Kiyosaki Warns Dollar on Decline Amid BRICS Gold-Backed Currency Rumors

Robert Kiyosaki Warns of Dollar Collapse as BRICS Rumours Intensify

Robert Kiyosaki, author of the Rich Dad Poor Dad series and a vocal critic of the U.S. dollar, has renewed his warning that the greenback is on the decline. In a recent post on X, Kiyosaki claimed that the BRICS group-comprising Brazil, Russia, India, China, and South Africa- has announced a "gold-backed" currency called the Unit. He urged investors to move assets into gold, silver, Bitcoin, and Ether to avoid potential hyperinflation and dollar losses.

Kiyosaki's remarks came amid renewed speculation about BRICS' monetary ambitions, particularly after Russian President Vladimir Putin met with Indian Prime Minister Narendra Modi during a high-profile diplomatic visit. While BRICS officials have not officially confirmed a new currency, Kiyosaki insists the shift is imminent and will redefine global finance.

The U.S. dollar's recent strength has weighed on commodities like gold and silver, which often serve as hedges against inflation. Meanwhile, the BRICS nations have long explored alternatives to the dollar-dominated SWIFT system, citing concerns over the weaponization of U.S. financial influence.

The BRICS Currency Debate

The idea of a BRICS currency has resurfaced multiple times over the past two years, most notably in October 2024 when Putin was photographed holding a prototype of a BRICS banknote during the Kazan Summit. While the image sparked global speculation, officials have since clarified that the group has no immediate plans to launch a single currency. Instead, they aim to increase the use of local currencies and expand the role of the New Development Bank.

Putin has acknowledged the growing interest in reducing reliance on the dollar but has downplayed the idea of a unified BRICS currency. "We are not refusing, not fighting the dollar, but if they don't let us work with it, what can we do?" he stated, emphasizing the need for alternative financial channels.

Despite official caution, Kiyosaki's warnings reflect a broader trend of de-dollarization and a shift toward gold-backed systems. The BRICS group's collective economic weight-accounting for nearly 40% of the global population- has amplified concerns about a potential realignment of global monetary power.

Investor Reactions and Risks

Kiyosaki's endorsement of gold and cryptocurrencies has found an audience among investors wary of U.S. monetary policy. His previous calls for silver as a "safest" investment have gained traction as inflation concerns persist in key economies, including Argentina, where hyperinflation remains a challenge.

However, experts argue that Kiyosaki's warnings may be overstated. While BRICS nations are exploring financial cooperation, no concrete steps have been taken toward a unified currency. Analysts also note that a dollar collapse would require a massive breakdown in U.S. fiscal stability, which remains unlikely in the near term.

For now, the market remains split. U.S. banks like JPMorgan and Citigroup continue to expand their asset bases, while regional banks such as Huntington Bancshares and Fifth Third Bancorp have seen significant growth through mergers and acquisitions. Meanwhile, cryptocurrencies and gold prices remain volatile, influenced by both geopolitical developments and dollar fluctuations.

What This Means for Investors

Investors are being advised to consider a diversified approach, balancing exposure to traditional assets like equities and real estate with alternatives like gold and cryptocurrencies. Kiyosaki's warnings highlight the potential risks of holding large amounts of fiat currency, particularly in an environment of rising inflation and geopolitical uncertainty.

However, the absence of a confirmed BRICS currency means that investors should proceed cautiously. While gold and silver have historically served as stores of value, they also carry their own risks, including market volatility and storage costs. Cryptocurrencies, meanwhile, remain unproven as long-term stores of value, despite their growing appeal among certain investor groups. Analysts argue that crypto remains unproven as a long-term store of value.

As the debate over de-dollarization continues, the coming months will be critical in determining whether BRICS can make meaningful progress toward a new financial order. For now, Kiyosaki's calls for a "gold-backed future" remain speculative, but they underscore a broader shift in how investors are thinking about risk, inflation, and the global monetary system.