American business owner and author of the bestselling “Rich Dad Poor Dad” series Robert Kiyosaki has criticized successful investor Warren Buffett’s thoughts on not investing in gold.
Like politics, the finance world is not without its drama, and Kiyosaki has come under the media spotlight for slamming Buffett’s stance on gold investing. Buffett, the founder of Berkshire Hathaway, a multinational conglomerate, has often expressed his belief that investing in gold is not advisable.
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In a 2011 letter to shareholders, Buffett wrote, “Gold has two significant shortcomings, being neither of much use nor procreative. If you own one ounce of gold for an eternity, you will still own one ounce at its end.” Instead, Buffett emphasizes investing in productive assets that generate income, such as real estate, stocks, and bonds.
However, Kiyosaki strongly disagrees with the Oracle of Omaha and has criticized the investor during an interview with Vladislav Lyubovny. In the interview, Kiyosaki held up a silver coin in his hand and said, “This, here, is a 1964 silver dollar. So this little silver coin today is worth $10. I can go to any coin dealer and change it for $10. So F U Buffett.”
Unlike Buffett, Kiyosaki is a self-proclaimed gold bug, famous for advocating gold investments. Kiyosaki often promotes using gold investments as a hedge against inflation and economic uncertainty. In April this year, Kiyosaki warned of financial woes to hit the country and wrote on social media platform X, “The EVERYTHING BUBBLE, stocks, bonds, real estate SET to CRASH. U.S. debt increasing by $1 trillion every 90 days. U.S. BANKRUPT. Save yourself. Please buy more real gold, silver, Bitcoin.”
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Buffett once said, “The idea of digging something up out of the ground, you know, in South Africa or someplace and then transporting it to the United States and putting into the ground, you know, in the Federal Reserve of New York, does not strike me as a terrific asset.” For Buffett, the biggest shortcoming of gold is that it is not procreative in the sense that it does not generate income. During an appearance on CNBC’s Squawk Box in 2011, Buffett explained that if given the opportunity to choose between a “67-foot cube of gold” and all the country’s farmland, he would choose the farmland.
Kiyosaki acknowledged that Buffett is wildly successful, saying, “He’s good at stocks. He’s a very smart guy. He’s a multibillionaire,” but there is one reason why Kiyosaki does not take advice from the investor. Kiyosaki does not trust Buffett because, according to him, he does not invest his own personal funds for investment, unlike Kiyosaki. “He didn’t invest his money. He invests your money,” said Kiyosaki. However, the validity of this statement from Kiyosaki may be in question, considering Buffett’s 2011 letter to shareholders noted that more than 98% of his net worth is currently in Berkshire Hathaway stock.
Gold has historically been seen as a safe investment. Even Buffett admits this. James Rickards, former national security advisor for the Pentagon and the CIA, has revealed that gold prices are predicted to keep rising by 1,400% between 2015 and 2025, putting the price at $15,000 per pound. With gold prices rising and gold reserves declining, Rickards urges people to buy gold before 2025 to enjoy the profits once the price rises.
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This article Robert Kiyosaki and Warren Buffett Butt Heads on Gold Investing: ‘He Didn’t Invest His Money; He Invests Your Money.’ originally appeared on Benzinga.com
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