Billionaire investor and Bridgewater Associates founder Ray Dalio really helpful that traders take into account allocating as much as 15% of their portfolios to gold, at the same time as the dear metallic reached an all-time excessive exceeding $4,000 an oz..
“Gold is a really wonderful diversifier within the portfolio,” Dalio stated on the Greenwich Financial Discussion board in Connecticut on Tuesday.
“In the event you have a look at it simply from a strategic asset allocation perspective, you’ll most likely have one thing like 15% of your portfolio in gold … as a result of it’s one asset that does very effectively when the standard components of the portfolio go down,” he added.
Gold costs hit a document excessive
The billionaire investor’s remarks come at a time when the Gold futures in New York surged over its $4,000 per ounce mark for the primary time on Tuesday, 7 October 2025.
Comex gold futures rose over 0.79%, surpassing $4,000 per ounce and hitting a document excessive in comparison with their final shut $3,976.30, based on a report from the information company AP.
Comparability with the early Nineteen Seventies
Dalio in contrast the current atmosphere with the early Nineteen Seventies, when inflation, heavy authorities spending and excessive debt hundreds eroded confidence in paper belongings and fiat currencies.
“It’s very very like the early ’70s … the place do you set your cash in?” he stated. “When you’re holding cash and you set it in a debt instrument, and when there’s such a provide of debt and debt devices, it’s not an efficient storehold of wealth,” he instructed.
Dalio’s advice differs from the same old portfolio recommendation given by monetary advisors, who counsel traders principally maintain shares and a few bonds in a 60-40 cut up. Various belongings, corresponding to gold and different commodities, are sometimes instructed to comprise a small single-digit share of any portfolio as a result of they don’t generate revenue, based on a report by CNBC.
DoubleLine Capital CEO Jeffrey Gundlach not too long ago suggested allocating as much as 25% of the portfolio to gold, citing inflationary pressures and a weakening greenback as causes he expects gold to stay distinguished.
Dalio acknowledged that gold serves as a hedge during times of financial debasement and geopolitical instability.
“Gold is the one asset that anyone can maintain and also you don’t need to depend upon anyone else to pay you cash for,” he stated.
