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By referencing Portfolio Shield’s creator, Steven Van Metre, Robert Kiyosaki cautioned that gold prices might be on the verge of a significant correction that could reduce its value by half.
Simultaneously, he reiterated his view that “cash is trash” and expressed his confidence in both the yellow metal and bitcoin.
Is Gold Set for a Significant Decline?
The precious metal has historically been regarded as a reliable safe haven investment, especially during periods of economic instability. The last few years have certainly been marked by uncertainty, highlighted by a global pandemic, ongoing conflict in Ukraine, and soaring inflation worldwide.
The price of bullion surged during the initial phase of the COVID-19 pandemic, reaching over $2,000 to establish a new all-time high. However, its performance since then has been rather inconsistent. It fell below $1,700 a few months later, attempted to reach $2,000 again in 2022, but faced another correction that brought it back down to $1,600 last November.
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Nonetheless, gold enthusiasts sparked a new price rally that brought the asset close to its all-time high. It was unable to surpass this level and currently trades below $2,000 per ounce. According to Van Metre’s recent analysis of the SPDR Gold Shares, their price is likely to face further correction as the RSI has recently declined, while the MACD indicates a “negative cross.”
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By highlighting the triple top, which exhibited decreasing volume with each successive attempt, Van Metre concluded that gold could potentially decline by as much as $1,000, effectively halving its USD value.
Kiyosaki’s Perspective on Gold and BTC
The author of Rich Dad, Poor Dad has long supported the yellow metal, as well as silver and, more recently, bitcoin. However, he also cautioned that Van Metre’s pessimistic outlook for gold could materialize as investors and markets are “tired of waiting” for the bullion to rise.
If gold were to indeed drop by up to 50% from its current level, Kiyosaki stated he would purchase more, as he identifies as an investor rather than a trader. Concurrently, he reaffirmed his confidence in BTC, for which he recently elaborated on his enthusiasm, while also rejecting the idea of holding cash, labeling it as “trash.”
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