Author of best selling book – Rich Dad Poor Dad – Robert Kiyosaki has warned that the price of gold could be heading toward a massive correction that could see its value slashed int0 half.
At the same time, he still believes that “cash is trash” and reaffirmed his belief in the yellow metal as well as bitcoin.
The precious metal has been recognized over a long-time as a safe haven investment tool, considering its history and performance in economic downtimes. To say the least, the past few years have indeed been uncertain, with the breakout of a global pandemic, the war in Ukraine, and an increase in the inflation rates worldwide.
During the early days of the COVID-19 pandemic, Gold skyrocketed and topped $2,000 creating a new all-time high. However, since then its performance has become somewhat shaky. Dropping below $1,700 after a few months, tried to recover $2,000 once again in 2022 before correcting back down to $1,600 last November.
Regardless, the gold bugs have propelled a new surge in price that helped the asset rally close to its ATH. Although it failed to break through it and currently trades under $2,000/oz. According to the latest analysis by Van Metre’s on SPDR Gold Shares, it is speculated that the price will correct further considering the recent decline of the RSI, coupled with the MACD showing a “negative cross.”
Having outlined the triple top, which at each attempt had less and less volume, Van Metre concluded that the USD value of gold may be slashed into half as the asset could go down by up to $1,000.
Although Rich Dad, Poor Dad’s author has been an advocate of gold for a long-time, as well as silver, and bitcoin, in recent times. However, he also has warned that Van Metre’s doomsday prediction for gold could play out as both the markets and investors are “tired of waiting” for the asset to price higher.
Kiyosaki added that should the price of gold plummet by up to 50% from its current position as speculated, he as an investor would buy more. At the same time, he reiterated his belief in Bitcoin, recently explaining why he loves it, and also dismissed storing any cash as according to him, it is “trash.”
Featured Image Source: Business Insider
