The following is a transcript of GoldSeek Radioís interview with Robert Kiyosaki.To listen to the audio, click here, or to download the free mp3 file: Click Here
Chris Waltzek:So glad youíre back with us at GoldSeek.com Radio for another Gold Nugget segment.Todayís special guest, Robert Kiyosaki, author of the Rich Dad, Poor Dad series.
Well, itís a pleasure to welcome back to the show the author of the Rich Dad, Poor Dad series, which has sold over 26 million copies worldwide.Welcome back, Robert Kiyosaki.
Robert Kiyosaki:Well, thank you.
Chris Waltzek:Letís begin with gold.11 years after the bull market began, people are only now beginning to wake up to the explosive investment potential.Youíve been a big fan of the yellow metal now for at least 40 years.Tell folks what you turned you on to gold.
Robert Kiyosaki:Well, I wrote about it in my book, Conspiracy of the Rich, you know?Itís about how the rich control the game of money.And I was Ė in 1972, I was a pilot in Vietnam and I saw the Vietnamese people panicking because they knew that the United States had lost the war and they didnít trust the U. S. dollar Ďcause it was now floating, and so, they were shifting to gold.And when I saw that, I said, ďThereís something to that stuffĒ and I became kind of a gold bug in 1972.
Chris Waltzek:How did you remain focused on that important epiphany during the 20 year downturn?
Robert Kiyosaki:Itís like anything else, I was out by í79, so I was okay Ďcause I was selling around $750.00.Iím a student of the markets.
Chris Waltzek:When do you think that time would be?Do you expect to be hearing, neighbors and commercials everywhere and a new cable channel? All gold news, all the time.What are gonna be the signs that itís time to sell?
Robert Kiyosaki:I thought it was interesting, yesterday, Cramer was telling everybody to buy and today, it drops.Heís a very smart man, but he should stay out of gold.Anyway, I donít know.I mean, I think Ė Iíll just tell you my plans because I started loading up heavily around í96, í97 and it kept going down.I think it hit a low of like $275.00 or something around 2000, and I just kept loading up.Iíve been loading up ever since.So, Iíve just been less loading now, but my strategy is I always use debt, taxes and gold as my thing.So, I plan to start exiting around the year 2016, 2017.And with the gains I make in gold, Iím gonna pay off my debts.Like, I have lots of apartment houses.I buy gold for one simple reason.I donít trust my government.I donít trust most government leaders and I think the biggest thing we gotta watch out for, besides the pressure in the Middle East because, everybody expects Libya to go democracy and, I think thatís yet to be seen.
But, the biggest quandary today is actually is in the EU because they have some severe operating problems. They Ė Greece is not the same country as France. At least in the States, weíre all states and weíre the same country.But the European Union has very, very serious powers between strong countries and weak countries.The United States biggest problems will be coming up in five years.Itís called Social Security and Medicare and these are structural problems that will not go away with an election or a promise from a President.So, Europeís problems are today and Americaís are five to seven years.Europe is, I mean, England is a big worry.Theyíre doing their best to handle Ďcause of the rioting, but theyíre not strong.So, Iím just Ė I would rather have gold than anything else right now.I donít trust Ė I donít Ė and something can happen.
Chris Waltzek:As youíve shown on some of your videos, the dollar, essentially, is backed by nothing.
Chris Waltzek:If we go back to the early days of the last century, you could take $20.00.At the very bottom, it would say, ďThis is redeemable, in some precious metal.ĒI think it was silver.There was something backing it there.There was some substance.
Chris Waltzek:But, fast forward to today, and thereís nothing there but the hard work, the tax money, of the individual.
Robert Kiyosaki:Life is a point of view, you know, and which side of the view are you on?Youíve really gotta be playing the game from the side of the rich Ďcause if youíre not, youíre getting crushed right now.Buy a house Ė thatís a joke.Get out of debt Ė thatís a joke.Youíre supposed to be getting into debt.And you put your funds, your money, in say in a 401K and a 401K is only good for people who are planning to be poor when theyíre retired.So, I donít have any plans of being poor, so I donít have a 401K.If youíre not gonna get educated and understand that the whole game is rigged by the rich, and once you figure out the rules of the rich, then you play by the rules of the rich.And everybody else is kind of just being whip-sawed right now and itís quite a tragedy.
We havenít seen the worst yet.You know, there was a Great Depression?Well, the new depression is gonna make the Great Depression look like a golf visit.
Chris Waltzek:I think you may be onto something there.You talked about retirement accounts, pension funds, 401Ks, things like that.It seems like if they arenít first inflated away through the declining dollar or purchasing power, then, eventually, theyíll probably be confiscated anyway.All around, it doesnít look like a safe place to park the funds that are gonna be required for a comfortable retirement.
Robert Kiyosaki:I donít think thatís possible.I mean, I think that Ė what Ė I just read an article this morning.Seven out of ten people over 65 plan on continuing to work Ďcause they have to, not because they want to.
Chris Waltzek:Most folks these days really are struggling to make ends meet.When you talk about how can people prepare, it seems to me like people need to get their house in order and start thinking along the lines of much higher prices for everyday goods and services.What do you think?
Robert Kiyosaki:Well, the thing of it is, already, whatís happening is foodís going up and the reason foodís going up is simply because all the farmers are old.The average age of the American farmer is almost 60.But, also, is, you know, as oil prices staying, letís say about $85.00 a barrel, that affects not only fertilizer, but transportation costs.So, like it or not, foodís gonna go up regardless.And look at the other side of it Ďcause Iím a debt guy.I love debt.You know, thatís why I buy large apartment houses with 100 percent financing.And because Iíve been in real estate and I can cash flow a property and all that, the banks are just giving me all the debt I want for like, you know, five percent, six percent.And this is fabulous.And, to me, you know, Iíve been just an advocate of financial education for years and I said, ďWhy doesnít our school have financial education?ĒOur leaders donít have any financial education, thatís for sure.
Chris Waltzek:Take a step back here and look at some potential opportunities.In another, less widely followed metal, but where there seems to be a lot of potential, and that, of course, is silver.For folks who missed the gold boat, silver hasnít even yet crossed its nominal 1980ís high point, and adjusted for inflation, most analysts are looking for $100.00, $150.00 at least for silver.
Robert Kiyosaki:Iím a silver bug, so one year ago, I told my friends, this is when silver was $17.00, I said, ďYou better buy now, Ďcause youíre never gonna see it again.ĒSo, $17.00 was the magic number to me.And so, they really missed it.Now, as far as above $50.00, I would say thatís probably a given and they donít understand why theyíre getting into this stuff.But, the reason theyíre getting into it is because, like, our governmentís ripping Ďem off, but they would rather have, you know, a government we trust.And, you know, what Iím sick of right now, personally, is I turn on Fox and I watch the news and all it is is these political shows talking as if these politicians, or whoeverís elected or not elected next year, is gonna make a difference.And theyíre talking about taxing the rich.You know, what Ė thatís not gonna make any difference.And they keep talking about how these regulations impede entrepreneurs.Well, nothing impedes entrepreneurs.So, you know, really, what it is is the individual person really does have very little financial education.And so, right now, this marketís crushing Ďem and Iím afraid if they do nothing, they will be crushed.I have a lot of friends and family who are in very dire straits right now.And no matter how much I talk to them, you know, I say, ďYou should buy silver now.Itís your last chanceĒ, they didnít do anything and I think thatís the problem.
Chris Waltzek:The major equities markets have suffered over the past couple of months.Does this look like a sea change, if you will, where investors are going to start shunning equities and, maybe, a downtrend emerges similar to 2008, 2009?
Robert Kiyosaki:Yeah, I think so.Iím not a real equities guy because I donít like equities.Iím a private investor.In other words, I buy my own apartment houses.I buy my own oil wells.I drill my own wells.I donít like the public markets because theyíre manipulated.But, anyway, when I watch people trying to guess the stock market, you better know itís manipulated.If youíre not into manipulation, then maybe you shouldnít be in it.So, I think thatís really the thing.And I predict that the bottom of the stock market, a big run off, will probably be 2016, 2017.Itíll clean out all the baby boomers who are in it and then itíll be time thatgold will go through the roof, silver will go through the roof and itíll be time to exit gold and silver around 2018.Thatís my prediction.Thereís definitely no fundamentals to what I say.I just Ė thatís the way I see it going, so for right now, Iím just kind of watching and seeing how it tracks, but so far, Iíve been right on.And the reason I think the stock market hasnít seen this bottom yet is because all over the world, thereís a group of people called baby boomers, thatís with the stock market like they do in the European market.
Chris Waltzek:The home equity that they had counted on to boost the retirement funds has simply evaporated.Plus, now, looking at their 401Ks, pension funds, seeing that red across the bottom line, that doesnít get people excited about retirement, and as they pull in the reigns, of course, thatís a major component of the economy, the whole thing kind of comes down.Do you care to make any predictions for, maybe, gold and silver within the next 12 months or so?
Robert Kiyosaki:Yeah, hang on to it.
I mean, look, I donít know whatís gonna happen, but let me just say, letís say there is a terrorist attack and all that, whatever happens, earthquake, hurricane.This economy is so fragile.It is so fragile itís on life support right now, and Iíd rather hang on to stuff thatís real than to be speculating on the dollar or stocks.I have lots of silver because at least a silver coin, you can buy something with.Itís got some tangible value to it.So, thatís the way I look at it.I am very cautious right now.This rioting in England and all that, I think is gonna come to the United States.Thatís what Ė if it doesnít happen, good; but, in case it does, I would rather be prepared and thatís why Iíve always said, ďHave some gold.Have some food.Be prepared.Ē
Chris Waltzek:Sounds like a good safety net to me.Well, could you tell folks how they can find out more about the Rich Dad, Poor Dad series, as well as any of your latest work and websites, please?
Robert Kiyosaki:Well, thereís two books, and my latest book is Unfair Advantage and itís how I used debt and taxes to get rich and all these people are screaming about tax the rich.Well, they donít ever tax the rich.They tax high income people like doctors, lawyers and CEOs.They donít ever tax rich people.
And then, I talk about debt and how I use debt to get rich.So, Iím so counter to, Susie Orman or the other guys and itís made me a very rich man.The other side Ė the book is Unfair Advantage and thereís another book called Conspiracy of the Rich.And the reason I wasnít caught in this crisis is because I understand how the markets are manipulated.So, once you know that, youíre not sucked into the tos and fros and the ups and downs or the yelling or the screaming.And the thing is, if a person has been hurt in this crisis, you know, I would really look at changing my thinking or getting new advisors or something because getting bad advice Ė like, just now, my stockbroker called me and he told me to sell my gold and go into equities.Heís gotta put food on his table, I understand.But, why would I get into equities?I donít Ė and why would I sell my gold?I donít understand that.And Iíd rather have gold right now and Iíd rather have silver than anything else.
Chris Waltzek:Exactly.Itís tangible and thereís no leans or any other debts against it, so itís yours to keep, whereas those bills, well, theyíve got someone elseís name on it and they can be confiscated anytime either through inflation, taxes or whatnot.
Robert Kiyosaki:Iíll just say this, is given the instability and uncertainty, Iíd rather have whatís certain.And whatís for real is gold and silver and things are too uncertain today to be trying to second guess the market.So, I want to thank everybody for listening.
Chris Waltzek:Thank you, sir, and have an excellent day.
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