The analogy used by Kiyosaki makes it clear that in times of crisis or financial instability, physical ownership can be more useful than digital representations or financial contracts.
Robert Kiyosaki on his Youtube channel, Photo: reproduction
The author of the bestseller 'Rich Dad Poor Dad', Robert Kiyosaki, has issued a new warning about the difference between investing in real assets and paper financial products. In a post on X, Kiyosaki compared ETFs (exchange-traded funds) to images, saying that while they may be useful, they do not replace the physical ownership of assets.
"ETFs make investing easier for the average investor… that's why I recommend them. But I leave these words of caution," he wrote.
Kiyosaki stated that he recommends gold, silver, and Bitcoin ETFs as viable alternatives for investors seeking exposure to assets, but warned that they do not guarantee the same protection or control as owning the assets directly.
"An ETF is like having a picture of a weapon for self-defense. Sometimes it's better to have gold, silver, Bitcoin, and a real weapon," he added.
Beware of ETFs, says Robert Kiyosaki
The analogy used by Kiyosaki makes it clear that in times of crisis or financial instability, physical ownership can be more useful than digital representations or financial contracts.
ETFs are exchange-traded funds that track the price of assets, such as gold or Bitcoin, without the investor necessarily owning those assets directly.
In the case of Bitcoin, for example, the fund may hold the cryptocurrency on behalf of the shareholders, but the investor does not have direct access to the bitcoin, nor control over private keys.
Physical ownership of assets — such as gold coins, silver bars, or bitcoins in self-custody wallets — offers direct control, but requires more responsibility and security precautions.
"Know when to use cash and when to use paper"
Kiyosaki concluded the message with advice for his followers:
"Know the difference between when it's better to have cash and when it's better to have paper. If you understand these differences and know how to use them… you are above average."
The author has been a consistent advocate for real assets as protection against the collapse of the traditional financial system.
In recent years, he has been warning about systemic risks in the market and encouraging his followers to prepare with investments in precious metals, real estate, and Bitcoin.