Grant Cardone: Here’s Why I Don’t Invest in Gold or Bitcoin
Written by
Gabrielle Olya
Edited by
Gary Dudak
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Different investors have different investment strategies, so not everyone agrees on what makes a “good” investment. For Grant Cardone, fund manager and CEO of Cardone Capital and Cardone Training Technologies, gold and bitcoin are two assets that don’t fit the bill.
Here’s why Cardone doesn’t invest in precious metals or crypto, and what he invests in instead.
Cardone’s 3 Criteria for an Investment
Before investing in anything, Cardone — who will be hosting the 10X Wealth Conference in Miami on Oct. 9-10 — assesses whether or not it meets his specific criteria.
“No. 1 for me is, I don’t want to lose my money,” he told GOBankingRates. “No. 2 for me is, will I get cash flow? No. 3, the perfect scenario would be not only won’t I lose it and I get cash flow, but it’s going to go up in value over long periods of time.”
Assets He Avoids
Cardone doesn’t invest in gold because it does not meet his criteria for a good investment.
“I would never invest in gold,” he said. “I’ve had opportunities for years to invest in gold. I would never invest in gold because it doesn’t cash flow, and I can’t write it off. I’m probably not going to lose my money, because I’m still going to have the gold — gold is better than cash — but it doesn’t cash flow.”
Cardone compared investing in gold to gambling.
“When it appreciates, I have to sell it,” he said. “And once I sell it, I have to find another investment. This is the game. This is a casino — I win at blackjack, I go to the craps table. I win at craps, now I’m going to go to the slot machines, and I lose all my money.”
While Cardone sees more utility in investing in cryptocurrencies like bitcoin, it still doesn’t meet his investing criteria.
“Could I support the bitcoin story? I could, but it doesn’t cash flow, I don’t get a tax write-off,” he said.
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Why He Favors Real Estate
Cardone’s go-to investment asset is real estate, which meets all of his criteria.
“When I was 30 years old, I started looking for the asset class where I couldn’t lose money,” he previously told GOBankingRates. “That means I can’t just save money because money is going down in value. I can’t be in the stock market because I could lose money.
“No. 2, I need passive income from my investment,” Cardone continued. “No. 3, I want some appreciation in the asset over long periods of time. And No. 4, I’d like to get some tax write-offs because taxes are everybody’s biggest expense, no matter what income bracket you’re in. So what fits those four criteria? There’s only one asset class that does all that. It’s not gold, silver, bitcoin or the stock market — it’s real estate.”
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