In the tumult of the financial markets, investors often turn to analysts, researchers — and most importantly, other successful investors for cues, ideas, and guidance.
Robert Kiyosaki is one such investor. The famed author of ‘Rich Dad Poor Dad’ is a noted critic of fiat currencies, which he has frequently referred to as ‘fake money’.
The finance guru is a staunch precious metals bull — advocating for gold and silver as stores of value. His investment strategy is rounded out by cryptocurrencies and real estate — the latter of which he claims was his original path to wealth.
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As popular as he is, Kiyosaki attracts controversy. To call him an alarmist would be putting it mildly — Kiyosaki predicts catastrophic crashes with surprising regularity and little accuracy, and his heavy use of debt, as well as the bankruptcy of his company, have garnered widespread criticism.
Ultimately, the proof lies where the rubber meets the road — over the course of 2024, Kiyosaki’s portfolio netted a return of approximately 76.03% — far outpacing the S&P 500’s gain of 27.35% in the same period. Despite the pullback that silver prices have seen since late October of 2024, the author has recently reiterated his bullish stance on the shining metal.
Kiyosaki urges investors to buy silver dip before prices take off
A prolific poster on social media platform X, Kiyosaki opined that ‘silver is going to take off’ in a January 17 post. The investor further clarified his statements by pointing to the interplay of low supply and high demand for the commodity. Lastly, he urged readers to buy now — before prices rise once again.
In comparison to 2023, 2024 saw a 1% reduction in total silver supply — on the other hand, overall demand rose by 2%, per The Silver Institute.
Don’t let the figures, which appear modest at first glance, fool you — Kiyosaki’s thesis is correct. The silver market often operates on a thin margin between supply and demand — a 3% discrepancy is quite meaningful, particularly if the current trend holds going forward.
So, what about silver prices? The spot price of silver hit a yearly peak on October 28 before receding — but the financial markets reacted earlier. The iShares Silver Trust (NYSE: SLV) exchange-traded fund (ETF) reached a peak price of $31.4 on October 22, 2024.
By press time on Friday, January 17, the price of SLV had pulled back to $28.04 — equating to a 10.7% drop.
Over the course of the last year, silver’s nearly 35% gains have even outperformed gold — buoying interest in the commodity as a speculative asset. Industrial demand in emerging economies, as it relates to electronics and renewable energy, is another boon — as is the little-known demand for the precious metal by militaries.
Once all is said and done, Kiyosaki’s advice is grounded, well-reasoned, and realistic — and while a dramatic move the upside isn’t guaranteed, silver is well-positioned to appreciate in price.
Featured image via Cavaleria Com YouTube
