Kiyosaki vs Suze Orman on Gold: Who's Right About Precious Metals?
Comparing Robert Kiyosaki and Suze Orman's views on gold, precious metals investing, and retirement planning. Two financial icons with opposing views.
Key Takeaways
- 1Kiyosaki strongly advocates for gold; Orman is skeptical
- 2Orman focuses on debt elimination and emergency funds first
- 3Kiyosaki sees gold as protection against dollar collapse
- 4Orman prefers diversified ETFs and low-cost index funds
- 5Both agree on importance of financial education
- 6Your situation determines which advice is more relevant
Two Financial Icons, Two Different Approaches
Robert Kiyosaki (Rich Dad Poor Dad) and Suze Orman are both hugely influential financial educators, but they often give completely opposite advice.
- **Kiyosaki**: Entrepreneur, real estate investor, precious metals advocate
- **Orman**: Former financial advisor, TV personality, consumer advocate
- **Kiyosaki audience**: Aspiring investors wanting to build wealth
- **Orman audience**: Middle class Americans managing household finances
- **Key difference**: Kiyosaki focuses on acquiring assets; Orman on security first
On Gold: Where They Completely Disagree
Gold is perhaps the biggest disagreement between these two financial educators.
- **Kiyosaki on gold**: "Gold is God's money"—strongly advocates holding physical gold
- **Orman on gold**: Generally skeptical; prefers diversified portfolios
- **Kiyosaki reasoning**: Protection against dollar collapse and inflation
- **Orman reasoning**: Gold doesn't pay dividends or interest
- **Kiyosaki allocation**: Substantial position in gold and silver
- **Orman allocation**: If any, small percentage in gold ETFs
The Core Disagreement
Kiyosaki sees gold as essential protection against systemic risks. Orman sees it as speculation that doesn't produce income. Both perspectives have merit depending on your goals.
On Debt: Different Risk Tolerances
Their views on debt reveal fundamentally different approaches to risk.
- **Kiyosaki**: "Good debt" buys assets that produce income
- **Orman**: Eliminate all debt before investing (except mortgage)
- **Kiyosaki**: Leverage is how the wealthy build portfolios
- **Orman**: Debt is stress that affects your quality of life
- **Agreement**: Both say consumer debt (credit cards) is bad
Know Your Risk Tolerance
Kiyosaki's leveraged approach works in rising markets but can be devastating in downturns. Orman's debt-free approach is safer but slower for building wealth.
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On Retirement Planning
Their retirement advice also differs significantly.
- **Kiyosaki**: Create passive income through assets (real estate, businesses, gold)
- **Orman**: Max out 401(k), Roth IRA, build diversified portfolio
- **Kiyosaki**: Don't rely on paper assets controlled by Wall Street
- **Orman**: Low-cost index funds are the best choice for most people
- **Kiyosaki on Social Security**: Don't count on it
- **Orman on Social Security**: Delay until 70 for maximum benefit
Who Should You Follow?
The answer depends on your financial situation and risk tolerance.
- **Follow Orman if**: You have debt, no emergency fund, or are risk-averse
- **Follow Kiyosaki if**: You're debt-free, have capital, and can handle risk
- **Consider both**: Orman's foundation + Kiyosaki's wealth-building
- **On gold specifically**: A moderate allocation satisfies both views
- **Key insight**: 5-15% in gold provides insurance without speculation
The Balanced Approach
Start with Orman's fundamentals (emergency fund, no consumer debt). Then consider Kiyosaki's approach to asset diversification, including precious metals.
Finding Balance on Gold
A Gold IRA represents a middle ground: it's a tax-advantaged account (which Orman would approve) holding physical gold for portfolio insurance (which Kiyosaki advocates). You don't have to choose one philosophy entirely.
A Balanced Approach to Gold
Rather than choosing between Kiyosaki's heavy gold allocation and Orman's skepticism, a moderate allocation in a Gold IRA provides portfolio insurance.
- Tax-advantaged structure satisfies traditional planning
- Physical gold provides Kiyosaki-style asset protection
- 5-15% allocation is a reasonable middle ground
Frequently Asked Questions
1What does Suze Orman think about gold?
Suze Orman is generally skeptical about gold as an investment. She points out that gold doesn't pay dividends or interest and prefers diversified portfolios with low-cost index funds. If recommending gold at all, she suggests a small allocation through ETFs rather than physical metal.
2What does Robert Kiyosaki say about gold?
Kiyosaki strongly advocates for gold, calling it "God's money." He recommends substantial holdings in physical gold and silver as protection against inflation, dollar weakness, and potential economic collapse. Gold is a core part of his investment strategy.
3Who is right about gold—Kiyosaki or Orman?
Both have valid points. Orman is right that gold doesn't produce income and can be volatile. Kiyosaki is right that gold has preserved purchasing power for thousands of years. A moderate allocation (5-15%) may satisfy both perspectives.
4Should I follow Kiyosaki or Suze Orman?
If you have debt or no emergency fund, start with Orman's advice. If you're financially stable and want to build wealth, Kiyosaki's approach may be more relevant. Many successful people combine elements of both philosophies.
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