Bridgewater founder Ray Dalio warned that gold and non-fiat currencies will gain appeal as global debt burdens grow and major currencies risk devaluation. Speaking at the FutureChina Global Forum, he described U.S. government spending and borrowing as “unsustainable,” saying the country faces a looming fiscal crisis that threatens the global monetary system.
Dalio argued that when governments resist curbing excessive deficits, traditional currencies lose reliability as stores of wealth, making diversification into gold more compelling. He recommended investors allocate about 10% of portfolios to gold. He also noted the dollar has fallen over 10% this year and that even other major currencies have weakened against gold, which he called the world’s second-largest reserve currency.
Citing U.S. fiscal strains, Dalio said Washington may need to issue $12 trillion in debt to cover deficits, interest payments, and maturing borrowings,…
