Economic recessions are marked by downturns in the U.S. economy. One of the most notable was in the 1920s, when there was a huge market collapse that led to the Great Depression. The U.S. has seen multiple recessions since then, like the Great Recession from 2007 to 2009.
Robert Kiyosaki, financial author and founder of Rich Dad, has made predictions in the past that the U.S. is headed for another recession. Whether or not Kiyosaki is right in his prediction, it’s still always good to be prepared when it comes to your finances and investments in case a downturn does happen.
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Here is how to shift your mindset when it comes to recessions and three assets Kiyosaki recommends to fortify against a depression and build wealth in the process.
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The Mindset Shift: Capitalize On Opportunity
According to Kiyosaki, high inflation and taxation in the U.S. could lead to a depression. However, that doesn’t have to spell doom and gloom for your finances if you’re prepared to adjust accordingly. Kiyosaki believes there are still ways you can profit during recessions.
“How long the New Great Depression lasts will depend upon you, who work for, who you work with, and who your friends are. The next Great Depression could be the best thing that ever happened to you if you are ready for it,” Kiyosaki said on X (formerly Twitter).
With this mindset, you’ll be able to capitalize on the opportunity during times of recession. His preparation strategy focuses on investing in core assets that will withstand a financial downturn.
Owning some core assets, as recommended by Kiyosaki, is a foolproof way to remain sustained during a recession. In an X post from last year, he recommended buying gold, silver and bitcoin to prepare for an upcoming recession, and he has remained steadfast in this recommendation.
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Gold
The potential of investing in gold is a rewarding move. Gold is typically seen as a safe investment, which is why it’s a popular investment in times of recession. “Due to its reputation for being a safe-haven asset, gold tends to perform well during a recession,” per Bloomberg. The metal is up nearly 46% for the year.
Kiyosaki views gold as “real” money, stating in a post on X, “Why not get smart and keep some of your money in real money … Gold, silver, and Bitcoin?”
Silver
Gold is more expensive than silver, but silver is the second most used commodity after oil, according to Sprott. It has been used as money for centuries. It has gone up 51% over the past year, and it’s still far below its all-time high.
According to Kiyosaki, silver is a better long-term investment than gold, as it’s becoming rarer, though he advises investing in both.
Bitcoin
Bitcoin is a digital asset that’s standing the test of time; however, many people are worried about it as an investment because of its volatility. Per iShares, bitcoin’s volatility is higher than that of both gold and global equities.
Kiyosaki is optimistic about bitcoin, especially during a recession. It’s trading around $61,000 and is up nearly 38% year to date. Kiyosaki has predicted it will hit $350,000.
Kiyosaki’s Advice To Get Rich During a Recession
Kiyosaki’s solution to his predicted great depression is investing in “real” money through three assets — gold, silver and bitcoin. Doing so, he has said, will allow you to profit during an economic downturn.
He frequently reiterates his suggestion to buy these assets, recently saying on X, “Those who own real gold, silver, and Bitcoin will get richer.”
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This article originally appeared on GOBankingRates.com: Robert Kiyosaki: These 3 Assets Will Make a Depression the Best Time of Your Life
