Gold Hits $3,500 Record High While Bitcoin Faces Selling Pressure

TLDR

• Robert Kiyosaki warns of a major financial collapse with European bonds crashing 24%
• He predicts bankruptcy for France and civil unrest in Germany, stating “Europe is toast”
• US Treasury bonds have dropped 13% since 2020, while British bonds have fallen 32%
• Japan and China are dumping US bonds in favor of gold and silver
• Gold futures reached a record high of $3,500, while Bitcoin faces selling pressure below $108,000

Robert Kiyosaki, the veteran investor and author of “Rich Dad Poor Dad,” has issued a stark warning about an impending financial collapse. He points to major bond market pressure in America, Britain, and Europe as evidence of a brewing global economic crisis.

In his recent message on the X platform, Kiyosaki warned that “Europe is toast” while predicting bankruptcy for France and civil unrest in Germany. He compared the situation in France to the brink of a major revolt similar to Bastille Day, citing economic strains and potential bankruptcy concerns.

The financial educator highlighted the decline in government bonds across major economies. US Treasury bonds have dropped 13% since 2020, European bonds are down 24%, and British bonds have fallen 32%. This widespread decline led Kiyosaki to declare that “Nothing is safe” when looking at the global market condition.

Adding to his concerns, Kiyosaki noted that Japan and China continue to dump US bonds in favor of precious metals. This shift in investment strategy from major economies suggests growing uncertainty in traditional financial instruments.

As a hedge against this instability, Kiyosaki recommends investors hold gold, silver, and Bitcoin. “This insanity is why I continue to recommend you save yourself….and save gold, silver, and Bitcoin,” he stated.

Market Performance of Safe Haven Assets

The precious metals market appears to support Kiyosaki’s outlook. Gold futures have touched a record high at $3,500, while silver prices have reached a 14-year high. This surge comes amid uncertainty over the Federal Reserve’s rate cuts during the September Federal Open Market Committee (FOMC) meeting.

Bitcoin, however, has been facing selling pressure. The cryptocurrency has eroded all of its monthly gains for August and extended losses to more than 15% from its all-time highs. The divergence between gold and Bitcoin performance has drawn criticism from Bitcoin skeptics.

Peter Schiff, a known Bitcoin critic, questioned the cryptocurrency’s performance: “Gold closed at an all-time record high. If Bitcoin is digital gold, why is it more than 13% below its record high?”

Last week, banking giant JPMorgan stated that Bitcoin is undervalued relative to gold. This assessment comes at a critical time for Bitcoin as it faces a litmus test for its status as a hedge asset.

Global Economic Concerns

Kiyosaki’s warnings extend beyond market performance to socioeconomic stability. He has expressed concerns about the United States becoming “the largest debtor nation in history” and questioned the traditional investment advice of financial planners.

The author criticized financial planners who advocate for the traditional 60/40 portfolio split between bonds and stocks, suggesting this strategy may no longer be effective in the current economic climate.

Kiyosaki’s latest warnings about global debt and asset stability align with his prior cautionary outlooks on market volatility. He has consistently pointed to risks facing traditional investments and the potential impact on retirement portfolios.

The movement of capital from Bitcoin to Ethereum by OG Bitcoin whales suggests a shift in the cryptocurrency market as well. This capital rotation comes at a time when both traditional and alternative investment markets face uncertainty.

With gold reaching new heights while bonds decline across major economies, investors are reassessing their portfolios in light of these market signals. Kiyosaki’s advice to hold gold, silver, and Bitcoin reflects his view that these assets may offer protection during the financial turmoil he anticipates.

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