Ray Dalio Says Gold Deserves 15% Of Your Portfolio

Bridgewater Associates founder Ray Dalio is turning heads again this time with a strong call for investors to boost their exposure to gold. Speaking at the Greenwich Economic Forum in Connecticut, the billionaire investor told CNBC that people should consider putting up to 15% of their portfolios in gold (GLD), calling it a very excellent diversifier.

Dalio said gold shines brightest when traditional assets struggle, describing it as one of the few investments that can hold value when inflation and debt pressure the economy. It's one asset that does very well when the typical parts of the portfolio go down, he said. Comparing today's environment to the early 1970s, he pointed to rising government spending, high debt, and a weakening U.S. dollar as key warning signs.

When you're holding money and you put it in a debt instrument, it's not an effective store of wealth, Dalio said. Gold is the only asset you can hold without relying on someone else to pay you back.

Gold spot prices (CUR) hovered around $3,973 per ounce on Wednesday, after touching $3,990.65 earlier this week. Futures briefly crossed $4,000, signaling continued investor demand.