Dalio Sings Praises of Gold: Upward Trend Not Over, Suggests Investors Allocate 10% of Funds

Bridgewater Associates founder and former CEO Ray Dalio stated that with increasing global debt pressure leading to major currency depreciation, gold and non-legal tender currencies will strengthen. Dalio said, "We will see non-legal tender currencies become increasingly important in terms of wealth and currency reserves." He recommended that investors allocate approximately 10% of their portfolios to gold for diversification. Dalio warned that the United States government's overspending and escalating debt have become "unsustainable," and the world's largest economy is facing a major fiscal crisis that will threaten its monetary order. He estimated (without providing a specific timeline) that the U.S. government needs to sell an additional $12 trillion in bonds to cover the $2 trillion fiscal deficit, $1 trillion interest payments, and $9 trillion in debt extension fees. Dalio also stated that he had proposed to lawmakers in Washington to reduce the fiscal deficit to 3% of GDP, but both parties have been unwilling to control the debt levels. Gold is currently experiencing its strongest upward trend in decades, with a 40% increase this year. This is the most significant annual increase since 1979 when global investors flooded the precious metals market due to inflation concerns. Loose monetary policy and a weakening dollar are favorable for the precious metals market, especially gold and silver, making them the preferred choice in investors' portfolios.