Robert Kiyosaki, author of "Rich Dad Poor Dad," stated that silver breaking above $70 could serve as a warning sign of accelerating inflation and a weakening dollar. He also predicted that silver prices will rise to $200 by 2026, highlighting concerns over the declining purchasing power of fiat money.
Robert Kiyosaki's Warning About Silver and Inflation
In his posts, Kiyosaki noted that silver above $70 may signal the start of a much more serious inflationary trend and a long-term weakening of the dollar. In this context, he suggests viewing precious metals as capital protection and has repeatedly urged investing in gold, silver, and bitcoin instead of cash and bonds.
Current Market Trends for Silver
The market has already responded: the spot price of silver reached $71.94 per ounce, with a year-to-date increase of 142%. This rise is reportedly supported by a combination of strong investment demand, tightening supplies, and significant industrial use in solar panels, electric vehicles, and electronics.
Impact of Rising Silver Prices on Investments
The increase in silver is seen as a potential hedge against cash devaluation, making it attractive to some investors seeking to preserve real value. Kiyosaki believes that the prolonged weakness of fiat currencies makes portfolios heavily weighted in cash and bonds vulnerable.
Broader Economic Context
In his assessment, Kiyosaki links silver's price movement to the loss of purchasing power of fiat money and factors driving demand for the metal as both an investment and industrial resource. He emphasizes that the combination of these factors creates a favorable environment for further price growth according to his forecast.
Why This Matters
If you mine and hold proceeds in rubles or dollars, the signal of possible hyperinflation means the real value of your savings could decline faster than usual. While this has minimal direct impact on mining equipment operation, the strategy for storing proceeds and asset allocation is crucial to preserving purchasing power.
What To Do?
Practical steps for miners with 1–1000 devices are straightforward and immediately applicable. First, reconsider the share of cash in your reserves and consider diversifying into assets mentioned by Kiyosaki if it fits your risk tolerance and capabilities.
- Keep part of your funds in assets you consider protection against devaluation (e.g., metals or cryptocurrency), based on your personal risk tolerance.
- Evaluate electricity expenses and operational reserves: with declining purchasing power, it’s important to have a buffer for unforeseen costs.
- Monitor silver prices and industrial demand to understand how sustainable the current rise is; specialized market reviews are helpful for this.
For those wanting to dive deeper into Kiyosaki's views and related forecasts, it’s worth reading his more detailed comments and materials on the topic. It’s also useful to compare explanations of silver price increases with market analysis.
Additionally, you can check related articles where the author discusses risks and strategies in more detail: warns about hyperinflation and why silver prices are rising.