Update 2023: After thousands of years, it’s still not lost its lustre – crypto may have taken quite a few knocks last year but interest in gold has never wavered. In fact, once again interest in gold is rising – and not just with investors.
Many countries, most notably China, are buying up gold as a hedge against a weak dollar. It’s all about getting prepared for the worst-case scenario.So if you’re not doing likewise you run the risk of major losses. To learn about ways to diversify your assets, including buying gold or overseas real estate, talk to us today about an offshore Action Plan.
There’s a lot of ongoing debate about whether cryptocurrency is taking its place in our society in today’s day and age. Although, one of the most controversial topics is whether we should be investing in gold vs crypto.
Yes, it’s an integral part of our economy now, but will it maintain its place in the years to come? Due to the uncertainty, would it be better to invest in tangible and valuable metals like gold?
This is quite a progressive yet sensitive matter, but Robert Kiyosaki’s interview with Nomad Capitalist’s Founder, Andrew Henderson, might shed a bit more light on the subject.
If you’re not familiar with Robert, well, he’s one person whom you should listen to when it comes to money or cryptocurrency matters. He’s a successful businessman, author, and he’s the founder of the Rich Dad Company.
So should you invest in gold vs crypto?
The Three-Day Rule
Before getting caught up in the middle of investing in either gold or crypto, there’s something that most entrepreneurs and investors have to keep in mind. According to Robert, the three-day rule is a method that most people should be familiar with.
After all, this is something that he has perfected and practiced himself.
In his younger years, Robert served with the U. S. Marines. This is where he first heard about this rule or method. Where can you be in three days?
There was an old story that originated in China, and it said that you should always have some gold bars, a second set of papers, some passports, and a fast boat near the harbor. Nobody said what these items were for, but if we were to guess, then it could be a way to escape or leave as fast as you can.
Robert strongly believes that three days is all you need. Nothing more, and nothing less.
Taking Time Into Consideration
This might be something that can sound a bit annoying or even undoable. Most people give themselves a minimum of six months, and if their plans don’t make it to fruition, then that’s when they decide to leave.
Some people even give themselves the luxuries of figuring it out for a whole year, sometimes more. As we’ve probably realized, time is a luxury, which most people don’t have.
So three days is all you need. Although, how doable is it?
Some records show the same things. Whenever a particular government comes up with new tax laws, some people think that they might want to move out of the country. They might even believe that they want to give up or renounce their citizenship.
These bills are proposed, then a week later, it turns into a law. Then what else is there to do? You’re screwed, so you forget about it.
This is a method and a way of life that Robert believes in. You have to be out and relocated in three days. It doesn’t matter what you do, and it doesn’t matter where you go. It simply means that you need to have that second or third option, and once the market crashes, you have to be ready to go.
The Waiting Game, And Why You Should Avoid It
Many people think that the longer they wait, the better it’s going to be for them. However, this isn’t something that you should do when you decide on investing.
Some people think that if the economy of the United States falls, then everywhere else will follow. Although, how true is that?
Robert said that you have to learn just as much as anybody else. It doesn’t matter whether you’re a seasoned CEO; you still have to sit with everybody else. Life is an ongoing learning process, and with it comes the journey that most entrepreneurs and investors take on.
To his benefit, Robert has already been a global capitalist for decades. He’s been to different places on different parts of the globe, and he’s had the chance to inspect some of the areas that most young investors are running to.
Looking at Your Options When it Comes to Gold vs Crypto
In New Zealand, he said he fell in love with the beauty of the place but still doesn’t want to move there either temporarily or permanently. When asked why, he simply said, “Because I don’t have to.”
That’s the beauty of being a true Nomad Capitalist – you can go anywhere. You don’t have to go to a place that doesn’t feel right. Instead, heed Robert’s words when he said that he’s looking for a place that will respect his talents more than others. This is a factor why we believe in going where you’re treated best.
It’s so easy to get blinded by the trappings of the western world. However, there are so many factors to consider. This is why so many people nowadays are coming to us at Nomad Capitalist.
Robert told us about an encounter with one of his friends when he was in military school in New York. He said that he met a kid who was Jewish and whose parents were from Germany. The kid said that his parents left Germany because they could see what Adolf Hitler was doing. They didn’t wait for things to get worse. Once they saw what was happening, they left even before chaos ensued.
He later added that his family moved to New York and got rich, while most of their friends stayed behind in the hopes that Hitler would see the light. In the end, their friends went to Auschwitz.
The sentimentality in this story is heartbreaking, but too many people drag it out only when it’s bad enough. This doesn’t work with everything. It doesn’t work if you have a bad employee, a lousy job, or when everything else is going south.
You don’t have to wait longer than you’re supposed to because the waiting game wasn’t supposed to be played like this.
As Robert has mentioned, three days is all it takes. You have to be in position, and you have to be ready so that you can be fully functional and fully operational in three days.
Turning Onto the World of Crypto
In 2017, all markets crashed. It went to 20,000 but then it dropped to 7. So Robert had a critical question when it did hit 7. He asked himself, “Where’s it going to go from here?”
The only way that the waiting game was meant to be played is when you’re waiting on your next power move. This was what Robert did in 2017.
He paused, and he waited, so if it had gone down further than 7, he’d know what to do. Then it hit 9, and so he backed up. As soon as it hit 9, he bought 65.
Today, the cryptocurrency he owns is up to 50,000, but he said that he doesn’t pay attention to it. It’s kind of modest if you ask us, but then again, it’s Robert.
There’ll always be people arguing whether they should buy gold vs crypto coins or whether bitcoin against gold is the real decision.
Today’s ongoing debate revolves around the topics of gold vs crypto. Although, no matter which one you may prefer, Robert has one answer to that. He’s not the type of person who cares enough to compete with gold vs crypto. All he says is it’ll always go down on how much you actually have.
Advice on How to Deal with Gold vs Crypto Investments
Today, Robert is taking a break from trading and says that he’s waiting for the next crash. Although, what does that really mean? If you’ve never traded before, or if you’ve got some experience but want to know more. Then Robert has some pretty informative pieces of advice.
He’s mentioned that the reason why people go broke is that most of them chase something on the way up. They get this thing called “fear of missing out” or “FOMO.” The adrenaline they get makes them happy. Although, to be an entrepreneur means that you have to understand what it feels like to be sad.
Back then, the real estate market in Arizona crashed. This was one of the best real estate markets in the world, and they’re giving it away for free. Yes, everybody thought that it was terrible and that it was so bad for the economy.
However, as a true entrepreneur and investor, you’d have to say that this was it. This is what you’ve been waiting for … at least, in Robert’s case.
Yes, there may be people or even colleagues that might doubt your investment preferences. Back in the day, deals in Hong Kong were made even though people said that the country was falling apart. Then again, where were you supposed to buy properties? In 5th Avenue where everything seemed perfect?
There’s something unique and quite thrilling when purchasing property or investing in places or cities with great potential – especially when not everybody sees it.
Today, it seems as if there are way too many people saying so much when it comes to investing, then they’re doing the exact opposite.
As Robert said, when something gets really, really bad, then to him, it’s perfect. When crypto went from 20 to 7, he looked at the indicators, and he knew that it was now going to take another run-up.
He knew what’s going to happen, so he waited, but he knew when to make his move. He picked it up at 9, and he stopped. When asked why, he simply said, “I’m not greedy.”
Yes, he wanted to chase it, but he’s still waiting. He’s waiting for phases where he can fully decide whether he’s buying more or whether it’s time to stop.
The Gold vs Crypto Debate
Today, there’s an ongoing gold vs crypto investment debate and which ones have a higher value. People even go as far as claiming that gold is dead, but what does Robert think of it?
Robert explained that gold and silver are God’s money. Why? Well, they were already here when the earth was formed, even before humans walked on the face of the planet. Both gold and silver are part of the periodic table of elements, and they’re still going to be here even when we’re all gone.
Think ahead to nine million years from now, gold will still be here, but do you think bitcoin will?
He added that he wasn’t sure whether bitcoin would be gone since he won’t be there in nine million years.
Although, he clarified his statement that gold and silver are God’s money and that crypto is the people’s money. For this reason, he said that he’d probably continue buying gold. He thinks you should too.
So in the Gold vs Crypto debate who wins?
Robert simply answers, “Who’s got the most?”
The Role Debt Has in Making Entrepreneurs Succeed
Dave Ramsey popularized the debt-free lifestyle, and he might disagree with Robert in his claim that it’s better to live with debt. There were some things that Robert has said that don’t sit well with people.
Then again, he’s not looking to please people.
Robert even claimed that this was where Donald Trump and himself were aligned. Yes, people hate Trump, and they think badly about him due to his womanizing ways and for his politics. However, both Trump and Robert use debt as money.
This is such an exciting topic, since who would even think about using debt as money? That’s not something that most people or even most entrepreneurs think about when they’re starting their businesses.
He claims that he doesn’t need cash and doesn’t see the point of saving dollars. Robert has taken cash, and with it, he bought gold, silver, and bitcoin. He also claimed that if he’s going to buy something, he’s going to use debt.
This is such an underrated statement, but is it applicable to most people?
Using Debt as Money
Who would’ve thought that playing Monopoly at the age of nine would open Robert’s eyes and would attract him into financial education?
He never really envisioned that he would talk about gold vs crypto. However, today, he owns a bunch of hotels, almost 8,000 rental units, and these were purchased using debt.
He recently borrowed another $160,000,000 with a 3% interest rate because Robert sees no point in saving money when the government is simply giving it away.
This is why he uses debt to buy apartments, like the 160 units that he just bought in Houston, Texas. These properties pay the cash flow, while the debt is tax-free. He pays no taxes because he owns real estate.
Although, if he owned mutual funds or an ETF, then those investments are taxable. So he tries to stay away from it as much as possible.
He even claims that Dave Ramsey, the guy obsessed with living debt-free, agrees with him. We’ll never know this, but there’s a high probability that he’s right because they’re both men in real estate. Although, he reiterated that for the average person with no financial education, it’s always better to live debt-free.
Switching from Living A Debt-Free Life to A Life of Debt
Andrew asked Robert when the switch from living a debt-free life to a life of debt will be done. Robert simply says, “Get educated.”
For some reason, that sounds like a reasonable answer, especially in this day and age where countless resources are freely available to people who want to learn more about the economy and financial freedom.
It does take time and education, as Robert said
He told us a story of when he came back from the Vietnam War. His dad pushed him into flying for an airline, but he was already making $250,000 annually. By then, he knew he could make more as an entrepreneur.
His dad pushed him to go back to school, fly for the airline, get his higher education, and maybe even a Ph.D.
To Robert, Ph.D. stands for “poor, helpless, and desperate.”
Frequently, many people take advice from people who aren’t doing what they’re spitting out. If you ask for advice about moving from a guy who’s sitting at Palm Beach, then why would you even listen to that guy in the first place?
It’s essential to choose your teachers and mentors correctly because they can shape your lives and mentality. This is something that most people should be doing correctly.
Would You Rather Invest in Gold vs Crypto?
As an entrepreneur, Robert knows that he can make his assets. It doesn’t even matter whether he’s buying or investing in gold vs crypto.
Throughout his lifetime, he has already taken three companies public, and one even went to China.
Upon raising $26,000,000 in the Toronto Stock Exchange, he bought a gold mine in China’s Dalian Province. Then he recalled that as soon as his team struck gold, the authorities were there to confiscate it.
Robert said that he doesn’t blame the Chinese; he blamed himself and his stupidity. Why would you do business in a country where you know their government can confiscate your wealth? Gold confiscation is prevalent all around the world, and this may be a reason to stop investing in gold or any other type of precious metal.
Robert popularly said that he doesn’t trust the government in general. It’s an exciting time, and that’s why our work at Nomad Capitalist is so important. We’re opening people’s minds, and that’s one of the most important things that we can have today as a society.
Can You Trust Your Government?
He said that if he could go somewhere, he would go to South Carolina in the United States.
New Zealand is too far, while Singapore is an island with too many people and no life support. Now, we’ve never heard somebody describe Singapore like that, but he’s Robert Kiyosaki, after all.
He does have a place in Switzerland, and he said that he trusts the Swiss. So that’s probably a step in the right direction.
We might think about our ancestors, and we get amazed at how they moved in the olden days from all over the world. They were carried in ships that sailed for months and months, and we got inspired by their hopes and passions.
Although, why won’t we do the same thing? Today, travel has become more accessible and cheaper, so why don’t we try and do the same thing? Why don’t we all go where we’re treated best?
According to Robert, it’s probably because we went to school, and in school, they punish us for making mistakes. Then again, how would you learn to walk if you don’t fall?
The thing that scares people is that they’ll end up in the wrong place and that they’ll make so many mistakes. Although we all make mistakes, and it’s from these mistakes that we learn from. They’re our stepping stones, and making mistakes is part of the learning process. It’s life.
The Deals We Might Regret Doing
Andrew asked Robert if there was ever a deal that he regrets doing. Well, Robert is a Marine, and he did say that he’s a firm believer of the phrase, “no pain, no gain.”
However, one of his worst deals was from a CEO he hired because he had the credentials to graduate from Harvard MBA.
This CEO ripped him off, and Robert said that the pain he felt was extreme. Honestly, if Robert has been ripped by someone like this, how could we trust the others with the same credentials?
Although, he knows that most entrepreneurs make mistakes. Then again, you’d need a great community to surround you. Because if you didn’t have a solid support system, you’d start to make mistakes that you’ll regret.
We always ask ourselves where we’ll run to when the question we should be asking ourselves is who we are running with? The people that you have alongside you are essential.
In the Marines, you fight as a team. The guy behind you can shoot just as well as you can shoot. So the first thing that Robert looks at when it comes to location hunting is the network of people.
You could be in the best country on earth and not know anybody there. As Robert said, you need a squad behind you.
This is why, if you’re going to move in three days, you need to have a team in place. That’s vital.
Is It Ever Enough?
As an entrepreneur, you strive for the journey. Although, do you think that there’ll ever be a time when you’ll think to yourself that you’ve had enough, or that you have enough money?
We think that it depends on who you are.
Even Robert said that if you ask most pro-athletes, they’d say that they wish they could play longer because they’ve spent their whole lives getting to that level. They’ve spent so many years practicing and getting that good, only to retire at a certain age.
So it’s never about it being “enough.”
We always have to be reminded that big people don’t have small problems. So you want to have bigger problems since this is the entrepreneur’s game – even though most people don’t get that.
Do you know what most people do? They go to school, and they hope that their 401k’s will keep them alive.
This is the hard thing, and more importantly, if you look at people who invest in cryptocurrency. Whether they’re all still debating if it’s gold vs crypto. It really doesn’t matter.
Robert is a big crypto guy himself, and we believe that he’s on the gold vs crypto trend as well. So he believes that as soon as the market crashes, you’ll only need three days.
It all comes back to this one rule, his golden rule, that you’ve got to be relocated in three days.
If there’s a crash tonight, then where will you be in three days? This is the question that Robert Kiyosaki wants us to answer.