Kiyosaki's comments on Gold price

Why Gold is Falling
Many people are selling gold. Does this mean the boom in gold is over?

Personally, I’m not selling. I’m waiting to buy more gold and silver if the price continues to drop.

While prices of anything goes up and down, gold and silver are over due for a correction. The price should drop. Both metals have been in a ten-year bull market cycle. Another reason why precious metals aren’t rising is because Asian markets are raising interest rates on bonds (debt).

Many people don’t like gold and silver because there’s no interest. When interest rates were near or at zero, gold and silver prices were rising and people got out of bonds and into the precious metals bull market. Now that Asian interest rates are rising, some investors are leaving precious metals, and possibly stocks, and getting back into bonds.

Many people believe China’s bubble will bust in mid-to-late 2011. There’s simply too much money flowing into China and the Chinese markets are overheated, just as the US and European markets were overheated in 2007. If China goes bust, the world will also go bust. This is why they’re raising interest rates, trying to slow speculation and financial insanity.

Those of you who read Conspiracy of the Rich: The 8 New Rules of Money know that too much money at low interest rates was the cause of the 2007 US market collapse. Unfortunately, there’s still too much money running around looking for a place to call home, which causes inflation and speculation worldwide.

I believe we’ll be in a boom and bust world economy for at least ten more years. This is why I encourage people to stay vigilant, pay attention to the price of gold, silver, oil, food prices, and interest rates. I believe those prices more than I believe the words from our leaders.

For now, I trust gold and silver more than I trust political promises.

Thank you for supporting COR.

Robert Kiyosaki


*This is a worthwhile article to ponder when there is a price drop in the metals.