Ray Dalio Recommends 10–15% Gold Allocation for a Balanced Portfolio
Ray Dalio, the billionaire investor and founder of Bridgewater Associates, has advised investors to keep 10–15% of their portfolio in gold. According to him, gold plays a crucial role as a safe-haven asset and works as insurance during uncertain times. He explained that rising U.S. government debt costs are becoming a big risk for the economy, comparing it to “plaque clogging arteries,” a warning sign that investors should not ignore.
Dalio highlighted that gold is different from traditional assets like stocks and bonds. It has a low correlation with them, which means it does not always move in the same direction. During periods of market stress, global crises, or rising debt concerns, gold often holds its value or even increases. This is why it is considered a strong hedge against inflation and financial instability.
Speaking at an event during Abu Dhabi Finance Week, Dalio stressed that investors need to diversify their portfolios to reduce risks. Even though he has stepped back from managing Bridgewater Associates, his insights remain highly respected in the investment community.
For traders and long-term investors, adding gold as part of a diversified investment strategy could provide protection against unexpected downturns. With ongoing debates about U.S. debt, interest rate policies, and global economic growth, Dalio’s call for a larger gold allocation is seen as a practical approach to balance risk and reward.
Impact:
Gold demand could rise as more investors look to protect their wealth. A 10–15% allocation might become a common strategy for those seeking safety and stability
