Robert Kiyosaki, the author of the best-selling personal finance book ‘Rich Dad Poor Dad,’ offered a word of encouragement for any investors apprehensive about putting their money in gold given the commodity’s current historically high prices above $2,900.
Specifically, taking a break from proclaiming generation-wiping crises have started. Kiyosaki took to X to reveal that one of the experts he tends to believe is the prominent investment banker and lawyer, James (Jim) Rickard.
Rickards is well-known for his exceptionally bullish price targets for the precious metal and, indeed, Rich Dad author claimed that he recently revised his prediction and is now forecasting an incredible price of $27,500 per ounce.
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Even those traders who elect to purchase gold at its press time price of $2,930 would see an 838.57% return as, for example, a $1,000 investment would be worth $9,385.67. Under the circumstances, it is hardly surprising Kiyosaki celebrated the fact he acquired more of the precious metal at $2,900.
Still, as appealing as the price target appears, it is worth pointing out that the way Robert Kiyosaki relayed it is, at best, misleading.
Why investors should take Kiyosaki’s advice with a bag of salt
To begin with, the author’s claim that Rickards ‘just upped his prediction’ is factually incorrect as the $27,533 forecast can be dated to a May 13, 2024 article in the Daily Reckoning.
Additionally, rather than the result of the current trends, the price target is the result of a model assuming a new gold standard with the American dollar 40% backed by the precious metal and is, therefore, more of an estimate of the commodity’s fair price under the circumstances that a value forecast.
Simultaneously, as Kiyosaki himself revealed in the X post, Rickards previously set his sights at $15,000 gold in 2026, which, while not impossible at press time, appears exceptionally unlikely unless a major disruption takes place.
Finally, Kiyosaki’s presentation and advice are somewhat suspect. On the one hand, the author has become known for forecasting numerous catastrophic recessions that are yet to come and has, on many occasions, proclaimed that a crash has started during the 2024 bull market.
The earnestness of Rich Dad’s advice is also somewhat questionable since he, for example, urged his followers to sell their homes in December 2024 to buy Bitcoin despite claiming to own as many as 15,000 himself.
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