Middle Class Will Get Wiped Out

Rich Dad, Poor Dad

Robert Kiyosaki (author of the famous “Rich Dad, Poor Dad” series of books), and his precious metals adviser Mike Maloney, have some interesting observations and predictions for gold and silver for 2008.

Some choice quotes from the video on YouTube:

Cash is trash. Gold and silver are God’s money, God made it.”

“Historically, throughout time, there’s a depression every 75 years. The last one was in 1930. So we’re right on it, right now. And the rich will get richer and the poor and middle class will get wiped out.”

“If the US dollar has to go back to gold-backed, you’re looking somewhere well north of $6,000/oz.”

“From 1971 to 1980 gold went up 24 times its starting price in 9 years.”

“From 1971 to 1980 silver went up 39 times its starting price in 9 years.”

“If you had just 10% of your net worth in gold and you LOST the other 90%, by 1980 you were 2.4 times richer than you were in 1971. With just 10%!”

“That puts us in the second phase of this gold/silver bull market. Phase 1 is sort of the stealth phase where it’s quiet accumulation. Then the second phase is usually the longest duration and the greatest growth. And the final third phase is the blow-off top where the market just goes vertical.”

“You remember the NASDAQ in the last three months of 1999? It just went vertical. The public and everybody rushed into it. And they all got slaughtered. The herd always comes rushing in at the end, and that’s the time you wanna sell.”

“You don’t wanna hold onto gold and silver forever. You wanna hold onto it until a median-price single family home costs less than 40 oz of gold or less than 500 oz of silver. Then you wanna trade your gold and silver for real estate–cash-flow real estate.”

Note from Scott: You can find the “median price single family home” data here. Look in the right-hand column titled “Housing Indicators.” It’s at $208,600 right now. That’s 224 oz of gold and 11,866 oz of silver.

“There is 8.3 times as much gold today as there is silver. Poland has 25% of the world’s silver.”

Silver is the biggest opportunity I have ever seen. Bigger than real estate, bigger than anything else.”

“I think somewhere on this big inflation we’re going to have one (short-lived hyper-) deflation that will wipe out people that are too highly leveraged who don’t have any gold or silver. “Savers” will be wiped out. “Spenders” will be wiped out.”

“(The US Fed and Euro Central Banks) have already shown their hand. You’re going to see this crash and then inflation like we’ve never seen. So it really works for us [Scott’s note: Robert currently owns many rental apartments] because we’ll be collecting the rent but then we’ll be paying off those deadbeat loans of ours with cheap (inflated) money. That is the strategy.”

“The good news? I believe you can set aside $8,000 now, buy silver, and in a few years you will be able to buy a median-price home with those 500 ounces.

Special note to my friends reading this (you know who you are): go to your safe and grab hold of five of your 100 oz silver bars. In a few years that’s a house. Grab another five. There’s a house for your oldest child. Quite a wedding present, no? Doesn’t it feel good?

You Have No Idea




◊◊◊◊ Now: Gold @ $932.40, Silver @ $17.58, USDX @ 72.74 ◊◊◊◊


2 Responses

  1. nice article! God bless you sir!

  2. And I owe it all to you!!! Love you brother!

    God help the unprepared.

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