American investor Robert Kiyosaki shared a cautionary message for investors on Friday — urging them to buy ETFs. The Rich Dad Poor Dad author also voiced concern about having ‘paper’ and issued recommendations for the average investor.
‘Beware of paper’
“Beware of paper. I realize ETFs make investing easier for the average investor….so I do recommend ETFs for the average investor. Yet I extend these words of caution…” Kiyosaki wrote on X.
He also recommended the ‘average investor’ to focus on Gold ETFs, Silver ETFs and Bitcoin ETFs. The Rich Dad Poor Dad author has issued repeated warnings about an impending ‘crash’ in recent weeks — urging people to invest in gold, silver, and Bitcoins when possible. His latest post also noted that ETF investments were akin to “having a picture of a gun for personal defense”.
“Sometimes it’s best to have real gold, silver, Bitcoin, and a gun. Know the differences when it is best to have real and when it’s best to have paper. If you know the differences, and how to use them….you’re better than average,” he added.
What are ETFs?
Exchange-Traded Funds are a relatively low-cost way to invest in a diversified portfolio of assets, traded on stock markets in a manner similar to company shares. They typically hold a basket of securities and track an index, commodity, or portfolio of assets — offering extensive exposure to investors
Gold and silver ETFs allow investors to trade in the precious metals without actually owning and storing them. It tracks domestic prices (with net asset value fluctuating accordingly) with each ETF unit representing a specific quantity. Shares are bought and sold on the stock exchange during trading hours, just like ordinary stocks, and investors receive the cash equivalent when they sell. Regular retail investors cannot redeem ETF units for physical gold or silver.
Meanwhile Bitcoin ETF is an investment fund that tracks the cryptocurrency price without investors having to actually buy or manage the digital currency.