Benzinga - ‘Rich Dad, Poor Dad' author Robert Kiyosaki believes even if gold plunges to $1,000 per ounce, he would still be a buyer as the yellow metal, silver and Bitcoin (CRYPTO: BTC) are real money while cash is trash.
What Happened: Kiyosaki's comments follow expert Steven Van Metre's remarks in his recent YouTube video where he stated gold prices are about to plummet.
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"GOLD to CRASH. Steve Van Meter (sic) whom I respect predicts gold to crash to $1000. He states markets are tired of waiting for gold to go higher. If gold drops to $1000 I will buy more. I am an investor not a trader. To me, Gold, Silver, &Bitcoin are real money. To me Cash is trash," he tweeted.
Last week, Kiyosaki cited contrarian arguments on gold by Van Metre and David Hunter, saying it is important to consider opposing views and figure out the logic that drives buyers and sellers.
Price Action: Gold prices had declined sharply on Friday, dragged by hawkish comments by Federal Reserve officials that strengthened bets for at least one more interest rate hike. Two central bank officials on Thursday reiterated the need for more interest rate hikes to rein in inflation just as the Fed is set to enter a silent period from April 22 to May 4, ahead of its next monetary policy announcement.
Bob Haberkorn, senior market strategist at RJO Futures, told Reuters last week while a rate hike will initially dull gold’s appeal, an eventual pause will push gold to its recent all-time highs. "…the Fed has a breaking point where they can’t go anymore on rates without doing significant damage to the economy," he added.
Spot gold was trading at $1,980 per ounce during Monday morning Asian trade after having breached the $2,000 per ounce mark last week. In recent times, many experts have been asserting that gold was ready for a surge beyond the $2,000 per ounce level. However, the yellow metal has been finding it difficult to convincingly breach and rally beyond the mark.
The SPDR Gold Trust (NYSE:GLD) and the iShares Gold Trust (NYSE:IAU) closed about 1% lower on Friday.
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