Rich Dad Poor Dad author Kiyosaki: Immediately sell cash to buy these 4 types of assets

《Rich Dad Poor Dad》author Robert Kiyosaki issues another investment warning, urging investors to immediately stop hoarding cash and instead allocate assets such as gold, silver, Bitcoin, and Ethereum. Kiyosaki points out that continuous money printing by central banks worldwide leads to inflation eroding purchasing power, making money stored in banks almost a depreciating asset.

Why does Kiyosaki believe cash is the biggest mistake

Famous for the “Rich Dad Poor Dad” series, Kiyosaki has long challenged traditional savings concepts. His core argument is very straightforward: holding cash in today’s economic environment is highly risky. With central banks around the world printing money and inflation impacting purchasing power, Kiyosaki believes that money stored in banks is almost a depreciating asset.

“Don’t save money; save assets that preserve and increase value over time.” Kiyosaki has repeatedly emphasized this point on social media, specifically mentioning precious metals and mainstream cryptocurrencies. This radical viewpoint has sparked widespread discussion amid global interest rate pressures and traditional savings losses.

Kiyosaki’s logic is based on inflation’s erosive effects. Assuming an annual inflation rate of 3%, $100,000 in cash deposited in a bank will have an actual purchasing power equivalent to only $97,000 after one year. If inflation rises to 5% or higher, the rate at which wealth shrinks accelerates. Traditional savings accounts often offer interest rates that fail to beat inflation, making holding cash a “guaranteed loss” strategy.

Deeper concerns stem from structural issues within the monetary system. Kiyosaki has repeatedly pointed out that since President Nixon announced the dollar’s decoupling from gold in 1971, fiat currencies have lost physical backing, with their value entirely dependent on government credit. When central banks print large amounts of money to stimulate the economy or respond to crises, the money supply surges, diluting the actual value of each banknote.

Gold and Silver: The Classic Asset Allocation of Rich Dad Poor Dad

For centuries, gold and silver have been trusted stores of value. Kiyosaki emphasizes that these metals can resist inflation and economic uncertainty, making them more reliable choices for investors seeking stability. In recent months, as investors hedge against market volatility, demand for gold and silver has fluctuated.

Gold hit a record high in 2025, with spot prices briefly surpassing $4,550, up over 150% from $1,800 in 2020. This rally is not accidental but a result of ongoing central bank gold purchases, geopolitical tensions, and rising inflation expectations. Kiyosaki’s advice supports the view that physical metals remain a cornerstone of long-term wealth preservation.

Silver, though more volatile than gold, benefits from industrial demand. From solar panels to electronics, silver’s demand continues to grow with green energy and tech industries. Kiyosaki sees silver not only as a monetary metal but also as an industrial metal, making its dual nature attractive for long-term allocation.

Kiyosaki’s Four Asset Allocation Principles

Gold (The King of Hedging): Resists inflation, hedges against currency depreciation, continuously accumulated by central banks

Silver (Dual Industrial + Monetary Asset): Driven by green energy demand, lower price than gold, accessible for retail investors

Bitcoin (Digital Gold): Supply cap of 21,000,000 coins, decentralized, increasing institutional adoption

Ethereum (Smart Contract Platform): Foundation of DeFi ecosystem, real-world applications, ongoing technological upgrades

Bitcoin and Ethereum: The Digital Transformation of Rich Dad Poor Dad

Regarding digital investments, Kiyosaki highlights Bitcoin and Ethereum as modern tools to safeguard wealth. Unlike cash, these cryptocurrencies are decentralized and have limited supply, making them highly attractive for investors seeking anti-inflation assets.

Bitcoin has maintained its reputation as digital gold. Its supply cap of 21 million coins is embedded in code and cannot be altered by any government or institution, creating scarcity that makes it an ideal hedge against inflation. The Trump administration’s plan to establish a national Bitcoin reserve further affirms Kiyosaki’s long-term view of Bitcoin’s value.

Ethereum’s expanding ecosystem in decentralized finance (DeFi) and smart contracts offers more than speculative value; it has practical use cases. From lending protocols to decentralized exchanges, from NFTs to tokenized securities, Ethereum has become the infrastructure of the Web3 world. Kiyosaki believes Ethereum’s utility gives it long-term potential beyond mere store of value.

However, Kiyosaki also warns that the cryptocurrency market is highly volatile and investors should not allocate all assets here. He recommends a diversified approach, combining precious metals and cryptocurrencies to pursue growth while maintaining stability. This balanced view of traditional and digital assets aligns with the risk management principles emphasized in “Rich Dad Poor Dad.”

From Saver to Investor: A Mindset Shift

Kiyosaki’s investment advice highlights a broader trend toward diversification, moving beyond fiat currency. Combining precious metals with well-known cryptocurrencies can effectively hedge against inflation and financial instability. As the global economy remains turbulent, Kiyosaki’s recommendations resonate with those seeking alternatives to traditional savings accounts.

This shift requires a fundamental change in mindset. Conventional wisdom sees saving as virtuous and keeping money in banks as safest. But Kiyosaki challenges this notion, pointing out that in an inflationary environment, savers are actually losers, and only investors can protect and grow their wealth. This is a continuation of the core philosophy of “Rich Dad Poor Dad”: making money work for you, not working for money.

Kiyosaki’s candid advice may not suit everyone, but it demonstrates increasing awareness that wealth preservation requires thinking beyond cash. For risk-averse investors, starting with small allocations to metals and cryptocurrencies can gradually build an inflation-resistant asset portfolio.