‘Biggest crash in world history’ hits in October — 3 ways to protect

The looming default of Evergrande — the second largest property developer in China — continues to send nervous vibes across global markets.

And “Rich Dad Poor Dad” author Robert Kiyosaki is predicting a major crash because of it.

“HOUSE of CARDs coming down. Real estate crashing with stock market,” Kiyosaki tweeted last week. “China’s Evergrande Group cannot pay. Valuation of properties fake. Will real estate crash spread to US? Yes.”

He also told Kitco News on Wednesday that this “is going to be the biggest crash in world history.”

The good news? Kiyosaki also provided some suggestions on how to prepare for the seemingly inevitable downturn.

He proposed investing in the following three assets — they might be worth sprinkling some of your spare change on.

Gold

This is Kiyosaki’s simplest recommendation. For centuries, gold has been the go-to safe haven asset.

It can’t be printed out of thin air like fiat money, and its value is largely unaffected by economic events around the world.

Investors often rush toward gold in times of crisis, so it makes sense to get ahead of the pack.

Case in point: In the first six months of 2020 — when the stock market went on a rollercoaster ride due to the COVID-19 pandemic — increasing demand for the yellow metal drove its price from $1,509 to $1,772 an ounce.

The most direct way to play gold is to own bullion. But that can be difficult and expensive. An easier method is to invest in large gold mining companies.

If gold prices go up, these miners will earn higher revenue and profits, which tend to translate into higher share prices.

For instance, companies like Barrick Gold, Newmont, and Freeport-McMoRan typically do well during tough times for other sectors.

And these days, you can build your own doomsday portfolio just by using digital nickels and dimes.

Silver

It’s also no surprise that Kiyosaki likes silver. Just like gold, silver can be a store of value and a hedge against rising rates and inflation.

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The grey metal may not seem exciting, but it can be a highly effective holding during times of uncertainty. Over the past two years, the price of silver has increased by more than 30%.

As you’d expect, rising silver prices benefit silver miners.

Some of the easiest ways to play a looming silver boom are through big miners like Wheaton Precious Metals, Pan American Silver, and Coeur Mining.

That said, silver is also widely used as an industrial metal. So a downturn in global economic activity could negatively impact silver prices.

Bitcoin

Once considered a niche asset, Bitcoin has now entered the mainstream.

You can purchase Bitcoin directly. But if you don’t like that kind of volatility, you can also invest in companies that have tied themselves to the crypto market.

Tesla, for instance, owns about 42,000…