Dad, which has been a New York Times Best Seller for over six years, Kiyosaki emphasizes the need to diversify investments by adding gold, silver, and bitcoin to one's portfolio.
Central Bankers' Gold Buying: A Sign of Trouble?
Kiyosaki highlights the fact that central banks, including the Federal Reserve, have been increasingly buying gold. He believes that this move indicates their lack of faith in fiat money. According to him, central bankers are primarily focused on protecting the banks rather than the interests of individual investors. Therefore, he advises people to become financially savvy and safeguard their wealth by investing in gold, silver, and bitcoin.
Global Surge in Gold Purchases
The World Gold Council reports that central banks worldwide continue to show a strong appetite for gold, with purchases reaching 337 metric tons in the third quarter alone. This has resulted in a record-high total of 800 metric tons purchased this year. The growing trend of central banks acquiring gold further supports Kiyosaki's concerns about the stability of fiat currencies.
Fiat Money: Kiyosaki's Views
Kiyosaki consistently expresses skepticism towards fiat currencies, referring to them as "fake money." In contrast, he considers gold and silver as "God's money" and sees bitcoin as "people's money." He firmly believes that cryptocurrencies, especially bitcoin, are the future of currency and that fiat money is gradually losing its value.
Furthermore, Kiyosaki has been vocal about his predictions regarding the U.S. dollar. He blames the Federal Reserve for causing inflation and damaging the U.S. economy. He foresees the demise of the USD and suggests that investors prepare themselves accordingly. Additionally, he believes that when the Federal Reserve introduces a central bank digital currency (CBDC), bitcoin will become even more valuable.
Share Your Opinion
Do you agree with Robert Kiyosaki's assessment that fiat money is unsafe? Let us know your thoughts in the comments section below. As the world of finance continues to evolve, it is essential to stay informed and make informed investment decisions.
Frequently Asked Questions
How much of your portfolio should you hold in precious metals
To answer this question, we must first understand what precious metals are. Precious elements are those elements which have a high price relative to other commodities. This makes them extremely valuable for trading and investing. Gold is currently the most widely traded precious metal.
But, there are other types of precious metals available, including platinum and silver. The price of gold tends to fluctuate but generally stays at a reasonably stable level during periods of economic turmoil. It is not affected by inflation or deflation.
All precious metals prices tend to rise with the overall market. But they don't always move in tandem with one another. If the economy is struggling, the gold price tends to rise, while the prices for other precious metals tends to fall. Investors expect lower interest rates which makes bonds less appealing investments.
Contrary to this, when the economy performs well, the opposite happens. Investors choose safe assets such Treasury Bonds over precious metals. They are more rare, so they become more expensive and less valuable.
Therefore, to maximize profits from investing in precious metals, you must diversify across multiple precious metals. It is also a good idea to diversify your investments in precious metals, as prices tend to fluctuate.
How do I open a Precious Metal IRA
It is important to decide if you would like an Individual Retirement Account (IRA). If you do, you must open the account by completing Form 8606. Then you must fill out Form 5204 to determine what type of IRA you are eligible for. This form should be completed within 60 days after opening the account. Once this has been completed, you can begin investing. You might also be able to contribute directly from the paycheck through payroll deduction.
Complete Form 8903 if your Roth IRA option is chosen. Otherwise, the process will look identical to an existing IRA.
To qualify for a precious Metals IRA, there are specific requirements. The IRS says you must be 18 years old and have earned income. For any tax year, your earnings must not exceed $110,000 ($220,000 for married filing jointly). You must also contribute regularly. These rules apply regardless of whether you are contributing directly to your paychecks or through your employer.
A precious metals IRA can be used to invest in palladium or platinum, gold, silver, palladium or rhodium. However, you won't be able purchase physical bullion. This means you won’t be able to trade stocks and bonds.
You can also use your precious metals IRA to invest directly in companies that deal in precious metals. Some IRA providers offer this option.
There are two major drawbacks to investing via an IRA in precious metals. First, they don't have the same liquidity as stocks or bonds. This makes them harder to sell when needed. Second, they don’t produce dividends like stocks or bonds. You'll lose your money over time, rather than making it.
What is the tax on gold in an IRA
The fair value of gold sold to determines the price at which tax is due. You don't have tax to pay when you buy or sell gold. It isn't considered income. If you sell it after the purchase, you will get a tax-deductible gain if you increase the price.
As collateral for loans, gold is possible. Lenders try to maximize the return on loans that you take against your assets. For gold, this means selling it. However, there is no guarantee that the lender would do this. They may just keep it. Or they might decide to resell it themselves. Either way, you lose potential profit.
So to avoid losing money, you should only lend against your gold if you plan to use it as collateral. You should leave it alone if you don't intend to lend against it.
What are the pros & cons of a Gold IRA?
The main advantage of an Individual Retirement Account (IRA) over a regular savings account is that you don't have to pay taxes on any interest earned. An IRA is a good choice for those who want a way to save some money but don’t want the tax. But, this type of investment comes with its own set of disadvantages.
For example, if you withdraw too much from your IRA once, you could lose all your accumulated funds. You might also not be able to withdraw from your IRA until the IRS deems you to be 59 1/2. If you do decide to withdraw funds from your IRA, you'll likely need to pay a penalty fee.
Another disadvantage is that you must pay fees to manage your IRA. Many banks charge between 0.5%-2.0% per year. Other providers charge monthly management fees ranging from $10 to $50.
If you prefer to keep your money outside a bank, you'll need to purchase insurance. In order to make a claim, most insurers will require that you have a minimum amount in gold. It is possible that you will be required to purchase insurance that covers losses of up to $500,000.
If you choose to have a gold IRA you will need to establish how much gold to use. Some providers restrict the amount you can own in gold. Others allow you the freedom to choose your own weight.
Also, you will need to decide if you want to buy physical gold futures contracts or physical gold. Gold futures contracts are more expensive than physical gold. Futures contracts provide flexibility for purchasing gold. They enable you to establish a contract with an expiration date.
You will also have to decide which type of insurance coverage is best for you. Standard policies don't cover theft protection, loss due to fire, flood or earthquake. It does provide coverage for damage from natural disasters, however. You might consider purchasing additional coverage if your area is at high risk.
In addition to insurance, you'll need to consider the cost of storing your gold. Insurance won't cover storage costs. In addition, most banks charge around $25-$40 per month for safekeeping.
Before you can open a gold IRA you need to contact a qualified Custodian. A custodian helps you keep track of your investments, and ensures compliance with federal regulations. Custodians don't have the right to sell assets. Instead, they must keep your assets for as long you request.
After you have decided on the type of IRA that best suits you, you will need to complete paperwork detailing your goals. Information about your investments such as stocks and bonds, mutual fund, or real property should be included in your plan. You should also specify how much you want to invest each month.
After completing the forms, send them along with a check or a small deposit to your chosen provider. After reviewing your application, the company will send you a confirmation mail.
Consider consulting a financial advisor when opening a golden IRA. A financial planner is an expert in investing and can help you choose the right type of IRA for you. They can help reduce your expenses by helping you find cheaper alternatives to buying insurance.
- Contribution limits$6,000 (49 and under) $7,000 (50 and up)$6,000 (49 and under) $7,000 (50 and up)$58,000 or 25% of your annual compensation (whichever is smaller) (lendedu.com)
- If you accidentally make an improper transaction, the IRS will disallow it and count it as a withdrawal, so you would owe income tax on the item's value and, if you are younger than 59 ½, an additional 10% early withdrawal penalty. (forbes.com)
- (Basically, if your GDP grows by 2%, you need miners to dig 2% more gold out of the ground every year to keep prices steady.) (smartasset.com)
- You can only purchase gold bars at least 99.5% purity. (forbes.com)
- The price of gold jumped 131 percent from late 2007 to September 2011, when it hit a high of $1,921 an ounce, according to the World Gold Council. (aarp.org)
- Yahoo Finance – Barrick Gold Corporation Stock Price, News & Quote – Barrick Gold Corporation (GOLD).
Tips for Investing Gold
One of the most sought-after investment strategies is investing in gold. This is because there are many benefits if you choose to invest in gold. There are several options to invest in the gold. Some people buy physical gold coins, while others prefer investing in gold ETFs (Exchange Traded Funds).
Before buying any type gold, it is important to think about these things.
- First, find out if your country allows gold ownership. If your country allows you to own gold, then you are allowed to proceed. You can also look at buying gold abroad.
- The second is to decide which kind of gold coin it is you want. There are many options for gold coins: yellow, white, and rose.
- Thirdly, you should take into consideration the price of gold. Start small and move up. It is important to diversify your portfolio whenever you purchase gold. Diversifying assets should include stocks, bonds real estate mutual funds and commodities.
- You should also remember that gold prices can change often. It is important to stay up-to-date with the latest trends.
By: Kevin Helms
Title: Is Fiat Money Safe? Robert Kiyosaki Warns Against Central Bankers
Sourced From: news.bitcoin.com/robert-kiyosaki-fiat-money-isnt-safe-investors-must-protect-themselves-from-central-bankers/
Published Date: Wed, 15 Nov 2023 03:00:41 +0000
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