Ray Dalio Warns: 15% of Portfolios Should Be in Gold Amid Global Debt Crisis

Ray Dalio Urges Investors to Increase Gold Holdings Amid Global Debt Concerns Billionaire investor Ray Dalio has advised investors to allocate around 15% of their portfolios to gold, citing the metal's ability to serve as a strong hedge against credit-dependent assets and protect real returns. Speaking at the Greenwich Economic Forum, Dalio linked the recent surge in gold prices to a global shift away from debt assets and fiat currencies, reminiscent of the 1970s. According to Dalio, the rising gold price reflects growing unease among investors about U.S. sovereign risk and efforts to de-dollarize. "We're seeing a shift away from debt assets and towards more tangible assets like gold," he said. Citadel CEO Ken Griffin has also warned that the rally in gold prices signals investor concerns about the stability of the dollar. Dalio's comments come as global debt levels continue to rise, with the United States' national debt reaching $37.8 trillion. Central banks have been increasing their holdings of government bonds, further fueling concerns about the sustainability of credit-dependent assets. "Gold is a key protector of real returns and a strong hedge against inflation," Dalio emphasized. The recent surge in gold prices has been driven by a combination of factors, including rising global debt levels, central bank policies, and investor unease with U.S. sovereign risk. The metal's price has increased by over 20% in the past year alone, outpacing major stock market indices. Industry experts have welcomed Dalio's comments, noting that they reflect growing concerns about the stability of the financial system. "Dalio is right to highlight the importance of gold as a hedge against credit-dependent assets," said one analyst. "As global debt levels continue to rise, investors need to be prepared for potential market volatility." The current status of the gold market remains uncertain, with prices expected to remain volatile in the short term. However, Dalio's comments are likely to have a significant impact on investor sentiment, potentially leading to increased demand for gold as a safe-haven asset. In conclusion, Ray Dalio's advice to investors to increase their gold holdings reflects growing concerns about global debt levels and U.S. sovereign risk. As the financial landscape continues to evolve, investors would do well to heed Dalio's warning and allocate a portion of their portfolios to this tangible and enduring asset. *Reporting by Fortune.*