Currency Wars – Gold is Money – Ray Dalio of Bridgewater Associates says you better own gold
Currency Wars – Gold is Money – Ray Dalio of Bridgewater Associates says you better own gold
Renowned hedge fund guru Ray Dalio, who manages about $120 Billion, talks about the importance of Gold in everybody’s portfolio. Gold right now is the target of several countries as well as investors all over the world as an alternative currency and the metal have been attracting people from all social status as a security instrument against inflation rather than leaving it in cash.
Taken fron CNBC:
Gold Should Be ‘Owned by Everyone’: Dalio
With debt and public spending crises flaring up worldwide, asset buyers should have gold as part of their investment portfolio, famed hedge fund guru Ray Dalio told CNBC on Friday.
Dalio is founder and co-chief investment officer Bridgewater Associates, and this year was named one of Time magazine’s most influential people in the world.
In an exclusive interview with CNBC’s “Squawk on the Street,” he said that the precious yellow metal “should be a part of everybody’s portfolio to some degree, because it diversifies the portfolio. It is the alternative money.”
His comments come as interest in gold [XAU= 1751.90 -8.14 (-0.46%) ] among investors has been on the upswing, with the metal flirting with new highs for the year above $1,700 per ounce. Since the Federal Reserve began using massive bond buying to stimulate U.S. job creation, many investors have flocked to gold as an alternative to printed money.
The rise of so-called “gold bugs” have sparked a debate about whether the Fed’s efforts — combined with runaway public spending and large government deficits — will eventually spark hyperinflation and wholesale devaluation of the U.S. dollar [.DXY 79.86 0.31 (+0.38%) ].
“We have a situation now where when you have too much debt. Too much debt leads to printing of money to make it easier to service,” Dalio said. “So all of those things mean that some portion [of an investment portfolio] should be in gold.”
Legendary investor Warren Buffett has publicly disdained gold, calling the metal unproductive as an asset that pales in comparison to stock returns.
Dalio, however, disagreed. “I think he’s making a big mistake,” the hedge fund titan said. “Over the long term, it’s a little bit better than cash.”
