From Gold Watches to Real Money: Robert Kiyosaki’s Wealth Philosophy

The Story of Four Gold Watches: Luxury or Investment?

When it comes to Robert Kiyosaki, the author of “Rich Dad Poor Dad,” you might think of his financial education courses. Recently, he showcased his collection on social media: four gold Rolex Daytona watches. Hearing this, you might feel that spending tens of thousands of dollars on watches is simply extravagant. However, Kiyosaki argues that this is precisely the trap of a poor mindset and the reason they can’t turn their situation around.

He explains it quite simply: gold watches contain gold, which appreciates over time. In contrast, what about the Apple watch you bought for a few hundred dollars? In a few years, it becomes electronic waste. This is akin to the difference between buying a house and buying toys—one appreciates, while the other depreciates. So, who is the smart one?

The Poor Seek Bargains, the Rich Hoard Value

Kiyosaki believes that poor people love to hunt for small bargains, feeling like they’ve gained something when they see a discount. But this mindset of “saving money is earning money” causes them to miss out on real wealth. He gives the example that the rich don’t stuff their money into piggy banks; instead, they invest in gold, silver, or even gold mines, oil wells, and real estate. Buying gold watches? It’s just wearing assets on your wrist while showing off your taste.

His love for gold and silver is not a recent development. In his eyes, this is “real money,” a gift from heaven. As for government-printed currency (fiat money)? He sees it as “fake,” akin to game currency, lacking real value.

Currency Overload, Increasing Wealth Disparity

Currently, U.S. national debt is as high as a mountain. What’s the government’s countermeasure? Cranking up the printing press to churn out money. Kiyosaki points out a major flaw in this strategy: the rich are getting richer through hard currencies like gold and real estate, while the poor and middle class are left with increasingly worthless paper money, making even eggs feel expensive.

He also mentions a little economics knowledge called “Gresham’s Law”—bad money drives out good money. This means that if there are two types of money in the market, one valuable (like coins) and one worthless (like paper currency), people will hide the good and spend the bad. The result? The streets are flooded with “junk money,” while good items vanish.

The Turning Point of 1971: The Dollar Says Goodbye to Gold

In 1971, U.S. President Nixon pressed a big button: the dollar was decoupled from gold. From then on, the dollar no longer had gold backing it, turning into “fiat currency” determined solely by the government. What happened to gold and silver? They gradually disappeared from the market. Kiyosaki conducted an experiment with a $10 bill and a 50-cent silver coin, asking people which they preferred. Most chose the bill, but he said the rich would choose the silver coin because they know what “real value” is.

Fake Money Buys Real Wealth: Kiyosaki’s Debt Game

Kiyosaki often criticizes paper currency as garbage, yet he loves to use this “garbage” in a clever trick: borrowing money to buy real estate. Why? Because real estate appreciates, while debt becomes less frightening as paper currency depreciates. He states that the rich hoard things that can appreciate, while the poor cling to depreciating paper money, which is why the gap keeps widening.

A Father’s Lesson: Education Does Not Equal Wealth

Kiyosaki also talks about his father, a well-educated man who was dragged down by a poor mindset and never became wealthy. His father always wanted to buy cheap goods rather than valuable ones. This led Kiyosaki to conclude that wanting to get rich requires more than just education; one must also learn to distinguish between real money and fake money, thinking like the wealthy.

What’s Your Choice?

After hearing Kiyosaki’s theory, do you also start to doubt the paper money in your hands? He says that those who hoard paper money are “doomed to lose” because they don’t understand the difference between real and fake money. What do you think? Isn’t it time to rethink what true wealth really is?

Related video: Wearing Wealth: Why Robert Kiyosaki Chooses a Gold Rolex