An ardent critic of fiat, Robert Kiyosaki is best known as an avid investor in Bitcoin (BTC) and precious metals. 

However, the author of Rich Dad Poor Dad is heavily invested in another highly expensive commodity — Wagyu cattle.

The entrepreneur first had the idea of investing in cattle in 2022, when his friend moved to Wyoming and bought a large ranch.

While Kiyosaki has a reputation for inaccurately forecasting future recessions and financial crashes, he might be on to something with this particular asset pick, as cattle prices hit an all-time high of approximately $240 on Monday, August 25.

Cattle price. Source: Barchart

Cattle prices skyrocket

The record-high prices are coinciding with the growing appetite for beef at a time when U.S. beef production is declining and the national herd is shrinking to its lowest levels since 1973, according to a July report by the U.S. Department of Agriculture (USDA)

The shrinkage likely stems from ranchers cutting back on breeding herds amid soaring feeding costs and high cattle prices, creating a somewhat circular cause-and-effect pattern. 

Tariffs have also started to contribute to the squeeze, as a 50% tariff on Brazilian beef, which accounts for almost one quarter of U.S. imports, has been pushing prices even higher in August.

Also notable are unfavorable weather conditions, in particular multi-year drought periods in key cattle-producing states, According to the Executive Director of the Washington State Beef Commission, Jackie Madill. 

As Madill stated in an interview with Komo News, ranchers can’t sustain large herds, which feeds directly into the supply shortages that lead to increased prices.

Featured image via Shutterstock