You know theres a problem when even Kiyosaki starts saying get out of RE and into gold and oil

http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2005/07/24/REGKEDRPF11.DTL&hw=rich+dad&sn=001&sc=1000

Linked!

I wouldnt dispute that, but the article also raises some good points abotu what novices are doing without enough thought-

They are using their own home and equity as an "ATM".

They are betting on future appreciation instead of current cashflow.
See some impending disasters here

Novices are overleveraging - they wouldnt cashout their home to buy stocks on margin, but they are doing so to buy RE? Whats the difference?

Kiyosaki is probably right about the getting out of RE but he's definitely not the first nor the only one saying that.
The thing that really bugs me is him recommending buying gold and oil.
OK, so he thinks gold will go up. Fair enough.
But quoting him:
"If you want to be smart, buy gold coins."

what the heck is that? buying gold coins is not buying gold. Please.
If you are really interested in buying gold, you can considering buying gold futures or even better, the relatively new gold ETF.

The more he talks, the more he displays his ignorance of financial instruments.

bestcreation said: ...buying gold coins is not buying gold.

To quote you back to yourself, "Please."

Your post communicates that you have a clear preference for electronic liquidity. The preferences of others may differ significantly from yours.

JS

For a very thorough analysis of Robert Kiyosaki's business acumen (or lack thereof), you should check out

http://www.johntreed.com/Kiyosaki.html

This was written by someone who actually knows the real estate industry, unlike Kiyosaki who spouts a lot of talk but doesn't actually back it up with any real analysis.

I would take anything that Kiyosaki says with a grain of salt.

- Flatwell

Justsomebody said: bestcreation said: ...buying gold coins is not buying gold.

To quote you back to yourself, "Please."

Your post communicates that you have a clear preference for electronic liquidity. The preferences of others may differ significantly from yours.

JS

I do not have "a clear preference for electronic liquidity". My preference is actually using financial instruments that are able to retain the value of your investments.
Why buy gold coins and paying (higher)transaction costs and worrying about where to keep your coins when all you want is exposure to gold?
In other words, do you want to play flip the (gold)coins with your nieces and nephews or do you want to invest in gold?

If I may venture a guess, your post communicates a clear preference for Kiyosaki's flawed reasoning.

Yesterday's real estate data shows the US real estate market is red red hot with the median house price gaining 15% year on year.....biggest gain in history. Greenspan is starting to sweat as his ultra low interest rate policy to keep the US consumer on a morphine drip and the manipulation of long term US rates by Japan and China have created massive unintended consequences (namely unprecedented US indebtedness).

Now Greenspan has NEVER used interest rates to squash an asset bubble so it is going to be very interesting to see how the Fed deals with this. Expect alot of jawboning from Fed officials warning against real estate speculation in an environment of rising short term rates.....problem for them is long term rates are staying low to fuel the red hot fire.

Gold is an excellent investment however I would not be trying to top pick this real estate market and short it to go long gold. Signs of a top getting close are that the latest entrants to the re market are people who would not even come close to qualifying for a loan in the past but with extremely easy borrowing requirements are being allowed to borrow massively beyond their means. Koreans are providing way too much liquidity to this market and I don't see how Greenspan can control this. Also rents are not keeping up at all with the rising housing prices and many investors with zero down loans are trying to rent at close to their loan repayments but are about 40% away from market.

Personally feel it is premature to call a top as the bubble has plenty of room to balloon unless Greenspan changes Fed policy to address asset bubbles (highly doubtful). Gold still an excellent investment for any well diversified portfolio as players continue to bail from the euro and the dollar into gold.

TheProfessor2423 said: Mark Twain once said..

Buy land, they stopped making it.

from a nanotech perspective too...

eBay, kitco, searching past threads on gold, etc etc

I am not disputing gold as a store of value. Gold is by far the best store of value you can have.
Nonetheless, Kiyosaki is not talking about buying gold just in case of nuclear fallout or another Holocaust.
He's talking about Gold as an investment, or more specificly a counter-cyclical investment.
He [Kiyosaki] confesses that he's currently dumping real estate that produces no cash flow (from rental income) and going "long on gold and oil."

Oil is not exactly a good store of value, is it? Yet oil is mentioned together with gold because Kiyosaki thinks gold and oil will rise in value.
I am neutral to that statement. My only problem with his analysis is that he recommends buying gold coins to 'long on gold'. That's just wrong.

TheProfessor2423 said: Mark Twain once said..

Buy land, they stopped making it.

Mark Twain was a failure as a business man -- he declare bankruptcy a few times... "Those who can, do. Those who can't teach"; seems like he was "teaching"

-Eleison

Mat said:
I have made over 200k in 6 months with very little money down and virtually no risk.


Does not compute.

zeego said: didYOUsearch said: bestcreation said:
Why buy gold coins and paying (higher)transaction costs and worrying about where to keep your coins when all you want is exposure to gold?. BC many people want more than just exposure to gold....

some keep gold in case of disaster. physical possession of coins is a benefit to them. A stock on a computer screen isnt tangible, and wont do you squat if you need to barter with it.

Many Jews escaped with their families from Nazi Germany by bribing and bartering with gold coins. Some conservative investors keep gold coins hidden and available in the event of civil unrest and chaos. No one is sounding an alarm, but remember, Sarajevo and Kosovo were once civilized cities. Things happen quickly and unexpectantly. Gold coins make sense for unforeseen circumstances.

If things get that bad, I'd like my gold in the form of bullets, not coins.

didYOUsearch said: http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2005/07/24/REGKEDRPF11.DTL&hw=rich+dad&sn=001&sc=1000

please!
a year ago when i moved to phoenix he was shouting that the phx real estate was way overpriced and he was getting out. unfortunately i waited for a while before buying so i lost good money there.
i am pretty sure his big bucks come from books not from great deals he made. he will be ok.

Does this mean my REIT fund will slowly crash and burn?

comixguru said: thetrump said: Mat said: There are a lot of talker here but who is taking action?
I have made over 200k in 6 months with very little money down and virtually no risk.
I intend to ride this wave all the way if it crashes I will get on the next one.
Care to elaborate?

I suspect he jumped on a property 6 months ago and it's now worth 200K more than when he bought it. It could be less broker's fees, less taxes, less AMT gouging. Still, it's a nice chunk of change. No debating that.That's what I suspect too. However, if that's the case then his claim of 'virtually no risk' is preposterous.

eleison said: TheProfessor2423 said: Mark Twain once said..

Buy land, they stopped making it.

Mark Twain was a failure as a business man -- he declare bankruptcy a few times... "Those who can, do. Those who can't teach"; seems like he was "teaching"

-Eleison

I'd take whatever he said with a grain of salt. He was a writer, not an economist.

viteazu said: didYOUsearch said: http://www.sfgate.com/ETC

please!
a year ago when i moved to phoenix he was shouting that the phx real estate was way overpriced and he was getting out. unfortunately i waited for a while before buying so i lost good money there.
i am pretty sure his big bucks come from books not from great deals he made. he will be ok.

Are you saying he was wrong, simply bc he gave advance warning of the impending downturn? Seems like timely advice to me. LAS and PHX have experienced declines recently.

for the record, i generally think all the infomercial "gurus" are lacking in knowledge and peddling to some of the worst candidates for investing...

I know they make their money from the infomercials, not the underlying investment, and I dont follow kiyosaki and certainly dont idolize him.

I posted this thread to show just how crazy the RE market has become-when even one of RE's biggest cheerleaders is now saying "whoa" when he sees some of the stuff going on.

so was hundreds of other articles on the front cover of magazines such as Times, Economist, Money, etc.

Didn't he also wrote about a book called prophecy about the biggest financial meltdown happening *soon*?
Wait long enough and anything can happen.

hey, I prophesize that it will snow, i dunno, around december.
mark my words. give me fame and fortune if I am right.