Ray Dalio has once again sounded the alarm: inflation, monetary overreach, and high debt burdens are combining into dangerous territory — and gold is arguably the best defense.
Speaking publicly on Tuesday, Dalio drew a vivid parallel: “It’s very much like the early ’70s.” In that era, inflation surged, the dollar weakened, and traditional bonds lost purchasing power. He cautioned that today’s excessive debt creation and loose monetary policy could yield a similar fate.
To navigate this environment, Dalio advised investors to allocate ~15% of their portfolios to gold, citing its capacity to hold value when fiat currencies and debt instruments falter.
Gold’s performance in 2025 reinforces his case: prices have risen over 50%, crossing $4,000 per ounce as investors seek refuge from inflation and weakening dollar dynamics.
Still, skepticism remains. Gold pays no dividends and suffers from volatility. Some experts caution that over-allocating can drag performance in stable conditions.
But Dalio’s message is emphatic: when the monetary system is strained by debt and inflation, gold becomes a strategic anchor—less an ornament, more insurance.
