Should Canadians follow Robert Kiyosaki into gold and bitcoin as markets stay uncertain?

For those looking for precious metal exposure, while maintaining diversification, check out:

iShares Gold Bullion ETF (TSX:CGL): Tracks the price of gold bullion (C$-hedged). Recent fund stats show a 52-week range of roughly C$22 to C$41, with strong year-to-date performance (3).
iShares S&P/TSX Global Gold Index ETF (TSX:XGD): This ETF holds global gold miners and tends to move more dramatically than gold itself because mining stocks are equities (4).
Horizons Gold ETF (TSX:HUG): This ETF provides gold exposure through futures, not physical bullion (5).
BMO Gold Bullion ETF (TSX:ZGLD): Launched in March 2024, this ETF offers investors a chance to invest in physical gold held at the BMO vault (6).

Investors should be mindful that gold-miner ETFs, like XGD, can behave very differently from bullion ETFs. Bullion is tied closely to gold’s price. Miners add company risk, operating costs and stock-market risk — which can amplify gains, but also deepen losses.

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Bitcoin is easier to buy and a good alternative hedge

Kiyosaki also argues that Bitcoin is a good hedge against long-term damage from government debt and currency debasement. Whether you agree or not, Bitcoin remains the most widely held cryptocurrency — and the cryptocurrency investment most Canadians start with.

Still, investors should appreciate that Bitcoin’s volatility hasn’t gone away. These days, Bitcoin pricing hovers between US$65,000 to US$75,000, depending on the day and market (7). This is a far cry from October 2023 trading prices which were closer to US$30,000 (8).

Still, Kiyosaki, doesn’t seem bothered by the massive swings (9). Nor was he disturbed by the mid-April 2024 Bitcoin halving event. Because of the original structure of the cryptocurrency, block halving occurs every four years (or 210,000 blocks). The rationale is to help reduce the rate at which Bitcoin is generated (this periodical event is programmed into Bitcoin's code). For context, when Bitcoin was first released, a block reward was 50 BTC. After the April 2024 halving event, the block reward was reduced to 3.125 BTC (from 6.25 BTC).

The reason for the block halving was to mimic the inflationary erosion of regular fiat currencies (like the US or Canadian dollar or the British Sterling pound). To mimic fiat currencies, Bitcoin was artificially capped at 21 million BTC. That means that no additional coins can be made once 21 million BTC are created. This finite supply, alongside potential changes as more people invest in the cryptocurrency, makes Bitcoin a resource like gold — limited supply that cannot be artificially created or increased.

While none of this guarantees higher prices, it does explain why some investors choose to allocate a small portion of their portfolio to Bitcoin: it’s a scarce, high-volatility asset that can behave differently than traditional markets.

The good news is it's relatively easy to buy Bitcoin these days. There are many online exchanges, brokers and even ATMs where you can complete a transaction, conversion or purchase. Just be warned that some conversion methods can charge up to 4% in commission fees, so look for options that charge low or even zero commissions.

How Canadians can use alternative investments

If you’re curious about gold, silver or Bitcoin, a practical approach to adding these alternative investments can follow the following guidelines:

Start small: For many diversified portfolios, alternative assets are a modest slice, not the main course.
Use a rules-based amount: Decide your maximum allocation in advance and rebalance on a schedule (not on emotion).
Know what you own: Bullion ETFs, miners and futures-based funds can react very differently in the same market.
Watch fees and spreads: Crypto platforms and brokerages may charge spreads, trading fees or staking fees that reduce returns.
Keep the rest of your portfolio boring: Alternatives work best as diversifiers alongside broad, low-cost stock ETFs and clear long-term investment plans.

Bottom line

Kiyosaki’s headlines grab attention, but the smarter move is simpler: Diversify thoughtfully, keep costs down and avoid making big portfolio bets based on anyone’s prediction — even a famous one.

— with files from Jing Pan