Robert Kiyosaki, a well-known investor and bestselling author, warns investors against relying on exchange-traded funds (ETFs) for investments in assets like gold, silver, and Bitcoin. He believes that ETFs do not provide the same protection as owning physical assets.
Kiyosaki's Warnings on ETF Risks
Kiyosaki points out that sometimes it is better to have real assets, such as gold and Bitcoin. He noted, 'Sometimes it is best to have real gold, silver, Bitcoin, and a gun.' He compared them to 'a picture of a gun', which may be useful in normal conditions but useless in an emergency.
Reasons Kiyosaki Prefers Real Assets
He claims that financial institutions managing ETFs could fail during financial crises. His concern is that these institutions could run out of reserves, making their shares useless. Therefore, Kiyosaki has long recommended owning physical gold, silver, and self-custodied Bitcoin, which he believes offer greater security.
Growing Interest in ETFs in the Market
Despite Kiyosaki’s warnings, the ETF market continues to see strong inflows. Last week, for example, U.S. spot Bitcoin ETFs attracted $130 million in net inflows after a three-day outflow trend of over $280 million.
Robert Kiyosaki's warnings highlight a growing divide in investment strategies. While the convenience of ETFs is acknowledged, understanding the risks and differences between real assets and their paper counterparts is essential.
