10/20/2025
đŹ Ray Dalio on Gold
Ray Dalio doesnât see gold as a shiny metal or a speculative trade. He sees it as money in its purest and most fundamental form.
đĄ In his view, most investors make a basic mistake. They think of fiat currencies as money and gold as a commodity. In reality, fiat is debt that depends on governments keeping their promises, while gold is a form of money that settles transactions without creating new obligations. It has intrinsic value, it cannot be printed, and it does not depend on any institutionâs credibility.
đĄ Dalio argues that throughout history, every major currency has been devalued or disappeared altogether, while gold has remained a stable store of value. It is the one form of money that survives political cycles, defaults, and wars. When governments print money to prevent debt crises, the real value of fiat declines, and the demand for non-fiat money, like gold, rises.
đĄ He also believes that gold has begun to replace US Treasuries as the worldâs true risk-free asset. Central banks and institutional investors are quietly reducing their exposure to dollar-denominated debt and increasing their gold holdings. In long-term perspective, this shift marks a return to something more stable and independent of government credit.
đĄ For Dalio, gold belongs in every serious portfolio, not as a short-term trade but as strategic protection. He suggests that around ten to fifteen percent of oneâs portfolio should be allocated to gold as a way to balance risks from inflation, debt bubbles, and loss of confidence in fiat systems.
đĄ As Dalio puts it, gold behaves like cash in preserving purchasing power, but unlike cash, it cannot be printed or devalued. That makes it one of the few assets that can protect wealth when trust in everything else begins to break down.
