‘Rich Dad, Poor Dad’ author Robert Kiyosaki has cautioned about the significant rise in the yield on one-month treasury bill asking his Twitter followers to stick with gold, silver and Bitcoin BTC/USD.
“OMG. “The best collateral “in the world, the 1 month T-Bill went up by 100 basis points. Does this mesn (sic) the world banking system is collapsing? So much for all those experts who recommended 1 month T-Bills. Stick with Gold, Silver, Bitcoin, and home defense now….not tomorrow,” he tweeted.
Spot gold was trading 0.17% higher near the $2,020 per ounce level during Monday morning Asian trade. The SPDR Gold Trust GLD and the iShares Gold Trust IAU closed over 1.5% lower on Friday.
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Kiyosaki’s comments come in the wake of the U.S. Treasury Department selling one-month bills at the highest-ever yield for the tenor. The government on Thursday sold $50 billion of four-week securities at a record yield of 5.84% which is the highest for any Treasury bill issue since 2000, reported Blomberg.
Why It Matters: The record yields signal fear among investors after Treasury Secretary Janet Yellen warned the government could run short of cash as soon as early June as the debt ceiling impasse continues.
It is noteworthy that investors are willing to pay such a high yield for short-term securities during an auction when a risk-on environment prevails. In other words, market participants are diverting funds into safe-haven instruments, like treasuries, to prevent any potential melt-down in their portfolios in case the default actually takes place and markets go for a toss.
Kiyosaki, who is a gold bull, also sounded out alarms about a possible crash in his tweet. “FINANCIAL PANDEMIC started. Crash is now…,” he said.
Photo: Courtesy of Wikimedia Commons
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Image and article originally from www.benzinga.com. Read the original article here.