Gold silver or Bitcoin Gold, silver, and bitcoin have delivered spectacular returns over the past year. While Robert Kiyosaki calls them “real money” and a shield against inflation, Warren Buffett calls gold and bitcoin unproductive assets. Their contrasting views highlight two very different investment philosophies—one focused on inflation-proof assets, the other on value-driven businesses.
Gold, silver and bitcoin — all three have given tremendous returns in the last one year. If we look at the data, the price of gold (99.9 purity) has jumped by almost 40% during this period — it is now trading at more than Rs 1 lakh per 10 grams. Silver is trading at around Rs 1,16,000 per kg, which is a gain of more than 44% in one year. Bitcoin has done wonders
At a time when the stock markets are grappling with several challenges like trade war, geopolitical tensions and policy uncertainties of central banks, investors are turning to safe and alternative assets. But the big question is which of these assets should be chosen? If you take a lesson from the wisdom of Robert Kiyosaki and Warren Buffett, you will find the answer surprisingly interesting.
Robert Kiyosaki thinks gold, silver and bitcoin are “real money”.
Robert Kiyosaki, best known as the author of the international best-selling book ‘Rich Dad Poor Dad’, has long warned that saving cash is the biggest mistake. Gold silver or Bitcoin He says that as inflation rises, the real value of fiat currencies falls. He calls these currencies, such as the dollar, “fake money”.
According to him, real money is gold, silver and bitcoin. Kiyosaki believes that inflation is government theft. He argues that when governments constantly print money, the purchasing power of the currency decreases. This affects the poor and the middle class the most because all their savings are in cash or bank accounts. Gold silver or Bitcoin On the other hand, rich people, who invest their wealth in fixed assets like real estate, gold, oil or stocks, become even richer due to inflation.
That is why Kiyosaki repeatedly advises people to invest their savings in real assets instead of keeping them only in cash, so that inflation can be avoided and the real value of the assets is protected.
Current market trends confirm his thinking
- Gold and silver gave more than 40% return in a year.
- Bitcoin jumped more than 100%.
- The purchasing power of fiat currencies has weakened.
According to Kiyosaki, Bitcoin is the new age digital gold today, while gold and silver have been reliable for centuries. According to him, if you want safety of wealth and protection from inflation, then you should invest in these three assets.
What does Warren Buffett think about these three assets – gold, silver or bitcoin?
Buffett, who is one of the greatest investors the world has ever seen and whose wisdom as an investor is considered like a bible in the investment world, believes exactly the opposite of Kiyosaki’s advice. Buffett – also known as the ‘Sage of Omaha’ – believes gold is worthless, silver is fine, bitcoin has no real value.
Buffett says gold does nothing, just lies there and stares at you. According to him, an asset creates value only if it is productive, that is, it makes products, provides services or generates cash flow through the business. Gold does none of these.
Buffett says, “Gold is a way of betting on fear for the long term”. Gold silver or Bitcoin He believes that people who buy gold are essentially betting on fear.
He has, however, invested in silver. They say this is because silver has many industrial uses – from electronics, solar panels, medical equipment to jewellery. That is, it is not only a precious metal, but also a useful metal.
As far as Bitcoin is concerned, Buffett has a very strict opinion. He believes that Bitcoin or Cryptocurrency is not associated with any productive activity. It neither creates business nor provides service. For him, investment means shares of companies that have products, customer base and management. Therefore, Bitcoin does not match his investment philosophy.
Real estate and equities: Views of both giants
Kiyosaki is a big supporter of real estate investing. Gold silver or Bitcoin He believes it gives you both cash flow and wealth. He considers equity markets “more risky” and sees limited opportunities there.
Buffett, on the other hand, believes less in real estate and more in equity markets. His entire philosophy is based on value investing – investing in undervalued companies and waiting for the long term.
Looking at today’s market situation, equity volatility and interest rate uncertainty have made investors cautious. Real estate has become expensive in many places, although for investors like Kiyosaki it is still a “durable asset”.
So what should investors do?
In today’s scenario, both Kiyosaki and Buffett suggest different paths:
Kiyosaki would say: buy gold, silver and bitcoin – these will protect you from inflation and government policies.
Buffett would say: stay away from gold and bitcoin, and invest in silver or productive equity companies.
The best path for investors is probably the middle way. If you want protection and safety from inflation, you can have gold and silver in your portfolio (and even invest a little in bitcoin if you can take the risk). But if you want long-term growth and cash flow, you may be better off choosing strong equities or industrial assets like Buffett.
Summary
In today’s world, where gold, silver and bitcoin are at record highs, equity markets are volatile. Kiyosaki would tell you that real assets are the only real security, while Warren Buffett would still say ‘choose assets that create value’.
Disclaimer:
The views, facts and suggestions given above are for informational purposes only. These should not be considered investment advice in any way. Investments in gold, silver, bitcoin or any other asset class are subject to risk. Remember, past performance is not an indication of future results. Readers are advised to consult a certified financial advisor before making any investment decision.