Financial educator Robert Kiyosaki has voiced apprehensions regarding Warren Buffett’s recent support for investments in gold and silver, suggesting it may foreshadow an upcoming market downturn.
In a message posted on X, Kiyosaki expressed his surprise at Buffett’s sudden interest in these precious metals. Buffett, who is set to retire as the CEO of Berkshire Hathaway, has historically criticized investing in gold and silver since he took charge of the company in 1970.
Kiyosaki believes that Buffett’s endorsement of gold and silver amidst rising prices and geopolitical uncertainties signals a looming collapse in the stock and bond markets.
During a 2011 CNBC interview, Buffett described gold as an investment that flourishes primarily on market trepidation rather than intrinsic value.
He remarked that its pricing is chiefly driven by public sentiment, with demand and prices surging during unstable times, only to normalize when confidence returns.
In a deviation from his usual stance, Berkshire Hathaway made a small investment in the gold market during the 2020 pandemic, which was largely sold off by year’s end.
Experts point to several factors contributing to the increase in gold prices, such as a declining US dollar, rising inflation, trade tariffs, and the political instability associated with a potential US government shutdown.
Buffett’s pivot in investment philosophy comes at a time of rising inflation concerns within the US economy, compelling investors to seek hedges against currency devaluation and geopolitical risks.
This notable change in Buffett’s investment approach is particularly striking given his long-time skepticism towards precious metals, raising alarms about the robustness of the stock and bond markets.
Kiyosaki’s remarks resonate with these worries, implying that investors should brace themselves for possible market disruptions.
The recent rise in gold prices, fueled by a range of factors, further emphasizes the importance for investors to remain alert and diversify their portfolios in order to manage risks.
