Gold prices are soaring — and veteran investor Ray Dalio believes it’s time for investors to hold more of it.
The Bridgewater Associates founder said at a recent event that investors should allocate about 15% of their portfolio to gold, citing its strength as a hedge against economic uncertainty and market downturns.
“Gold is an excellent diversifier in a portfolio,” Dalio said, according to a CNBC report. “If you look at it just from a strategic asset allocation perspective, you would probably have something like 15% of your portfolio in gold.”
Gold futures are currently trading near $4,000 per troy ounce, marking a 50% rise this year — a surge that has also boosted other precious metals. Dalio noted that gold tends to perform well when traditional assets, such as stocks and bonds, fall.
In previous remarks, he had recommended a 10–15% allocation but now appears to favor the higher end of that range. Dalio also said he prefers gold over U.S. Treasurys as a safe-haven investment amid rising fiscal and geopolitical risks.
📈 Why Gold Is Rising
According to LPL Financial Chief Technical Strategist Adam Turnquist, the latest rally in gold is being fueled by U.S. government shutdown concerns, deficit fears, and inflation pressure. He also pointed to foreign central bank buying and a weaker dollar as key drivers.
“The macro backdrop — consisting of a weaker dollar, the resumption of rate cuts, U.S. deficit concerns, and tariff-related inflation angst — continues to underpin support for gold this year,” Turnquist wrote in a note on Tuesday.
💰 What Other Experts Say
While Dalio’s 15% target is on the higher side of traditional recommendations, some investors share his bullish outlook. Jeffrey Gundlach, founder of DoubleLine Capital, recently said that an allocation as high as 25% may not be “excessive” given current market dynamics.
Most financial planners, however, advise maintaining 5% to 20% exposure to gold, depending on an investor’s risk tolerance and diversification strategy. The metal’s appeal lies in its ability to hedge against inflation, volatility, and currency fluctuations while offering potential long-term appreciation.
🔮 The Bottom Line
With markets navigating uncertainty over interest rates, inflation, and geopolitical risks, gold’s role as a safe-haven asset appears more relevant than ever. For long-term investors, Dalio’s advice reinforces gold’s place as a cornerstone of a well-balanced portfolio — but experts caution that diversification across multiple asset classes remains key.
