In a recent interview on YouTube, Robert Kiyosaki, the author of Rich Dad Poor Dad, shared his insights on the US Federal Reserve’s record purchases of gold over the past year. The central bank’s actions are likely in response to the country’s spiralling national debt, which has reached nearly $36 trillion and is accruing over $1 trillion in interest for the first time in history. Kiyosaki expressed his concerns about the government’s increasing debt and its reliance on printing more money and lowering interest rates to address the issue. He emphasized that this approach of paying off debt with “fake money” is unsustainable in the long run.
Kiyosaki has been a long-time advocate for investing in assets like gold and silver due to their high exchangeability, universal demand, limited supply, and negative correlation to stock markets. Gold, in particular, has been considered a symbol of wealth since ancient times and has historically retained its value during market upheavals. Its intrinsic store of value makes it a popular choice for hedging against inflation and economic uncertainties.
While gold prices have reached record levels this year, exceeding $2,790 per ounce, there was a sudden pullback following President-elect Donald Trump’s election victory. However, experts believe that the Trump Administration could potentially boost gold prices in the future. As of November 18, gold was trading at $2,597 per ounce.
Goldman Sachs analysts are optimistic about the future of gold prices, predicting that the metal will continue to break records next year. They have identified gold as one of the top commodity trades for the upcoming year, with a target price of $3,000 per ounce by December 2025. The analysts attribute their bullish outlook to the Fed’s increased gold purchases, interest rate cuts, and rising demand for the metal from exchange-traded funds (ETFs).
Geopolitical tensions have also played a significant role in driving the rally in gold prices. Ongoing conflicts such as the Israel-Hamas war and Russia’s invasion of Ukraine have heightened global uncertainties and increased the appeal of gold as a safe haven asset. The escalation of these conflicts has raised concerns about the potential for a global war, further supporting gold prices.
It is important to note that the information provided in this article is for informational purposes only and should not be considered as investment advice. Investors are encouraged to conduct their own research or consult with a financial advisor before making any investment decisions. It is crucial to remember that all investments carry inherent risks, and past performance is not indicative of future returns.
