‘Rich Dad Poor Dad’ author Robert Kiyosaki warns inflation is systemic and investors should buy gold, real estate, gas, and food

• Inflation has become a systemic issue, according to “Rich Dad Poor Dad” author Robert Kiyosaki.

• The personal finance guru touted his top inflation hedges as prices remain elevated.

• Kiyosaki has been a frequent doomsayer and predicted the “biggest crash in world history” in 2021.

Inflation has become a systemic problem, and investors need to start hedging against it by looking at specific real assets, according to “Rich Dad Poor Dad” author Robert Kiyosaki.

“The whole system is in trouble. My biggest concern is that inflation is now systemic. When Powell said it was transitory, that was a lie,” the personal finance guru said in an interview with CNBC on Saturday, referring to Fed Chair Powell’s previous stance that rising prices were merely transitory, before reneging on that comment later in 2022.

Prices have stayed well-above the Fed’s 2% inflation target over the past year, clocking in at 5% in March. Though inflation has been on the decline since mid-2022, experts say inflationary pressures are still lingering in the economy, which could keep stocks relatively flat through the rest of the year.

Kiyosaki urged investors to hedge against inflation with four alternative investments that could protect traders as rising prices weigh on other assets:

1. Gold – The precious metal is considered to be a safe-haven against inflation, and has risen 10% since the start of the year. Kiyosaki has touted gold for years, and previously referred to gold, silver and bitcoin as “real money” as opposed to fiat currency, which he calls “trash.”

2. Real estate – Kiyosaki said he owned apartment houses, office buildings, and various other commercial real estate assets. Other experts have warned recently that the commercial real estate sector could stumble as credit conditions tighten, with Morgan Stanley warning of a 40% crash in commercial real estate prices from their peak.

3. Gasoline – Gasoline is essential to sectors like travel, Kiyosaki said, suggesting the commodity would stand while other sectors suffer from rising inflation.

4. Food – Food is also essential to the economy, Kiyosaki previously said. In a tweet last year, he touted cans of tuna and baked beans as the “best” investments.

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Kiyosaki’s current investment picks loosely resemble his “five Gs”, a list of five investments he says to buy to “survive any economic crash.” In 2011, the list included gold, guns, ground, grub, and gas.

“I invest with the inflation, not against it,” he added.

Kiyosaki reiterated his lack of faith in the US dollar, adding that he was concerned for the security of bank deposits amid recent failures. Kiyosaki is a frequent economic doomsayer, having previously predicted the worst market crash in world history in 2021.

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