Last Year 'Rich Dad, Poor Dad' Author Pitched For Silver Over Gold For This Reason

Robert Kiyosaki, the author of ‘Rich Dad, Poor Dad’ said last August that he preferred to buy silver over gold.

“For 20th Century the gold:silver ratio was 47:1…47 oz of silver=1 oz gold. Today 85:1. Why I suggest 'buy silver.' For $25 bucks everyone can buy a silver coin,” Kiyosaki tweeted.

FYI Gold Silver Ratio oldest tracked rate in history: For 20th Century the gold:silver ratio was 47:1…47 oz of silver=1 oz gold. Today 85:1. Why I suggest “buy silver.” For $25 bucks everyone can buy a silver coin. Don’t take my word for it. Study. Become rich. Don’t be a fool.

— therealkiyosaki (@theRealKiyosaki) July 29, 2022

The Context: Unlike gold, the majority of the silver produced is used for industrial use. This means a relatively smaller percentage of the metal is available for investment. Despite silver being more abundant than gold, the amounts available for investment remain almost similar for both metals, according to Mining.com.

Also Read: Gold Eyes Record High On Safe-Haven Status, Weak Dollar, Hopes Of Softening Fed: Peter Schiff Sees 'Spectacular' Rally

Price Movement: Spot silver was trading at $20.33/oz on Aug.1, 2022. In mid-July, spot silver was trading at its lowest level in almost two years, below the $19/oz mark. Spot gold was trading close to $1768.49/oz. In July, the yellow metal too had hit levels last seen in March 2021.

Where Is Demand Headed: According to the World Silver Survey 2022 by The Silver Institute, global demand for the metal is projected to rise by 5% whereas the global supply is set to rise by only 3%, reported Mining.com.

Benzinga's Take: Rising interest rates are expected to put downward pressure on silver prices dragged by expectations of sluggish demand. Although the Fed has aggressively hiked rates while indicating the pace of further rate hikes would be slow, there is still a lot of debate on what would be the most ideal neutral rate. Silver prices would find definite support whenever there is a concrete indication of what level the rate hike would peak.

This Story Was Originally Published On Aug. 1, 2022.

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