This post was originally published on this site.
The past few years have been a reminder that markets don’t move in a straight line. Stocks can rally, then pull back. Inflation can cool, then flare up again. And geopolitics can rattle everything from oil to currencies.
That uncertainty is part of why Rich Dad Poor Dad author Robert Kiyosaki keeps pushing the same message: Diversify beyond traditional stocks and bonds, with exposure to “hard assets” like gold, silver and alternative assets, such as bitcoin and real estate. As Kiyosaki wrote in a post on X, formerly known as Twitter (1), the “Definition of insanity is doing the same thing over and over again and expecting things to change.”
Kiyosaki’s worldview is intentionally dramatic, and his price predictions should be treated as opinion, not a forecast. But for Canadian investors focused on money management and long-term wealth-building, the bigger takeaway is worth considering: alternative investments can play a role in building wealth, if you understand the risks, size the position appropriately and stick to a plan.
To help, here is a practical look at gold, silver and bitcoin, plus simple ways Canadians can get exposure without betting the farm.
Gold and silver are often described as hedges — against inflation, against currency weakness and against market stress. While these precious metals don’t produce earnings, the way a business does, these assets hold value — value that can grow when investors are nervous.
Given today’s macroeconomic environment, investors are not more than a little nervous. As a result, spot gold is trading around US$5,000-per-ounce, while silver is around US$80-per-ounce (2).
Kiyosaki has long been a fan of gold and first purchased the asset in 1972. As he has explained in the past, part of his appreciation for this precious metal boils down to his mistrust of federal institutions that control the supply of money.
While Kiyosaki prefers owning physical metals directly, many investors, however, choose ETFs for convenience, liquidity and simpler storage logistics.
Read more: Canadians spent $183B on dining and clothes in 2024. Prioritize these 4 critical investments instead and watch your net worth skyrocket
For Canadian investors, common options include:
For those looking for precious metal exposure, while maintaining diversification, check out:
-
iShares Gold Bullion ETF (TSX:CGL): Tracks the price of gold bullion (C$-hedged). Recent fund stats show a 52-week range of roughly C$22 to C$41, with strong year-to-date performance (3).
-
iShares S&P/TSX Global Gold Index ETF (TSX:XGD): This ETF holds global gold miners and tends to move more dramatically than gold itself because mining stocks are equities (4).
-
Horizons Gold ETF (TSX:HUG): This ETF provides gold exposure through futures, not physical bullion (5).
-
BMO Gold Bullion ETF (TSX:ZGLD): Launched in March 2024, this ETF offers investors a chance to invest in physical gold held at the BMO vault (6).
Investors should be mindful that gold-miner ETFs, like XGD, can behave very differently from bullion ETFs. Bullion is tied closely to gold’s price. Miners add company risk, operating costs and stock-market risk — which can amplify gains, but also deepen losses.
To add gold and precious metals to your investment portfolio, you’ll need a brokerage account. You can start investing with CIBC Investors Edge, where you can trade stocks and ETFs, explore bonds and options and more. Plus, there are no account maintenance charges, depending on the size of your portfolio. Sign up today and get 100 free trades when you use promo code EDGE2526. Plus, get $150 or more cash back. Terms and conditions apply. Offer ends March 31, 2026.
Kiyosaki also argues that Bitcoin is a good hedge against long-term damage from government debt and currency debasement. Whether you agree or not, Bitcoin remains the most widely held cryptocurrency — and the cryptocurrency investment most Canadians start with.
Still, investors should appreciate that Bitcoin’s volatility hasn’t gone away. These days, Bitcoin pricing hovers between US$65,000 to US$75,000, depending on the day and market (7). This is a far cry from October 2023 trading prices which were closer to US$30,000 (8).
Still, Kiyosaki, doesn’t seem bothered by the massive swings (9). Nor was he disturbed by the mid-April 2024 Bitcoin halving event. Because of the original structure of the cryptocurrency, block halving occurs every four years (or 210,000 blocks). The rationale is to help reduce the rate at which Bitcoin is generated (this periodical event is programmed into Bitcoin’s code). For context, when Bitcoin was first released, a block reward was 50 BTC. After the April 2024 halving event, the block reward was reduced to 3.125 BTC (from 6.25 BTC).
The reason for the block halving was to mimic the inflationary erosion of regular fiat currencies (like the US or Canadian dollar or the British Sterling pound). To mimic fiat currencies, Bitcoin was artificially capped at 21 million BTC. That means that no additional coins can be made once 21 million BTC are created. This finite supply, alongside potential changes as more people invest in the cryptocurrency, makes Bitcoin a resource like gold — limited supply that cannot be artificially created or increased.
While none of this guarantees higher prices, it does explain why some investors choose to allocate a small portion of their portfolio to Bitcoin: it’s a scarce, high-volatility asset that can behave differently than traditional markets.
The good news is it’s relatively easy to buy Bitcoin these days. There are many online exchanges, brokers and even ATMs where you can complete a transaction, conversion or purchase. Just be warned that some conversion methods can charge up to 4% in commission fees, so look for options that charge low or even zero commissions.
If you’re curious about gold, silver or Bitcoin, a practical approach to adding these alternative investments can follow the following guidelines:
-
Start small: For many diversified portfolios, alternative assets are a modest slice, not the main course.
-
Use a rules-based amount: Decide your maximum allocation in advance and rebalance on a schedule (not on emotion).
-
Know what you own: Bullion ETFs, miners and futures-based funds can react very differently in the same market.
-
Watch fees and spreads: Crypto platforms and brokerages may charge spreads, trading fees or staking fees that reduce returns.
-
Keep the rest of your portfolio boring: Alternatives work best as diversifiers alongside broad, low-cost stock ETFs and clear long-term investment plans.
Kiyosaki’s headlines grab attention, but the smarter move is simpler: Diversify thoughtfully, keep costs down and avoid making big portfolio bets based on anyone’s prediction — even a famous one.
— with files from Jing Pan
We rely only on vetted sources and credible third-party reporting. For details, see our[ editorial ethics and guidelines*](https://money.ca/editorial-ethics-and-guidelines)).
Twitter: theRealKiyosaki (1, 8, 9); Reuters (2); BlackRock (3); BlackRock (4); Global X (5); BMO (6); Yahoo!Finance (7)
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.