Billionaire Ray Dalio warns US debt rise and points to gold

Ray Dalio told the World Economic Forum in Davos that America’s rising national debt, now above $38 trillion, is a growing concern and that gold can act as insurance for savings; he suggested holding about 10–15% of a portfolio in gold.

Ray Dalio, founder of Bridgewater Associates, spoke at the World Economic Forum in Davos and warned that America’s large and growing national debt is becoming a serious problem. He noted the US has more than $38 trillion in outstanding government debt and said investors holding that debt are becoming uneasy. Dalio described gold as a form of insurance for savings that can also rise in value when demand increases. He suggested ordinary investors might keep between 10 and 15 percent of their portfolios in gold. Details: - Dalio said both Americans and holders of US government debt "are worried about each other," linking rising borrowing to financial strain. - He explained that heavy borrowing can push governments to weaken currencies or keep interest rates low, and he cited that dynamic as one reason gold can hold value. - The article reports that gold’s price rose more than 80 percent in the year since President Trump took office and that a recent figure mentioned was about $4,780 per ounce. - The article mentions common ways for ordinary investors to gain exposure to gold, including exchange-traded funds, physical bullion sold by dealers and some retailers, gold mining stocks, and gold IRAs, with experts quoted on trade-offs among those options. Summary: Dalio’s comments frame the rise in US government borrowing as a factor driving increased interest in gold as a store of value and a hedge against currency or policy shifts. Undetermined at this time.