Investing like an Olympic athlete
Like most of America, I've been glued to my television for the past few weeks watching US athletes dominate in the 2016 Rio Olympics. The USA has already wracked up dozens of gold, silver, and bronze medals in a variety of sports.
That's a lot of hardware!
If you've been with Rich Dad for a while, you know that one of the four asset classes is commodities. Commodities are natural resources like oil, gas, and agriculture.
One of my favorite commodities is precious metals, which includes gold and silver. And while you might not be an Olympic-level athlete, that doesn't mean you can't invest like one.
The Olympic gold medals aren't solid gold, though they used to be. According to a great infographic from Coinweek, the Olympic gold medals are 6g of pure gold and 525g of silver, with a little copper mixed in, making them still pretty valuable. In fact, each medal is worth between $500-$600 at today's gold/silver value.
That makes an Olympian like Michael Phelps worth hundreds of thousands of dollars, from his medals alone!
Why you should invest in commodities
Paper money is unstable. We learned that very recently with Brexit (which Robert wrote about here). Since President Nixon took the dollar off the gold standard, paper currency is backed by nothing but a promise.
That's why investing in commodities, like gold and silver, is a solid financial strategy. Gold and silver are finite resources. The government can't create more whenever they want to.
They are also true money, meaning they have intrinsic value and can be used to purchase other items that have value.
Currency, on the other hand, isn't always valuable. For example, take out your wallet and find the highest bill you have. Maybe it's $5 or $100. You probably feel good having a little cash in your hands. But take away the promise of the government, and what do you have? A piece of paper. And that paper alone won't buy you anything.
Go for the gold
Gold has been valuable throughout history. The value of currencies used to be determined based on the amount of gold the government had stocked away. It's familiar, safe, and it will always be valuable.
In fact, I believe everyone should have a little gold in their investment portfolio, as a hedge against future financial turmoil.
Silver isn't settling
Silver is also a smart investment. There might be some athletes who are disappointed with their silver medal at this year's games, but they shouldn't be! As a consumable commodity, silver is just as valuable as gold. It's used to manufacture things like computers, cell phones, televisions, medicine, and more.
There's actually more gold in the world than silver. With such high demand and limited supply, the value of silver is climbing. According to the Washington Post, and silver prices are up 20% since Brexit, and gold prices are up 8%. So when you think about it, silver doesn't always mean second place.
Where do I begin?
Maybe you don't have an Olympic medal lying around at home, but there are ways you can begin your own portfolio of gold and silver. Buying gold bullion coins or bars is a great place to start. You can also start collecting silver coins, which is not only a great financial investment, but can be a lot of fun!